The world’s second-largest economy has evolved into a technological superpower. Domestic tech talent is pushing Chinese artificial intelligence models ever closer to the cutting edge of Silicon Valley innovation.<\/p>\n\n\n\n
Companies spanning sectors from energy and AI to robotics and memory chips have staged impressive stock market listings over the past year.<\/p>\n\n\n\n
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- A massive manufacturing engine<\/strong><\/li>\n<\/ul>\n\n\n\n
China\u2019s massive manufacturing engine recorded a global trade surplus of $1.2 trillion last year, driven in part by explosive demand for its electric vehicles, solar panels, and chips.<\/p>\n\n\n\n
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- A reliable global leader<\/strong><\/li>\n<\/ul>\n\n\n\n
And at a time when the US is stoking tensions with allies and has yet to find a way to end its conflict with Iran\u2014which is destabilizing the global economy\u2014Xi is working to bolster China\u2019s image as a responsible and reliable global leader. Greater self-confidence<\/p>\n\n\n\n
“China is far more self-confident than it was nine years ago and, even more importantly, it has now found an effective way to keep the US in check,” said Wu Xinbo, Dean of the Institute of International Studies at Fudan University in Shanghai, who advises the government on foreign policy matters.<\/p>\n\n\n\n
“On Equal Footing”<\/strong><\/p>\n\n\n\n
Xi is traveling to the US amidst a surge of debate regarding the risks of artificial intelligence, including those associated with Chinese models.<\/p>\n\n\n\n
Trump has stated that the country cannot slow down technological development for security reasons, as it must focus on outpacing China.<\/p>\n\n\n\n
This brings a key objective for Xi and his delegation into sharp focus: preventing the US from imposing new technological restrictions that could further limit Chinese companies’ access to American technology or markets.<\/p>\n\n\n\n
However, the shifting balance of power between China and the US also comes into play here. Both sides are aware that new restrictions\u2014if Beijing deems them overly aggressive\u2014could reignite the conflict that last year brought their economies to the brink of full decoupling.<\/p>\n\n\n\n
The truce that ended that round of their trade war was reached only after Beijing threatened to vastly expand export controls on strategically important rare earth elements, in response to a US move that would have drastically increased the number of Chinese companies on the blacklist.<\/p>\n\n\n
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Xi\u2019s World<\/strong><\/p>\n\n\n\n
China is now viewed more favorably than the US in most of the 36 countries surveyed in a new Pew Research poll published in July.<\/p>\n\n\n\n
Researchers also found that Xi narrowly edged out Trump in terms of public confidence. These shifts are linked not only to the changing role of the US on the global stage but also to the evolution of China\u2019s soft power capabilities.<\/p>\n\n\n\n
People around the world are using Chinese artificial intelligence models in their businesses and driving Chinese electric vehicles.<\/p>\n\n\n\n
Viral cultural exports\u2014such as Labubu plush toys and Chinese TV series\u2014along with the “Chinamaxxing” online trend, have boosted interest in China and driven tourism to the country.<\/p>\n\n\n\n
In recent weeks, Xi has undertaken a rare series of diplomatic trips abroad, promoting his vision of China\u2019s leadership role and his own worldview.<\/p>\n\n\n\n
At a summit of the BRICS group of emerging economies in New Delhi earlier this month, he pledged to help member states establish smart factories and develop artificial intelligence models.<\/p>\n\n\n\n
The two ultimatums regarding Iran<\/strong><\/p>\n\n\n\n
Chinese Foreign Minister Wang Yi met with his Iranian counterpart, Abbas Araghchi, in Beijing last week.<\/p>\n\n\n\n
The talks aimed, in part, “to clarify certain issues so that the two leaders could have a more substantive discussion on the matter in Washington,” according to Wu, the policy advisor.<\/p>\n\n\n\n
This gives Beijing the opportunity to signal that any move to impose sanctions or other measures on Chinese companies could deprive Washington of the chance to benefit from China’s ability to engage with both sides.<\/p>\n\n\n\n
“China will tell the US two things,” Wu stated.<\/p>\n\n\n\n
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- “The first is: do not attempt to impose sanctions on Chinese banks or companies for doing business with Iran… and,<\/li>\n\n\n\n
- secondly, forget about military solutions or economic sanctions to end the conflict. You need to sit at the negotiating table for a reasonable peace agreement.”<\/li>\n<\/ol>\n\n\n\n
The stature of a victor<\/strong><\/p>\n\n\n\n
The Chinese delegation is heading to the US with the stature of a victor in the trade war. Incidentally, this is also evident from the fact that, out of the 150 seats at the dinner in the East Room, they demanded to be allocated half. This is unprecedented: usually, the visiting side requests 10% to 20% of the total seats.<\/p>\n\n\n
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Where have the US lost ground?<\/strong><\/p>\n\n\n\n
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- The United States’ trade deficit problem was never resolved<\/em><\/li>\n<\/ul>\n\n\n\n
Technically, the deficit in relations with China did decrease; however, in response, the Chinese began channeling goods through third countries, causing the US to see its deficit with those nations rise.<\/p>\n\n\n\n
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- The US’s critical dependence on Chinese supplies did not disappear<\/em><\/li>\n<\/ul>\n\n\n\n
The Chinese demonstrated this strikingly in the case of rare earth elements.<\/p>\n\n\n\n
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- The US’s leading position in science and new technologies appears to have been lost<\/em><\/li>\n<\/ul>\n\n\n\n
The world uses Chinese artificial intelligence models, drives Chinese cars, and communicates via Chinese smartphones. China produces twice as many PhDs in the sciences and engineering as the United States.<\/p>\n\n\n\n
The lesson of Iran<\/strong><\/p>\n\n\n\n
The situation regarding US “hard power” is even worse than that of “soft power.”<\/p>\n\n\n\n
By redeploying ships and military forces to the Middle East, the US naturally eased the pressure on China. Moreover, by becoming deeply entangled in the Iran issue, it revealed to the entire world the true\u2014and very limited\u2014capabilities of its war machine.<\/p>\n\n\n\n
All of this had already become apparent during Donald Trump’s visit to China in May. Immediately afterwards, the Americans began doing their utmost to avoid upsetting their Chinese counterparts.<\/p>\n\n\n\n
For some time now, the countless NGOs and non-governmental organizations that\u2014funded by American money\u2014campaigned for “human rights” in China have been disbanded and stripped of their funding.<\/p>\n\n\n\n
Likewise, for quite some time, we have heard nothing about the “oppression of the Uyghurs” or the “marginalization of the people of Hong Kong.”<\/p>\n\n\n\n
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- It appears the Americans have completely forgotten about Taiwan.<\/li>\n\n\n\n
- The situation reached a point where even Japan and South Korea rose up, demanding that Washington sign a joint statement regarding the situation in the region.<\/li>\n\n\n\n
- US allies realized that, once again, they had been abandoned: first, they were set on a collision course with China, and then quietly cast aside\u2014sacrificed on the altar of the impending reset in US-China relations.<\/li>\n<\/ul>\n\n\n\n
The Invisible Guest<\/strong><\/p>\n\n\n\n
Moscow will be the invisible guest at these negotiations. Russian territory, resources, the nuclear arsenal, military technologies, and the Northern Sea Route\u2014all of these decisively influence the global balance of power and relations between China and the US.<\/p>\n\n\n\n
Russia is the “wild card” that determines the outcome of even the most complex game. Without Russia, these two Leviathans can neither devour one another nor truly reconcile.<\/p>\n","protected":false},"excerpt":{"rendered":"
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- The US’s leading position in science and new technologies appears to have been lost<\/em><\/li>\n<\/ul>\n\n\n\n
- The US’s critical dependence on Chinese supplies did not disappear<\/em><\/li>\n<\/ul>\n\n\n\n
- The United States’ trade deficit problem was never resolved<\/em><\/li>\n<\/ul>\n\n\n\n
- A reliable global leader<\/strong><\/li>\n<\/ul>\n\n\n\n