US President Trump and Chinese President Xi Jinping held a summit meeting in South Korea that brought temporary relief to US-China relations. Hsien-Ming Lien, President of the Chung-Hua Institution for Economic Research (CIER), characterized the talks as “a temporary ceasefire with predetermined conclusions.” He observed that the two sides reached only limited agreement on tariff reductions and agricultural product purchases, with no substantive breakthroughs achieved. The trajectory following the meeting is expected to return to the central themes of long-term strategic rivalry and supply chain decoupling.
President Lien’s analysis indicates that US-China economic and trade interactions have shifted from short-term confrontation to long-term competition. China has positioned itself comprehensively across multiple dimensions, including rare earth elements, agricultural products, and trade instruments, while the United States has exchanged a ten-percentage-point tariff reduction for purchase commitments. This demonstrates both sides maintaining a delicate balance of “fighting without breaking the alliance.” President Lien further emphasized that Taiwan holds a critical position in the global semiconductor supply chain, and the international community need not worry about Taiwan “being sold out.” Instead, Taiwan should respond to changing circumstances with confidence and flexible strategies.
Guo-Chen Wang, Assistant Research Fellow of the First (Chinese Economy) Research Division, added that the Trump-Xi summit was essentially a “truce agreement.” The focus of US-China relations has shifted from trade friction toward technological and strategic confrontation. While both sides have temporarily eased tensions, they are preparing for economic and technological divergence. US-China competition will become the new norm going forward, and the global supply chain and economic order will be reshaped accordingly.
Author: CIER Editorial Team
Date: November 5, 2025