Trump’s Tariff Truce Triggers Diplomatic Rush to China as Allies Fear Being Left Out of US-China Reset

Xi Jinping

Donald Trump’s tariff war dominated the calculations of America’s allies for much of last year, forcing governments to navigate a volatile trade environment defined by uncertainty and sudden shocks. Now, as the US president dials back hostilities with China, it is Xi Jinping who is capitalising on the moment, welcoming a steady procession of foreign leaders eager to stabilise relations with the world’s second-largest economy.

The shift became unmistakable this month when Lee Jae Myung travelled to Beijing, becoming South Korea’s first president to visit China since 2019. His trip signalled a clear thaw after years of cool ties shaped by regional security tensions and the fallout from US-China rivalry. Days later, Mark Carney arrived in the Chinese capital, closing nearly a decade without a leader-level visit between Ottawa and Beijing.

The diplomatic momentum is set to continue. British Prime Minister Keir Starmer is preparing to travel to Beijing, the first such visit by a UK leader since 2018, with a focus on reviving trade and investment. Germany’s new chancellor, Friedrich Merz, is also expected to make the journey next month, underlining Europe’s renewed push to engage China directly despite lingering strategic mistrust.

This parade of politicians follows months after Trump sealed a tariff truce with Beijing, easing tensions between the world’s two largest economies. Under the agreement, Washington and Beijing stepped back from escalating duties that had rattled global markets. Trump and Xi are scheduled to meet four times this year, and an April summit could see T1qxgqrump become the fifth leader from a Group of Seven nation to visit China within six months—assuming fresh tariff threats do not derail the détente.

“Trump is triggering diplomatic FOMO across the Western world,” said Neil Thomas of the Asia Society Policy Institute, using the acronym for “fear of missing out.” His unpredictable approach, Thomas argued, has left allied leaders anxious to secure direct lines to Xi so they are not sidelined by US-China manoeuvring that could reshape trade and supply chains without their input.

Underscoring the policy shift in Washington, the Trump administration this week moved closer to allowing Nvidia to sell more advanced semiconductors to Chinese customers, while still withholding the most sensitive top-tier products. Under former president Joe Biden, the US had worked closely with allies to restrict China’s access to cutting-edge chips seen as critical to military and artificial-intelligence development.

Xi is using the opening to advance his own strategic goals. One of them is isolating Japanese Prime Minister Sanae Takaichi, whose comments suggesting Japan could deploy its military if China attempted to seize Taiwan have angered Beijing. In a carefully choreographed move, China’s Commerce Ministry unveiled export curbs targeting Japan during Lee’s visit—an announcement that highlighted Beijing’s displeasure while showcasing warmer ties with Seoul. Lee was quick to stress that South Korea’s relationships with all major Asian economies remained equally important.

“Beijing wishes to present itself as a predictable—if not always agreeable—great power,” said Yu Jie of Chatham House. The outreach also allows China to test how far it can go in isolating Tokyo diplomatically over cross-strait issues without provoking a broader backlash among US allies.

Rare earths and other critical minerals provide another powerful incentive for leaders to make the pilgrimage to Beijing. When Trump and Xi struck their trade pact last October, China agreed to a one-year suspension of tighter export controls on several key minerals, materials in which it holds a dominant global position. Trump celebrated the deal as a victory for global stability, but Western governments remain acutely aware of their vulnerability to any future Chinese restrictions.

During a December visit, German Foreign Minister Johann Wadephul said Beijing had signalled a constructive approach to European orders for rare earths. This week, finance ministers from the G7, alongside officials from other economies, met in Washington to discuss how to “address vulnerabilities in critical minerals supply chains,” according to the US Treasury.

The renewed engagement with China also reflects fatigue among US partners after a year of Trump’s tariff pressure, which pushed allies to pledge billions of dollars in investment to avoid punitive measures. At the same time, Trump has stunned capitals by re-engaging Vladimir Putin, pushing to remove Nicolas Maduro from power, and floating provocative ideas about Greenland, a semi-autonomous territory of NATO member Denmark.

“When it comes to repairing ties with China, the reasons for not doing it have evaporated,” said Kurt Tong, a former senior US diplomat in Asia. He pointed to what he described as a “less confrontational” phase in US-China relations that has given other countries political cover to pursue their own interests with Beijing.

Many governments remain wary of China’s export machine, particularly fears that cheap Chinese goods could overwhelm domestic industries. French President Emmanuel Macron described the challenge as “life or death” for European manufacturing after his December visit to Beijing. Yet even critics acknowledge the need for pragmatism when dealing with an economy of China’s scale.

Australia’s Anthony Albanese offered an early model for this balancing act. During his first term, he downplayed security disputes and prioritised trade, helping to repair relations after Beijing imposed punitive measures on Australian exports. His visit to China in November 2023 helped close a tense chapter, and he returned again last year to consolidate gains.

Signs of a broader recalibration are emerging in Europe. This week, the European Union said it would consider setting minimum prices to replace tariffs imposed on Chinese electric vehicles since 2024—a move that could end a dispute that prompted Beijing to target European dairy, pork and brandy producers. In Canada, officials say Beijing is pressing Carney to relax Ottawa’s 100% tariffs on Chinese-made electric cars, introduced in alignment with Biden-era US levies, while offering to ease restrictions on Canadian rapeseed in return.

Starmer faces a similar balancing act as he seeks deals to revive Britain’s sluggish growth while maintaining a tough stance on national security. A pending UK government decision on China’s proposed new embassy in London, expected this month, could influence the tone and outcome of his visit.

Leadership changes have also smoothed the path to engagement. Carney succeeded Justin Trudeau, whose tenure was marred by an extradition dispute with Beijing that froze relations. In Britain, the Conservative government that frequently criticised China over Hong Kong has given way to Starmer’s Labour Party. In South Korea, Lee has adopted a more dovish approach than his predecessor, pressing China to lift its informal ban on K-pop entertainment.

With Xi, now 72, travelling abroad less frequently—he skipped the recent G-20 summit in South Africa—the burden has shifted to foreign leaders to engage him on home ground. For many, the calculation is straightforward.

“Faced with a US acting belligerent and erratic on the international stage, leaders will conclude they need to be at least on decent terms with China,” said Alexander Dukalskis of University College Dublin. For Xi, whose economy is searching for new growth drivers amid slowing momentum, the renewed courtship is a strategic win.

“When your enemy is engaging in self-harm,” Dukalskis added, “sometimes the smartest move is simply to sit back and enjoy the show.”

Related Posts