Seeking partners in a trade war

The trade war between the United States and China has had consequential results. Washington’s devastating tariffs and Beijing’s Rare Earth Elements (REEs) export controls have driven both sides to seek alternatives and trade partners to alleviate the weight of these measures.

Just days prior to United States President Donald Trump’s expected meeting with his Chinese counterpart Xi Jinping in South Korea, Washington signed a crucial deal with Japan regarding vital REEs supply. Trump has met Japan’s first female prime minister, Sanae Takaichi, in Tokyo, where he managed to secure the trade agreement, which is essential for the American industry. This coincided with Takaichi’s announcement of her plans to nominate the US president for a Nobel Peace Prize, prompting Trump to label her as a “great” leader.

Simultaneously, China sought cooperation with other Asian countries. It has upgraded its free trade agreement with the Association of Southeast Asian Nations (ASEAN) on the sidelines of the latter’s 47th summit in Kuala Lumpur, Malaysia. According to Beijing’s State Council, the deal will broaden collaboration on “infrastructure, digital and green transition, trade facilitation and people-to-people exchanges.”

Both aforementioned agreements represent a win-win situation for all sides. As for Washington and Beijing, however, they represent a much deeper and more impactful outcome amid the ongoing rivalry between the two superpowers. Could the upcoming Trump-Xi meeting signal an opportunity to decrease or, instead, increase the existing rivalry?