Tensions between China and the United States remain high, yet both powers are making efforts to keep communication channels open. The latest signal? A phone call between deputy foreign ministers, which many analysts see as a cautious diplomatic step forward.
🔹 Talks Continue – Even Without Breakthroughs
On Thursday, China’s Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary of State Christopher Landau spoke by phone. The official readouts were brief and vague, but the timing suggests the call was no coincidence. It came just weeks after face-to-face talks in Geneva, where both sides temporarily lifted tariffs and pledged to work toward a broader deal.
Analysts see the call as a positive sign. “It looks like the Geneva line is actually working,” said Dan Wang of Eurasia Group, pointing to the fact that dialogue itself is rare in today’s tense climate.
🔹 New U.S. Ambassador and the Fentanyl Question
This week, Ma also met with new U.S. Ambassador to China, David Perdue, who emphasized his alignment with President Trump’s goals. One major issue on that list is U.S. pressure on China to crack down on fentanyl precursor exports, which Washington says are fueling the opioid crisis in America.
Chinese scholars expect fentanyl negotiations to become a key agenda item in the next round of talks.
🔹 Geneva Brought a Brief Truce
The Geneva meeting marked a rare moment of calm: the U.S. and China agreed to suspend most tariffs and issued a joint statement — the first of its kind since a climate agreement in November 2023.
However, while the public messaging is diplomatic, a tech conflict simmers behind the scenes. The U.S. government recently ordered domestic companies to stop using Chinese AI chips, particularly from Huawei. Beijing responded with accusations of "unilateral bullying" and warned of countermeasures.
🔹 Dimon Meets Chinese Leaders: Progress Without Clarity
On the same day as the phone call, Chinese Vice Premier He Lifeng also met with JPMorgan CEO Jamie Dimon. He told Dimon that “significant progress” had been made in trade negotiations and that China wanted to further open its markets to American companies.
However, no specific outcomes were announced, and experts remain cautious.
According to Chinese media, Dimon reportedly told officials that the U.S. does not want to decouple from China — a message that contrasts sharply with Washington’s recent moves to restrict technology exports.
🔹 Trade Talks Continue, But Tech Tensions Rise
Analysts at Nomura summarized the situation bluntly: strategic decoupling is inevitable. While Trump’s administration might lift some sector-specific tariffs, access to key technologies is likely to remain blocked. In response, China could restrict the export of rare earth metals, essential for EVs and military applications.
So while diplomats are still picking up the phone, both sides are quietly escalating their economic standoff behind the scenes.
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