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On 30 October 2025, Chinese President Xi Jinping and US President Donald Trump held their first in-person meeting since 2019 on the sidelines of the Asia-Pacific Economic Cooperation summit in Busan. The encounter marked a cautious “tentative reengagement” after six years of sustained friction, signalling neither a diplomatic thaw nor a substantive breakthrough, but a forced recalibration. Both sides recognised that prolonged confrontation was increasingly costly, yet neither was willing to display strategic vulnerability or compromise on core interests. The central challenge of this “six-year reunion” was how to balance unavoidable competition with limited cooperation. The Busan meeting did not resolve long-standing disputes, but it did illuminate the evolving structure of bilateral engagement: limited economic de-escalation coexisting with sustained tensions in security and technology. Trust remained thin, and risk management defined the tone. Within this framework of cautious interaction and enduring rivalry, both sides resumed dialogue while leaving key structural contradictions unresolved. Tactical Easing: A “Mutual Ceasefire” over Rare Earths and Tariffs Building on preliminary understandings reached during earlier Kuala Lumpur discussions, the Busan meeting yielded limited but concrete outcomes. Washington agreed to suspend part of its planned tariff increases and delay the expansion of export restrictions. Beijing, in turn, postponed implementation of newly announced controls on rare earth elements and related technologies. These reciprocal measures were explicitly time-limited, with a one-year horizon.While framed as mutual concessions, the steps reflected pragmatic political calculations within each country’s domestic context. President Trump sought short-term economic calm to support financial markets and reassure key Midwestern constituencies ahead of the election cycle. Beijing, for its part, aimed to preserve a stable external environment through managed openness, gaining room for continued economic restructuring and technological adaptation. Yet the truce was fragile. China’s decision to delay export controls was not a concession but a strategic withholding of leverage. As the supplier of roughly 60 percent of the world’s mined rare earths – critical to semiconductors, electric vehicles, wind turbines, and US defence platforms such as the F-35—Beijing retains significant influence over global supply chains. The Busan easing was therefore less a structural breakthrough than a tactical pause: a deferral of escalation rather than a resolution of underlying tensions. Diplomatic Silence over Taiwan: Strategic Caution and Latent Risks The Busan meeting made no reference to the Taiwan issue—an omission that is rare in the history of China–US summitry. Following the talks, President Trump remarked that President Xi “understands the consequences” of attempting to seize Taiwan but declined to clarify whether the United States would intervene militarily. Secretary of State Marco Rubio similarly emphasised that Washington would not trade Taiwan’s interests for economic concessions. Taiwan thus became the “elephant in the room”: too consequential to ignore, yet too politically volatile to confront directly. For Beijing, Taiwan constitutes an inviolable sovereignty red line. For Trump, raising the issue risked derailing trade-focused dialogue and undermining his image of diplomatic control. Both leaders chose strategic silence as a means of avoiding escalation. This silence did not indicate convergence, but rather mutual restraint under high pressure. Taiwan has become a latent variable in every round of China–US engagement: absent from formal discussions, yet structurally embedded in the broader strategic equation. The longer it is avoided, the more its political cost accrues. In the future, renewed tensions—whether triggered by trade disputes or maritime incidents in the South China Seas—could rapidly return Taiwan to the center of bilateral confrontation. Taiwan’s “absence” in Busan does not reduce its relevance; it only signals that the crisis has been temporarily displaced from public diplomacy rather than defused. Institutionalised Decoupling: From Policy Choice to Structural Reality The diplomatic silence over Taiwan reflected tactical caution, while at a deeper level, the Busan meeting underscored the entrenched technological and institutional divergence between China and the United States. Trump signalled that US firms such as NVIDIA might engage in selective transactions involving mid-range AI chips, but reaffirmed that the most advanced semiconductor products would remain tightly restricted. This reaffirmed Washington’s “technology defense logic,” in which high-tech rivalry is governed by national security imperatives rather than market access concerns. In Beijing’s view, technological self-sufficiency is equally central to national resilience and regime security. Both sides now frame their strategic contest as a “struggle over national trajectory,” where concession is viewed as structural vulnerability. As a result, each is doubling down on domestic institutional insulation rather than pursuing negotiated guardrails. This bifurcation has produced a dual trajectory: modest stabilisation in trade flows paired with accelerating fragmentation in high-end technologies. Both governments are using this brief “technological cooldown” to advance structural measures. Washington is deepening coordination with allies and expanding export control and investment screening regimes. Beijing, for its part, is formulating new legal instruments—including draft frameworks akin to a Science and Technology Security Law and prospective regulations on critical technologies—to consolidate oversight over strategic sectors. While these initiatives are not yet fully codified, they reflect a clear intent to embed technology governance within national security architecture. In this context, technology has lost its value as a bargaining lever in diplomacy. Both sides tacitly acknowledge that strategic technologies can no longer be traded without compromising sovereignty. Technological decoupling has thus evolved from a temporary response into a systemic condition. The Busan “easing” did not reflect progress toward convergence, but rather a managed pause in an increasingly institutionalised contest. From High-Intensity Confrontation to Managed Competition The Busan meeting marked a shift in China–US relations from high-intensity confrontation to limited management. The two sides temporarily stabilised trade and exercised restraint on political and security fronts, while competition in technological and institutional domains remained entrenched. This was not reconciliation, nor a turning point, but the formation of a provisional equilibrium. For China, Busan offered a space for economic adjustment and accelerated efforts toward technological autonomy. For the United States, it maintained strategic pressure while averting short-term escalation. Beneath the optics of diplomacy, structural divergence and strategic mistrust persist. Across the Indo-Pacific, this “uneasy coexistence” is increasingly becoming the regional default. The significance of Busan lies not in concrete outcomes, but in the shared recognition that strategic confrontation must be managed, even if it cannot yet be resolved. This article was published under a Creative Commons license and may be republished with attribution, check original source for more information.

Tensions are rising between China and Japan again over a dispute in the East China Sea. Such tensions are usually over the Senkaku Islands, an uninhabited chain administered by Japan but claimed by China. The current row, however, stems from international anxiety over a possible Chinese invasion of democratically ruled Taiwan. On November 17, in her first parliamentary address since taking office in October, Japan’s prime minister Sanae Takaichi suggested that her country could intervene militarily in the event of an attack on Taiwan. Takaichi’s comments sparked anger in China, with state media framing her rhetoric as reminiscent of Japanese acts of violence towards China during the second world war. Beijing has demanded that Takaichi retract her comments – a call she has rebuffed – and is advising Chinese citizens against travelling to Japan, claiming there has been a deterioration in public security there. China has also introduced a blanket ban on Japanese seafood imports as the row continues to escalate. The ruling communist party, which frames itself as the protector of the Chinese nation, has long sought to reunify China following the so-called “century of humiliation”. Starting with the first opium war in 1839 and concluding with the end of the second world war in 1945, this period saw China victimised and partitioned by various foreign powers. Taiwan is thus problematic for the party. The island state broke away from China in 1949 at the end of the Chinese civil war, and its autonomy from Beijing contradicts the goal of national unity that the party has promised. Some observers fear that China will seek reunification through force, with some predictions suggesting it will be ready to invade Taiwan as soon as 2027. There is no guarantee that an invasion will occur. But the international community, led by the US, is preparing for a confrontation over Taiwan regardless. On the same day Takaichi made her comments, the US government announced it had agreed to sell US$700 million (£535 million) of arms to Taiwan. In this context, Japan’s show of support for a strategic partner in the region is not surprising – yet Takaichi’s remarks about Japanese intervention are particularly provocative for China. One reason is that Japan occupied and colonised Taiwan from 1895 to 1945, contributing to China’s century of humiliation. This makes Japanese threats to intervene in Taiwan’s defence a contentious prospect for China to consider. Another reason is that anti-Japanese sentiment is a prominent characteristic of Chinese nationalism. Many Chinese nationalists are vocal in condemning Japan for any provocation, pointing to historical atrocities committed against China as evidence of a need to stay vigilant against renewed Japanese aggression. The idea of Japan intervening to maintain the status quo in what China considers a breakaway province probably falls under their idea of an aggressive act. Will tensions escalate? Outright conflict between China and Japan remains unlikely. It is possible that Takaichi’s remarks were simply an effort to shore up domestic political support, rather than a genuine military threat. Her rightwing Liberal Democratic party (LDP) previously governed Japan in coalition with the centre-right Komeito party. This coalition broke down in October 2025, forcing the LDP to rely increasingly on its nationalist base for support – a group that is generally suspicious of China’s growing military and economic strength. Irrespective of Takaichi’s motive, China has responded assertively. It sent its coast guard to the Senkaku Islands in what it called a “rights enforcement patrol”. The Japanese government has also accused China of flying military drones near Japan’s most westerly territory, Yonaguni, which is close to Taiwan’s east coast. Any misfire risks open hostility between the two nations. The Senkaku Islands are administered by Japan but claimed by China as the Diaoyu Islands. vadimmmus / Shutterstock Relations between Japan and China are tense, yet I see cause for optimism. Takaichi has positioned herself as a successor to the late Shinzo Abe, who served as Japan’s prime minister from 2006 to 2007 and again from 2012 to 2020.Like Takaichi, Abe promoted an assertive Japanese foreign policy. He oversaw reinterpretations of Article 9, the pacifist clause of Japan’s constitution, to lessen restrictions on his country’s use of military force. This included passing legislation in 2015 which allows Japan’s self-defence force to deploy to protect the country’s allies. This legislation has enabled Takaichi to consider military intervention in Taiwan’s favour. When Abe entered office in 2012, it was also a tense time for China and Japan. Japanese nationalist activists swam to the Senkaku Islands and raised their country’s flag, triggering massive anti-Japanese protests in China. Tensions remained high for several years, with both countries deploying ships and warplanes to the region. This resulted in several near-misses that could have escalated into outright conflict. In 2014, Chinese fighter jets flew extremely close to a Japanese surveillance plane and intelligence aircraft near the islands, passing about 30 metres from one plane and 50 metres from another. However, once tensions passed, Abe and China’s leader, Xi Jinping, oversaw several years of relative calm and cooperation between their two countries. In fact, this is usually linked to the familiarity Abe and Xi developed through their interactions while managing their countries’ mutual animosity over the disputed islands. So, if Takaichi can follow her mentor’s lead and successfully navigate the tensions to build an effective working relationship with Xi, a more stable relationship between China and Japan in the future is still possible.