China

China-US Focus | English | AcademicThink | Jan. 2, 2026 | Shifting Geopolitical Alliances

In October 2025, Presidents Donald Trump and Xi Jinping met in Busan, South Korea, marking their first summit since Trump’s second term began. The 100-minute meeting produced headline agreements on trade, fentanyl control, and rare earth mineral export policies, reflecting cautious optimism but also highlighting divergent national agendas. The U.S. secured Chinese commitments to curb fentanyl flows, increase agricultural purchases, and lift export controls on rare earths, which had become a critical issue threatening key American industries.

For the Trump administration, the meeting emphasized both practical economic gains and symbolic political victories, particularly showcasing Trump’s negotiation skills and envisioning the summit as a step toward restoring respect and stability in U.S.–China relations. Trump publicly celebrated expanded Chinese agricultural purchases as a boon for American farmers and framed the dialogue as fostering mutual respect and peaceful collaboration. Beijing, meanwhile, sought relief from expansive U.S. tariffs and the removal of port fees, portraying the measures as provocative. The concession to reduce tariffs from 57 to 47 percent was a modest but significant diplomatic win for China, reinforcing its belief that a proactive and calibrated engagement strategy yields results.

China also valued cultivating a positive personal rapport with Trump to capitalize on flexible diplomatic channels absent in more traditional U.S. administrations. Broadly, the Busan summit illustrated Beijing’s shift from earlier aggressive diplomacy to a more disciplined approach that balances economic leverage with partnership narratives. Both sides publicly hailed the summit’s outcomes as successes, though substantial ambiguity remains regarding implementation, enforcement, and timelines. Chinese statements emphasized consensus and mutual understanding over binding commitments, signaling a preference for diplomatic flexibility.

Looking forward to 2026, multiple high-level meetings are planned, but underlying tensions persist due to differing expectations and interpretations of agreements. Trump’s vision of the U.S. and China as a global “G2” partnership contrasts with Beijing’s rejection of this status, emphasizing a focus on domestic governance rather than global leadership. This fundamental divergence in worldview threatens to undermine the fragile optimism born at Busan, as each side believes it has gained the upper hand while potentially misreading the other’s intentions. The summit may thus be remembered more for its symbolic restoration of dialogue than for durable resolution of deep-seated bilateral challenges.

Xinhua | English | News | Jan. 2, 2026 | Regulation

Shanghai has enacted new regulations to promote the cruise economy, with a 27-article framework passed by the Standing Committee of the Shanghai Municipal People's Congress. These regulations will come into effect on March 1, 2026, aiming to support high-quality growth in the city's cruise industry.

Key measures include piloting "cruises to nowhere," allowing international ships to depart from and return to Shanghai without docking at any ports, operating within approved waters. The city will also enhance port services by accelerating the installation of shore power systems and encouraging home-port cruise ships to use this energy mode. Support for green fuels and new energy technologies is also emphasized.

The regulations focus on improving the competitiveness of the cruise industry by fostering port-city integration, promoting cultural, tourism, commercial, sports, and exhibition activities around waterfront areas and ports. Between 2006 and 2025, Shanghai hosted over 3,500 cruise ships and more than 18 million passengers, capturing over 60 percent of China's cruise market. Currently, Shanghai houses Asia's largest and the world's fourth-busiest cruise home port.

亚投行成立十年：促进全球共同发展 树立多边合作典范

China Today | Local Language | News | Jan. 2, 2026 | UndeterminedEconomic Growth

Over the past ten years, the Asian Infrastructure Investment Bank (AIIB) has expanded its membership to 111 countries, covering 81% of the world’s population and 65% of global GDP. It has approved approximately 360 projects with close to $70 billion in financing, focusing on infrastructure that promotes common development and regional prosperity. The AIIB has established a reputation for professionalism, efficiency, and pragmatism, serving as a model for multilateral cooperation and global financial governance.

The AIIB operates on principles of multilateralism, emphasizing equal participation, joint consultation, and consensus decision-making among developing and developed member countries. The bank maintains over 100 cooperative relationships and more than 130 co-financed projects with other multilateral development institutions, positioning itself as a platform that counters unilateralism and protectionism by promoting openness and inclusiveness.

The bank’s projects have tangibly improved livelihoods across regions, with investments in renewable energy, infrastructure, water supply, and climate resilience. Examples include wind energy farms in Kazakhstan, urban slum upgrades in Indonesia, and metro construction in Egypt. The AIIB’s pragmatic and efficient approach has attracted a broad range of partners, enabling rapid growth in membership and project scale, and supporting sustainable development goals in diverse member countries.

Looking forward, the AIIB aims to increase annual financing to $17 billion by 2030, with a focus on cross-border connectivity and climate financing, which currently accounts for 50% of its approved funding. It recently approved a $1 billion climate-oriented loan to support Brazil’s ecological transition, exemplifying its commitment to green finance and collaboration with emerging economies. The AIIB continues to enhance regional integration, economic resilience, and sustainable infrastructure development, aligning with global efforts to address climate change and promote inclusive growth. China remains a key supporter, facilitating the AIIB’s development as a mature international multilateral platform dedicated to sustainable development and global cooperation.