US-China rivalry seen shifting from tariff disputes to broader economic security competition; analysts urge Seoul to strengthen alliance while keeping lines open with Beijing on North Korea

US President Donald Trump and Chinese President Xi Jinping exit Marine One after a test ride. [AFP/Yonhap]
US President Donald Trump and Chinese President Xi Jinping exit Marine One after a test ride. [AFP/Yonhap]

The US-China summit laid bare differences over Taiwan and the war with Iran, with analysts concluding the two sides did little more than reaffirm the framework of their strategic competition. For South Korea, experts say, the outcome underscores the need to steadily develop the alliance with Washington while maintaining strategic communication with Beijing on North Korean issues.

Yu Ji-hun, a research fellow at the Korea Institute for Defense Analyses, said Friday that "the significance of the summit lies not in ending strategic competition but in reconfirming the framework for managing it." He added that the two leaders' mutual visits to Beijing and Washington within just four months "appears to reflect an intent to prevent a sharp deterioration in US-China relations through direct communication at the summit level."

Donald Trump and Chinese President Xi Jinping met Thursday in Washington to discuss major issues including trade, security, AI and advanced technology. The Chinese side reaffirmed the "constructive strategic stability relationship" agreed upon in May and outlined an approach centered on cooperation while keeping competition under control and managing differences.

According to the US side, the bilateral trade truce — set to expire in November — was extended by two months, but core issues including tariffs, rare earths, Chinese purchases of US goods and advanced technology controls were deferred to follow-on negotiations. The outcome was widely interpreted as limited tension management rather than a comprehensive agreement on economic and technology issues.

Also notable was the discussion of establishing an emergency communication channel to address AI safety incidents. This signals that US-China competition has moved beyond tariff-centered trade disputes to a broader contest over economic security encompassing AI, advanced technology, critical minerals and supply chains.

On the security front, efforts to stabilize the relationship and strategic competition are likely to proceed simultaneously. The two countries' fundamental differences over Taiwan persist, with China continuing to press the issue of US support for the island.

Yu said that because the two leaders confirmed a shared goal of North Korean denuclearization at their May summit, "space for US-China consultations on North Korea's nuclear and missile programs and stability on the Korean Peninsula remains intact." He added that it is "more appropriate to view this summit not as a relaxation of US-China strategic competition, but as part of a longer-term process of managing that competition while reducing the risk of direct conflict."

South Korea, analysts say, should therefore focus on adapting to the evolving nature of the competition rather than expecting short-term improvement in US-China relations.

Yu recommended that Seoul "continue to develop the US-South Korea alliance and combined defense posture on the security side, while maintaining the strategic communication with China needed for North Korean issues and regional stability." On economic security, he said South Korea should "strengthen competitiveness in strategic industries such as semiconductors, AI, critical minerals and shipbuilding, and reduce risks arising from excessive dependence on any single country or supply chain." His broader point was that the challenge for Seoul is not simply a matter of choosing sides between Washington and Beijing, but of expanding South Korea's strategic options by building up its own security and economic security capabilities.

Meanwhile, Xi was reported to have told Trump during the summit that he hoped the United States would "uphold the correct position of opposing 'Taiwan independence' and handle the Taiwan issue prudently." Xi was also said to have reiterated directly to Trump that "China's position on safeguarding national reunification and territorial integrity is very clear."

How Trump responded to Xi's demands was not disclosed. Chinese media outlets that reported Xi's remarks did not indicate whether Trump made any comment in response.

Trump appeared to avoid raising the Taiwan issue in public, however. When reporters asked him at the White House helipad after the summit whether Taiwan had been discussed, he said only, "We had a great meeting."

Differences between the two leaders were also apparent on the war with Iran, not just on Taiwan.

Trump has been hoping China will play some role in the nearly seven-month-old conflict with Iran, or at least join in applying economic pressure on Tehran.

Xi's remarks on the Iran war, however, remained at the level of general principle — expressing hope that "both sides return as soon as possible to the track of resolving the issue through dialogue and negotiations, ultimately reach a comprehensive agreement including on the nuclear issue, and achieve peace at the earliest opportunity."


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