Having fought the Trump administration to a draw, China’s Xi Jinping is proposing “constructive strategic stability,” aimed at drawing lines he thinks the U.S. should not cross.
With talks at an impasse, both sides are holding to positions their opponents call unacceptable, while the economic pain caused by the Strait of Hormuz blockade continues to grow.
As the government has been devising plans to keep the dollar dominant, China has been making its own moves to increase global influence of the renminbi.
America’s ability to deter China in a war over Taiwan is weakened, Chinese analysts say, giving Beijing leverage in an upcoming summit with President Trump.
China’s top diplomat also warned against the restarting of hostilities as he met with Iran’s foreign minister. The U.S. has urged China to pressure Iran to reopen the waterway.
With President Trump’s visit to Beijing looming, China is pushing Iran to negotiate even as its companies export material that could be used by Iran’s military.
If President Trump flies to China as planned in May, the primary topic will clearly be the rippling economic effects of a war that Beijing has made clear it viewed as unnecessary.
The Pentagon’s rush to rearm its Mideast forces makes it less ready to confront potential adversaries like Russia and China, administration and congressional officials say.
The war in Iran has disrupted supplies of diesel, used to power trucks and heavy equipment, much more than gasoline, which is primarily used in passenger cars.