The tariff extension shows Trump's effective negotiating strategy is working. China has taken "significant steps" toward addressing trade imbalances and national security concerns, proving that tough tariff threats force Beijing to the bargaining table. The relationship between Trump and Xi remains strong, creating opportunities for a comprehensive deal.
China holds significant leverage in these negotiations through its control over rare earth mineral exports and strategic materials crucial to U.S. manufacturers. Beijing sees itself in a stronger position compared to previous trade talks and will likely use this advantage to pressure Washington for concessions without making substantial changes to its own trade practices.
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