25-10-2025

US-China Trade War Escalates Amid Diplomatic Tensions

Date: 25-10-2025
Sources: economist.com: 2 | news.sky.com: 1 | nytimes.com: 3 | scmp.com: 2 | theguardian.com: 1
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Image Prompt:

A dramatic illustration of the flags of the US and China, with a background of rising tensions and trade graphs

Summary

The ongoing trade war between the US and China is intensifying, with both nations engaging in retaliatory measures, including tech-export restrictions, tariffs, and sanctions. Amidst rising tensions, diplomatic efforts are underway, including trade talks in Kuala Lumpur and a potential meeting between US President Donald Trump and Chinese leader Xi Jinping. Regional countries are caught in the middle, navigating their relationships with both powers.

Key Points

  • US and China are engaged in a series of retaliatory measures, escalating the trade war
  • Diplomatic efforts, including trade talks in Kuala Lumpur, aim to de-escalate tensions
  • Regional countries, such as Thailand and Singapore, are navigating their relationships with both powers

Articles in this Cluster

The icy cold war America is busy losing | The Economist

The article discusses the growing importance of the Arctic region in the context of great power competition between the US, Russia, and China. It highlights the strategic significance of Alaska and the Aleutian Islands, particularly the island of Adak, which could serve as a crucial military base for the US. The article argues that the US is neglecting its Arctic flank, particularly around Alaska, where Russian and Chinese military activities are increasing. The author suggests that the US should revive the old military base on Adak to improve its ability to defend its homeland and project power in the region.
Entities: Arctic, Alaska, Adak, Aleutian Islands, Donald TrumpTone: analyticalSentiment: negativeIntent: inform

Why China is winning the trade war

The article argues that despite the US's aggressive stance, China is winning the trade war between the two nations. The US and China have been engaging in a series of retaliatory measures, including tech-export restrictions, tariffs, sanctions, and restrictions on rare earths. However, the article contends that the US's perception of having the upper hand is misguided, and China is actually in a stronger position. The article highlights the poor communication between the two sides and the uncertainty surrounding the upcoming meeting between Donald Trump and Xi Jinping.
Entities: Donald Trump, Xi Jinping, South Korea, America, ChinaTone: analyticalSentiment: neutralIntent: inform

New Japanese Prime Minister Sanae Takaichi vows to bolsters defence spending | World News | Sky News

New Japanese Prime Minister Sanae Takaichi has vowed to bolster defence spending in the face of regional tensions with China, North Korea, and Russia. In her first speech, Takaichi announced that Japan will spend 2% of its GDP on defence by March 2026, ahead of the original target of 2027. The decision is driven by the current security situation, including Russia's invasion of Ukraine and the conflict in the Middle East. Takaichi is expected to face demands from US President Donald Trump during his upcoming visit to Tokyo, including further increases in defence spending and more purchases of American weapons. The Prime Minister also addressed domestic issues, including rising prices, stagnant salaries, and a labour shortage, and announced plans to increase rules for foreigners in Japan.
Entities: Sanae Takaichi, Japan, China, North Korea, RussiaTone: neutralSentiment: negativeIntent: inform

Asia, Caught in the Middle, Faces Trump and Xi’s Tug of War - The New York Times

The article discusses the upcoming meeting between US President Trump and Chinese leader Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea. The two leaders will discuss trade deals, China's new export controls on rare earths, and other issues, amidst a backdrop of increasing competition between the US and China for influence in Asia. Countries in the region, such as Thailand, Singapore, and Indonesia, are caught in the middle and are trying to navigate their relationships with both powers without being seen as taking sides. The article highlights the uncertainty and skepticism surrounding the US's commitment to its allies and partners in the region, and the potential consequences of a trade war between the US and China.
Entities: Xi Jinping, Donald Trump, Asia, China, United StatesTone: neutralSentiment: negativeIntent: inform

Trump Leaves Behind a Reeling Washington to Chase a Deal With China - The New York Times

President Trump is embarking on a diplomatic tour of Asia, seeking to negotiate a trade deal with China amidst a backdrop of turmoil at home, including a government shutdown and deployment of the National Guard to several American cities. The trip is crucial as the tariff against China is set to rise to 157% on November 1, and Trump's meeting with Chinese President Xi Jinping will be closely watched for signs of a potential agreement. Trump's approach to China has been marked by aggression, including tariffs and threats, but he has also expressed a desire to be 'good to China.' The meeting's outcome is uncertain, with experts warning that Trump's unpredictable nature could lead to dramatic developments.
Entities: Donald Trump, China, United States, Xi Jinping, AsiaTone: neutralSentiment: negativeIntent: inform

Trump’s Asia Tour: Deals, Diplomacy and a Meeting With Xi - The New York Times

President Trump is embarking on a nearly weeklong tour of Asia, visiting Malaysia, Japan, and South Korea, and meeting with Chinese leader Xi Jinping. The trip is his first to the region during his second term and comes amid ongoing trade tensions and diplomatic efforts to stabilize ties with the United States. The tour is expected to focus on trade agreements, security issues, and the region's growing concern about China's increasing assertiveness. Trump hopes to sign a trade agreement with Malaysia and witness a peace agreement between Thailand and Cambodia. He will also meet with regional leaders and discuss issues such as tariffs, investment, and military spending.
Entities: President Trump, Xi Jinping, Malaysia, Japan, South KoreaTone: neutralSentiment: negativeIntent: inform

China, US trade talks start in Kuala Lumpur ahead of possible Xi-Trump summit | South China Morning Post

Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent have started a new round of trade talks in Kuala Lumpur, Malaysia, to de-escalate tensions between the two nations on issues such as tariffs, rare earths, and soybeans. The meeting is the fifth face-to-face between He and Bessent since the US President Donald Trump escalated the trade war in April. The talks follow a video call between the two officials a week earlier and could pave the way for a potential meeting between the presidents of the world's two largest economies. Tensions between the two global powers have been volatile in recent weeks, particularly after Beijing announced export controls on rare earth elements in retaliation for Washington's expanded entity list.
Entities: He Lifeng, Scott Bessent, Donald Trump, Xi Jinping, ChinaTone: neutralSentiment: neutralIntent: inform

Chinese envoy calls for ‘shared prosperity’ as possible Xi-Trump summit approaches | South China Morning Post

China's ambassador to the US, Xie Feng, has called for 'shared prosperity' as a possible summit between Chinese President Xi Jinping and US President Donald Trump approaches. Xie emphasized the need for cooperation between the two nations, citing their status as the world's largest economies. The comments come amid a resurgence of trade tensions between the US and China, with high-level delegations from both sides meeting in Kuala Lumpur for economic and trade consultations. Xie urged the US to cooperate with China in accordance with the principles of mutual respect, peaceful coexistence, and win-win cooperation.
Entities: Xi Jinping, Donald Trump, Xie Feng, China, United StatesTone: neutralSentiment: positiveIntent: inform

Trump says he would be open to meeting Kim Jong-un as he embarks on whirlwind Asia tour | US foreign policy | The Guardian

US President Donald Trump has embarked on a five-day tour of Asia, visiting Malaysia, Japan, and South Korea, where he is expected to hold high-stakes trade talks with Chinese leader Xi Jinping. Trump expressed openness to meeting North Korean leader Kim Jong-un, despite US officials downplaying the possibility. The trip is seen as crucial in resolving the ongoing trade war between the US and China, with global markets watching closely for a potential deal.
Entities: Donald Trump, Xi Jinping, Kim Jong-un, Asia, ChinaTone: neutralSentiment: neutralIntent: inform