US-China trade talks: The fact neither side is saying much on the outcome – says a lot
In the absence of detail, all we can do is read between the lines of what may or may not have been agreed in the London talks between the US and China.
And a degree of scepticism feels appropriate.
The fact neither side is saying much says a lot in itself. A major new breakthrough seems unlikely.
You only need to compare it to the conduct of the delegations following the first round of talks in Geneva to feel the difference in tone. Those talks did indeed yield significant breakthroughs including temporary reductions to most of the tariffs and an agreement to keep talking.
There, the Americans in particular were quick to get in front of the cameras to describe the “substantial progress” with Trump himself extolling “a total reset” in the relationship.
Not so this time.
Instead we have relatively dry statements from both sides about a “framework to implement the consensus” reached at both Geneva and during a phone call between Trump and Xi last week.
Any further description was tepid at best, with China’s official news agency describing the discussions as “candid” a word often used when there has been substantial disagreement.
Read more: Why Trump blinked in US-China trade war
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May: US and China end trade war
High stakes
It’s hard to overstate how high the stakes have become.
What started as a trade war has morphed into a dangerous supply chain war with the potential to wreak deep economic harm.
And by most assessments, it is China that has the upper hand.
Indeed, while the US has introduced a spate of new measures designed to block China’s access to high-tech chips, China has moved to slow and complicate the exports of crucial rare earth minerals to the US.
These metals are absolutely vital in the manufacture of everything from cars to weaponry, and China has the vast majority of the world’s supply.
The new controls have brought some production lines to the brink of standstill, and the West is alarmed.
On the ground here in China you get a sense that while this standoff will cause pain, there is confidence too, particularly in its ability to home grow the type of technology the US is attempting to block.
Indeed, as these talks were ongoing, a branch of the Chinese government was showing foreign journalists around usually hard-to-access high-tech businesses.
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April: US ends zero duty on Chinese goods
A confident China
A controlled and choreographed affair, yes, but an insight too into where government attention and priorities lie and where they are feeling confident.
“We’ve caught up with America in terms of technology and quality,” said Zhou Zhiliang, CEO of GeneMind, a high-tech DNA sequencing and diagnostics company.
“We just need to catch up in terms of the market, building trust in Chinese products and the scale of utilisation.”
Others, when we asked about restrictions imposed by the US, seemed relatively unfazed.
“The trade friction between China and US will have an impact on many industries,” said Zhang Jinhua, founder of IASO Biotechnology, a company specialising in high-tech cell therapies.
“But this is what running a business is like, you always have to face challenges and situations you never expected before, you have to face them.”
And while some moments of candour reveal the frustrations faced by Chinese businesses, the attitude seems to be that none are insurmountable.
“We were selling our products via Amazon, although we now face some problems,” said Yu Kai, co-founder of conversational AI product AISpeech.
“But I believe it can be solved. The current technology dispute doesn’t affect us very much, because we rely on ourselves.”
Indeed, that is the key problem for the US.
China can increasingly rely on itself and is making rapid progress in the development of its own chips and AI technology.
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In contrast, the US is totally beholden to China on rare earths; the development of its own supply would be lengthy and extortionately expensive.
With this upper hand, China will have been driving an exceedingly hard bargain in London.
In an atmosphere of extreme distrust, where neither side will want to be seen to concede, reaching a sustainable truce will be very hard indeed.
Donald Trump has said that his 28-point peace plan for Ukraine is “by far” not the “final offer”, ahead of crisis talks in Geneva.
Meeting on the sidelines of a G20 summit in South Africa, European and other Western leaders scrambled to respond to the US president’s demand for Ukraine to accept the plan drawn up by the Trump administration and the Kremlin.
In a joint statement on Saturday, they said the plan announced on Friday could serve as a basis for talks to end Russia’s war in Ukraine but required “additional work”.
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How Ukraine peace plan came about
Follow the latest on the Ukraine peace plan
As a result, a meeting has been hastily convened in Geneva, Switzerland, on Sunday, where national security advisers from the E3 – France, Britain and Germany – will meet EU, US and Ukrainian officials for further discussions.
Ahead of the talks, Volodymyr Zelenskyy said in a video address to his nation that Ukrainian representatives at the talks “know how to protect Ukrainian national interests and exactly what is needed to prevent Russia from carrying out” another invasion.
“Real peace is always based on security and justice,” the Ukrainian leader added.
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PM: ‘More to do’ on US Ukraine peace plan
The 28-point peace plan closely resembles the list of demands repeatedly stated by the Kremlin since it launched its full-scale invasion of Ukraine nearly four years ago and if adopted, would see Ukraine cede territory to Russia – and cut the size of its military.
Mr Trump has said he wants a response from Ukraine by Thursday, while suggesting an extension could be possible.
On Saturday, Mr Trump told reporters outside the White House that the plan was not the “final offer” when asked.
He said: “We’d like to get the peace, it should’ve happened a long time ago. The Ukraine war with Russia should’ve never happened. If I was president, it would have never happened. We’re trying to get it ended. One way or another, we have to get it ended.”
His secretary of state Marco Rubio insisted that the peace proposal was authored by the US, despite what a handful of senators have alleged.
“It is based on input from the Russian side. But it is also based on previous and ongoing input from Ukraine,” he said.
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The 28-point peace plan explained
Leaders have sought to balance praise for President Trump’s attempt to end the war with recognition that some terms in his proposal are unpalatable for Kyiv.
“There are many things that cannot simply be an American proposal, which requires broader consultation,” French
President Emmanuel Macron said on the sidelines of the G20, adding that an agreement had to allow for peace for Ukrainians and “security for all Europeans”.
German Chancellor Friedrich Merz underlined the importance to Europe of supporting Ukraine.
“If Ukraine loses this war and possibly collapses, it will have an impact on European politics as a whole, on the entire European continent. And that is why we are so committed to this issue,” he said.
“There is currently an opportunity to end this war, but we are still quite a long way from a good outcome for everyone.”
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Keir Starmer calls for growth plan at G20
Prime Minister Sir Keir Starmer told reporters in Johannesburg: “We are concerned about [caps on military], because it’s fundamental that Ukraine has to be able to defend itself if there’s a ceasefire.”
He said the proposal “requires additional work”, adding: “And that’s why there’s been the agreement that in Geneva tomorrow [Sunday], you’ll have senior US personnel, you’ll have European NSAs [national security advisers], including the UK NSA, and obviously Ukrainians there to work further on the draft.”
Sir Keir also spoke to Mr Trump, relaying discussions held at G20 to the US leader, according to a Downing Street spokesperson, who added that the two leaders would speak again on Sunday.
Meanwhile, Sir Keir, who has defended his decision to fly to the G20 days before a difficult budget, said the role of the G20 is “critical at this moment”.
“The G20 has worked together before to fix fundamental problems in the global economy. We need to find ways to play a constructive role again today in the face of the world challenges,” he said.
“I’d like to see us come together around a five-point plan for growth that leaves no one behind.”
Sir Keir Starmer, Emmanuel Macron and Friedrich Merz at the G20 summit. Pic: PA
The US, however, is boycotting the talks.
The Trump administration made its opposition to South Africa’s G20 agenda clear earlier this year when the country started holding meetings ahead of the summit. South Africa gets to set the agenda as the country holding the rotating G20 presidency.
G20 leaders broke with tradition and adopted a declaration at the start of their summit – despite opposition from the US.
Vincent Magwenya, spokesman for South African president Cyril Ramaphosa, said a leaders’ declaration was adopted unanimously in Johannesburg.
The White House later accused South Africa of refusing to facilitate a smooth transition of the G20 presidency.
Pic: AP
Read more:
Analysis: Europe scrambles at G20 over Ukraine peace plane
G20 lands in South Africa: But who feels forgotten?
The G20 bloc was formed in 1999 as a bridge between rich and poor nations to confront global financial crises.
While it often operates in the shadow of the powerful Group of Seven nations, G20 members represent around 85% of the world’s economy, 75% of international trade and more than half the global population.
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