Trade Tensions Rise: U.S. and China Scramble to Salvage Critical Summit

The U.S. and China rush to salvage their upcoming summit amid escalating trade tensions. Both nations try to assert dominance, complicating negotiations. China's control over rare earths and the U.S.'s tariff threats highlight the fragile truce in the trade relationship, crucial to each nation's economy.

Just weeks after U.S. President Donald Trump boasted of progress in negotiations with China, both nations are in a last-minute scramble to preserve a critical leadership summit. This meeting is jeopardized by rising trade tensions, with both countries blaming each other for the escalations.

Despite talk of potential progress, experts argue the fundamental belief from both sides that they hold the upper hand is leading to an impasse. China's recent measures, including restrictions on rare earth exports, have augmented trade risks, highlighting Beijing's leverage over essential supply chains.

The volatile situation reflects deeper challenges, with U.S. and Chinese officials preparing to meet soon in Malaysia to seek an off-ramp. Meanwhile, talks are complicated by both countries' firm belief in the strength of their respective economies, leaving scant room for negotiation breakthroughs.

(With inputs from agencies.)