Trump-Xi summit called victory for China despite agreements on tariffs and fentanyl

For years, being “soft” on China was a political insult thrown across the aisle. Competition between great powers reigned. Washington was increasingly preparing for the possibility of war with Beijing as the national security world turned its attention to the Indo-Pacific.

The scene in Washington last week was markedly different as President Donald Trump attempted to usher in a new era with the world’s second-largest superpower and a growing adversary — especially when dealing with an ever-changing technology landscape.

Trump welcomed Chinese President Xi Jinping with a red carpet and the pomp of a state visit last week, speaking warmly of his relationship with the Chinese Communist Party (CCP) leader as the two sides sought new areas of cooperation.

“The summit went well – for Xi Jinping,” Scott Kennedy, an expert on the Chinese economy at the Center for Strategic and International Studies, told Fox News Digital.

President Donald Trump and Chinese President Xi Jinping pictured at a state dinner at the White House. (Kevin Dietsch/Getty Images)

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The reception was striking given how leaders in Washington have spent years describing the challenge posed by Beijing: Chinese hackers infiltrating U.S. networks, state-backed efforts to steal U.S. technology and trade secrets, unfair trade practices and a rapidly expanding military with its sights set on Taiwan.

Gordon Chang, a Chinese analyst and author who has long advocated a tougher line on Beijing, said there was a difference between keeping the lines of communication open with a rival and giving Xi the reception he received in Washington.

“I understand that you need dialogue, but when you have that dialogue, you don’t necessarily need all the ceremony and all the legitimization,” Chang told Fox News Digital. “We can talk to the Chinese, but we don’t need to do it like it happened last week.”

Trump is betting, however, that a warmer relationship with Xi can produce results despite these lingering differences. The question is how much Beijing’s behavior has actually changed – and what Washington is willing to put up with in pursuit of a more stable relationship.

Kennedy explained that “the United States got a few things: an agreement to reduce tariffs on goods worth $60 billion, some purchases of specific products (such as agriculture and coal), the establishment of a dialogue on AI, and alignment on major goals regarding Iran and the Strait of Hormuz.”

“But Xi emerged victorious because the current trade ceasefire mainly benefits Beijing,” he added. “This gives them time to relentlessly pursue their drive for technological autonomy, narrow their lead in various sectors, including AI, and maintain an unbalanced business relationship with their trading partners.”

U.S. President Donald Trump walks on a red carpet after greeting Chinese President Xi Jinping during an arrival ceremony September 23, 2026 at Joint Base Andrews, Maryland. (Chip Somodevilla/Getty Images)

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Chang identified the same commodity as particularly valuable to Beijing: time.

“While we speak, we are postponing any action,” Chang said. “So China has fallen behind. And that is, I think, absolutely critical.”

The administration has secured intervention from Beijing on some long-standing disputes.

China has tightened controls on chemicals used to make fentanyl and, according to the White House, arrested 21 Chinese nationals in August based on information provided by U.S. law enforcement. Trump continues to pressure Xi to permanently restrict the use of new chemical precursors, but the moves mark tangible progress on an issue that has plagued Washington for years.

Trading is more complicated.

Trump and Xi emerged from last week’s negotiations with a new list of $30 billion worth of U.S. goods and $30 billion worth of Chinese goods recommended for reduced tariffs. For U.S. exporters, this could mean better access to the Chinese market for agricultural products, seafood, lumber, cosmetics and medical devices.

But there is a gap between the announcement and its impact. Both countries have agreed to consider favorable tariff treatment for these products – they have not yet put all of these reduced tariffs into effect.

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And Washington is still working to get Beijing to respect the commitments it has already made.

Nowhere is this more consequential than in the case of critical minerals, where China’s dominance of global supply chains gives it enormous leverage over sectors from automobiles to weapons production.

After his May summit with Xi, Trump announced that China had agreed to address U.S. concerns about shortages of rare earths and other critical minerals.

Four months later, the problem is still not resolved.

The White House said after last week’s summit that Washington and Beijing “continue to work” to restore adequate deliveries. No new comprehensive agreement on critical minerals has been announced.

“China has failed to meet its commitments to supply these minerals,” Chang said.

The gap between Washington’s warmer posture and its long-standing concerns about Beijing extends beyond trade.

U.S. President Donald Trump and Chinese President Xi Jinping attend a bilateral meeting at the Great Hall of the People May 14, 2026 in Beijing, China. President Trump meets with President Xi Jinping in Beijing to address the Iranian conflict, trade imbalances and the situation in Taiwan, while establishing new bilateral councils for economic and AI oversight. (Alex Wong/Getty Images)

Ahead of Xi’s visit, Trump was asked about Chinese espionage and cyber activity — a problem that U.S. officials have spent years describing as one of Beijing’s most persistent threats.

“When they say China is spying on us, I say you’re right, and we’re spying on them too,” Trump said. “Basically, they do what we do.”

Trump’s own intelligence community describes the threat in markedly different terms.

The Intelligence Community’s 2026 Annual Threat Assessment calls China the “most active and persistent cyber threat” to the U.S. government, private sector and critical infrastructure networks. U.S. officials have accused Beijing-linked hackers of breaking into telecommunications networks through the Salt Typhoon campaign and prepositioning themselves inside critical infrastructure via Volt Typhoon — activity that officials say could give China the ability to disrupt communications, energy, transportation and water systems in a future crisis.

“Yes, we spy on each other, but there is a difference in the world of espionage,” Chang said.

“There are so-called legitimate targets. These are the governments of each state, the defense contractors. What is not considered legitimate is the spying on civilian institutions, NGOs, universities, everything else. That’s what China does.

“I don’t think it’s his job to make excuses for China. His job is to protect the United States.”

Taiwan offers another test of the new relationship.

A roughly $14 billion weapons program for the self-ruled island remains in limbo months after Trump described it as a “very good bargaining chip” in his dealings with Beijing. China claims Taiwan as its territory and continues military activities around the island even as relations with Washington heat up.

“I feel like Taiwan is nervous,” Chang said, pointing to the still-pending package. “We still haven’t gotten the green light for this package.”

Soldiers pose for group photos with a Taiwanese flag after a readiness enhancement exercise simulating defense against military intrusions from Beijing, ahead of the Lunar New Year in Kaohsiung city, Taiwan, January 11, 2023. (Daniel Ceng/AP Photo)

Trump has also turned to Xi for help beyond the Indo-Pacific. U.S. Ambassador to China David Perdue said Trump warned Xi against bringing Chinese intelligence, components or military assistance to Tehran amid the war with Iran and suggested Beijing then took action, saying, “They took some things back.”

Perdue has not publicly clarified what China has reduced.

The relationship that is emerging is therefore not simply a story of rapprochement. It’s a test of Trump’s bet that engagement with Xi can produce concrete results while managing threats that Washington still considers serious.

So far, the results have been mixed.

Beijing has taken action on fentanyl and both countries are considering cutting tariffs on billions of dollars of goods. But China’s commitments on essential minerals remain unresolved. Its cyber operations remain a major concern for American intelligence. U.S. defense strategy remains heavily focused on deterring China in the Indo-Pacific region, and Taiwan remains one of the most dangerous potential conflict points between the two powers.

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What has changed most dramatically, at least so far, is the relationship at the top – and Trump’s willingness to bet that engagement with Xi can manage these risks better than confrontation alone.