Trump wrote on Truth Social that the call was “productive” and he “appreciated” Xi’s approval of deal, which would reportedly see TikTok’s US business sold to a group of US investors.

China’s official state news agency Xinhua left the outcome of their discussion less clear, with Xi quoted as saying that Beijing “welcomes negotiations over TikTok”.

TikTok, which is run by Chinese firm ByteDance, was previously told it had to sell its US operations or risk being shut down.

Trump, however, delayed implementing the ban four times since it was first announced in January, and earlier this week extended the deadline again to December.

In his post, Trump wrote the two had “made progress” on trade issues and would meet at the Asia-Pacific Economic Cooperation (Apec) summit, scheduled to begin at the end of Octoberin South Korea, and said he would travel to China.

“I also agreed with President Xi that we would meet at the Apec Summit in South Korea, that I would go to China in the early part of next year,” Trump said, adding that Xi would travel to the US at “an appropriate time”.

Trump told reporters on Friday afternoon that a deal still had to be signed, and signalled there could be a formal process to do so soon.

“We look forward to getting that deal closed,” he said, adding that the US would have “very tight control” of the app.

That deal will reportedly see a group of US firms – said to include Oracle, which was co-founded by Trump ally Larry Ellison – that would enable TikTok to continue operating in the US, using algorithm technology licensed from ByteDance.

A sticking point in negotiations appears to be who will own the powerful algorithm that pushes content to TikTok’s 170 million American users.

Speaking alongside British Prime Minister Sir Keir Starmer in the UK on Thursday, Trump sidestepped a question from a reporter about whether an American buyer would need to build a new algorithm, or if they could continue to use the current algorithm.

Trump addedhe believes TikTok has “tremendous value” to the US.

“The people that are investing it are among the greatest investors in the world,” he said. “And they’ll do a great job – and we’re doing it in conjunction with China.”

Xinhua reported that China’s position on TikTok is “very clear” and that it welcomed firms to “conduct commercial negotiations based on market rules and reach solutions that comply with Chinese laws and regulations and a balance of interests”.

“We hope that the US will provide an open, fair and non-discriminatory business environment for Chinese companies to invest in the United States,” it added.

A statement by ByteDance on Friday cast further doubt on the status of a deal.

“ByteDance will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok US,” a ByteDance spokesperson said.

The spokesperson thanked both presidents for “their efforts to preserve TikTok in the United States”.

Many US lawmakers – including some from within Trump’s own party – have expressed unease with the prospect of a deal, citing ongoing concerns about ByteDance’s links with the Chinese Communist Party, or CCP.

“I am concerned the reported licensing deal may involve ongoing reliance by the new TikTok on a ByteDance algorithm that could allow continued CCP control or influence,” Michigan Republican representative John Moolenar, chair of the House Select Committee on the Chinese Communist Party, said in a statement.

While Trump initially called for TikTok to be banned during his first term, he has changed course, and on Thursday said he viewed the platform as a key part of his 2024 electoral campaign.

In January, the US Supreme Court upheld a law first passed in early 2024, banning the app unless ByteDance divested from its US operations. The app went “dark” only briefly at the time, before the ban was delayed.

The US Department of Justice previously expressed concerns that TikTok’s access to the data of US users posed a national security threat of “immense depth and scale”.

The call between Xi and Trump is the second so far this year.

In June, the two leaders spoke to discuss China’s export of rare earth minerals, resulting in China agreeing to approve a “certain number” of export permits to US companies, as well as the magnets made from them.

Chinese and US officials have held four rounds of talks in recent months, and so far held off on implementing extremely high tariffs and strict export controls.

The US has already imposed 20% tariffs on some Chinese goods it says are linked to fentanyl trafficking.

Other thorny issues – including tech export restrictions and Chinese purchases of US agricultural products – so far remain unresolved.

The charismatic and colourful Mr Ma, who was one of China’s most prominent businessmen, had withdrawn from public life after criticising China’s financial sector in 2020.

His reappearance at Monday’s event has sparked a wave of discussion, with experts and analysts wondering what it means for him, China’s tech sector and the economy in general.

The response has been overwhelmingly positive – tech stocks, including those of Alibaba, rallied soon after the event.

On Thursday, the e-commerce giant reported financial results that beat expectations, with shares ending the trading day in New York more than 8% higher. The company’s shares are up 60% since the beginning of the year.

So what are analysts reading into Mr Ma’s appearance at the event alongside other high-profile guests – including DeepSeek founder Liang Wenfeng?

Analysts began looking for clues about the significance of the meeting as soon as Chinese state media started releasing pictures of the event.

“Jack Ma’s attendance, his seating in the front row, even though he did not speak, and his handshake with Xi are clear signs he has been rehabilitated,” China analyst Bill Bishop wrote.

Social media was abuzz with users praising Mr Ma for his return to the public spotlight.

“Congratulations [Jack] Ma for the safe landing,” said one user on Chinese social media platform Weibo.

“The comeback of [Jack] Ma is a shot in the arm to the current Chinese economy,” said another.

It is unsurprising that observers have attached so much significance to an appearance by Mr Ma.

Before his disappearance from public life in 2020 – following comments at a financial conference that China’s state-owned banks had a “pawn-shop mentality” – Mr Ma was the poster boy for China’s tech industry.

An English teacher with no background in computing, Mr Ma co-founded Alibaba in his apartment more than two decades ago after convincing a group of friends to invest in his online marketplace.

He went on to build one of China’s largest tech conglomerates and become one of the country’s richest men.

That was before his “pawn shop” comment, when he also lamented the “lack of innovation” in the country’s banks.

It led to the cancellation of his $34.5bn (£27.4bn) stock market flotation of Ant Group, his financial technology giant.

This was seen at the time as an attempt by Beijing to humble a company that had become too powerful, and a leader who had become too outspoken.

Analysts agree that the fact he’s back in the spotlight, at a symposium where Xi Jinping himself presided, is a very good sign for Mr Ma.

Some caution, however, that the fact he was not among the speakers may show that he has not fully returned to the exalted status he once enjoyed.

Also, the lack of coverage his attendance received in Chinese media outlets seems to confirm he has not been completely rehabilitated.

Xi Jinping told participants at the symposium that their companies needed to innovate, grow and remain confident despite China’s economic challenges, which he described as “temporary” and “localised”.

He also said it was the “right time for private enterprises and private entrepreneurs to fully display their talents”.

This has been widely interpreted as the government telling private tech firms that they too are back in good graces.

Mr Ma’s downfall had preceded a broader crackdown on China’s tech industry.

Companies came to face much tighter enforcement of data security and competition rules, as well as state control over important digital assets.

Other companies across the private sector, ranging from education to real estate, also ended up being targeted in what came to be known as the “common prosperity” campaign.

The measures put in place by the common prosperity policies were seen by some as a way to rein in the billionaire owners of some of China’s biggest companies, to instead give customers and workers more of a say in how firms operate and distribute their earnings.

But as Beijing imposed tough new regulations, billions of dollars were wiped off the value of some of these companies – many of them tech firms – rattling international investors.

This, along with a worsening global economy that was affected by the pandemic as well as Russia’s invasion of Ukraine, has contributed to considerable changes in China’s economic situation.

Growth has slowed, jobs for the country’s youth have become more scarce and, amid a property sector downturn, people are not spending enough.

As rumours that Mr Ma would attend Monday’s meeting began to spread, so did a glimmer of hope. Richard Windsor, director of technology at research firm Counterpoint, said Mr Ma’s presence would be a sign that China’s leadership “had enough of stagnation and could be prepared to let the private sector have a much freer hand”.

Aside from Mr Ma and Mr Liang, the list of guests also included key figures from companies such as telecommunications and smartphone firm Huawei, electric-vehicle (EV) giant BYD, and many others from across the tech and industrial sectors.

“The [guest] list showcased the importance of internet/tech/AI/EV sectors given their representation of innovation and achievement,” said a note from market analysts at Citi.

“[It] likely indicates the importance of technology… and the contribution of private enterprises to the development and growth of China’s economy.”

Those present at the meeting seemed to share that sentiment. Lei Jun, the chief executive of consumer electronics giant Xiaomi, told state media that he senses the president’s “care and support” for businesses.

The symposium took place after the country experienced what some observers have described as a “Sputnik moment”: the arrival of DeepSeek’s disruptive R1 artificial intelligence (AI) model at the end of last month.

Soon after its release, the Chinese-made AI chatbot rose through the ranks to become one of the most downloaded in the world. It also triggered a sudden sell-off of major US tech stocks, as fears mounted over America’s leadership in the sector.

Back in China, the app’s global success has sparked a wave of national pride that has quickly spread to financial markets. Investment has been pouring into Chinese stocks – particularly those of tech companies – listed in Hong Kong and mainland China.

Investment banking giant Goldman Sachs has also upgraded its outlook for Chinese stocks, saying rapid AI adoption could boost companies’ revenues and attract as much as $200bn of investment.

But the biggest significance of this innovation was that it came as a result of DeepSeek having to innovate due to a ban on the export of advanced chips and technology to China.

Now, with Trump back in the White House and his fondness of trade tariffs, Mr Xi may have found it necessary to recalibrate his approach to China’s entrepreneurs.

Instead of a return to an era of unregulated growth, some analysts believe Monday’s meeting signalled an attempt to steer investors and businesses toward Mr Xi’s national priorities.

The Chinese president has been increasingly emphasising policies that the government has referred to as “high-quality development” and “new productive forces”.

Such ideas have been used to reflect a switch from what were previously fast drivers of growth, such as property and infrastructure investment, towards high-end industries such as semiconductors, clean energy and AI.

The goal is to achieve “socialist modernisation” by 2035 – higher living standards for everyone, and an economy driven by advanced manufacturing and less reliant on imports of foreign technology.

Mr Xi knows that to get there he will need the private sector fully on board.

“Rather than marking the end of tech sector scrutiny, [Jack Ma’s] reappearance suggests that Beijing is pivoting from crackdowns to controlled engagement,” an associate professor at the University of Technology Sydney, Marina Zhang told the BBC.

“While the private sector remains a critical pillar of China’s economic ambitions, it must align with national priorities – including self-reliance in key technologies and strategic industries.”

The landslide struck Jinping village in Sichuan province at 11:50 on Saturday (03:50 GMT) burying 10 houses and trapping several residents. Two people were rescued.

A command centre has been set up at the scene according to a statement by the county’s emergency management bureau.

China’s President Xi Jinping has ordered an “all-out” rescue of those trapped.

Images from state media show a huge collapse of mud and rock from a steep mountainside, cutting through what appears to be a small village.

Hundreds of emergency workers are searching for survivors, according to a statement from China’s Ministry of Emergency Management. Around 200 people have been evacuated.

President Xi has ordered authorities to do “everything possible to search and rescue missing people, minimise casualties and properly handle the aftermath”, according to the official Xinhua state news agency.

Chinese Premier Li Qiang additionally asked for an investigation into potential geological hazard risks in nearby areas.

According to local media reports, villagers have said large rocks had been frequently seen rolling down the mountain over the last six months.

Li also said residents who were under threat should be evacuated to prevent another disaster, the AP news agency reports, citing Xinhua.

Fifty million yuan ($6.9m; £5.5m) has been allocated from central government funds to repair infrastructure and public services, AP adds.

The remote, mountainous parts of China’s south-west can be prone to landslides.

In January 2024, a landslide in China’s Yunnan province killed dozens of people when a steep cliff collapsed and destroyed part of a village.

At least 18 people were killed in a separate landslide in the same region 11 years earlier.

After last-minute calls with Trump, Canadian Prime Minister Justin Trudeau agreed to reinforce his country’s border with the US to clamp down on migration and the flow of the deadly drug fentanyl.

Earlier, Trump made a deal with Mexican President Claudia Sheinbaum. She agreed to reinforce the northern border with troops. In return the US would limit the flow of guns into Mexico.

But a US tariff of 10% on Chinese imports has come into effect, after a deadline of 00:01 EST (05:00 GMT) on Tuesday passed.

Shortly after, Beijing announced it was imposing retaliatory tariffs on a raft of American products, including 15% on coal and liquefied natural gas and 10% on crude oil and agricultural machinery.

Trump earlier said he planned to speak on the phone to his Chinese counterpart soon. He described the 10% import taxes as the “opening salvo” and said they could become “very, very substantial” if no agreement is made.

Monday’s breakthrough with Canada and Mexico came as they prepared retaliatory tariffs on American goods.

After two phone calls on Monday, Trump and Trudeau posted on social media that they had reached a temporary agreement on securing the border that would avoid tariffs for at least 30 days.

Both leaders portrayed the plan as a win.

“As president, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome,” Trump wrote on his social media site Truth SocialTrudeau said Canada was implementing a $1.3bn (£1bn) border plan that included nearly 10,000 frontline workers and more resources to halt the flow of fentanyl, a synthetic drug 50 times stronger than heroin, which Trump has cited as a major concern.

The prime minister also said Canada would appoint a “fentanyl czar” and launch a joint strike force with the US to combat crime, fentanyl and money laundering.

Much of the border security plan had already been announced by Canada in December.

It includes enhanced co-ordination with US law enforcement, increased information sharing, limiting traffic at the border, and the deployment of drones and Black Hawk helicopters for surveillance.

The news came just hours after Trump paused a separate tariff on Mexican goods in exchange for that country sending 10,000 National Guard troops to its border with the US.

President Sheinbaum broke the news on X, writing she had had a “good conversation with great respect for our relationship and sovereignty” with her US counterpart.

Trump described his phone conversation with the Mexican leader as “very friendly”.

In 2019, Mexico’s government agreed to send 15,000 soldiers to its northern frontier to avoid tariffs from the first Trump administration.

Trump has framed tariffs as a tool for growing the US economy, protecting jobs and raising tax revenue.

“Tariffs for us, nobody can compete with us because we’re the pot of gold,” he said on Monday afternoon.

“But if we don’t keep winning and keep doing well, we won’t be the pot of gold.”

Economists, however, have warned that tit-for-tat tariffs could raise prices for a wide range of products, including cars, lumber, steel, food and alcohol.

Items had already been removed from some shelves, and stock markets lurched downwards on Monday before recovering slightly with the announcement that tariffs had been suspended.

Andrew Furey, premier of Newfoundland and Labrador, acknowledged that the 30 days had brought some relief, but warned Canadians that a trade war still loomed.

He told the BBC he looked forward to using “the calm Canadian diplomatic approach to try to resolve any future tariffs”, but cautioned against further “chaotic” actions from the US president.

“We’re left as Canadians feeling a bit confused by this attack from our closest friend, our largest trading partner, our ally, family,” Furey said.

The premier of Ontario – Canada’s most populous province, which makes up about 38% of the country’s GDP – welcomed the pause and said he would suspend plans for retaliatory measures.

Premier Doug Ford wrote on X: “Make no mistake, Canada and Ontario continue to stare down the threat of tariffs.

“Whether it’s tomorrow, in a month or a year from now… President Trump will continue to use the threat of tariffs to get what he wants.”

On Sunday, Trump indicated the 27-nation European Union would be his next target for tariffs, without providing further details.

The American president suggested that Britain, which left the EU in 2020, might be spared much duties.

It urged Washington to start talks after repeated warnings that there would be no winners in a trade war.

It held its fire until midnight in Washington – and then just as the tariffs on China kicked in, Beijing announced retaliatory tariffs of 10-15%, starting 10 February, on various US imports, including coal, crude oil and large cars.

The Chinese government may have remained calm in the hope of doing a deal with Washington to avoid further tariffs – and to keep the relationship between the world’s two largest economies from spiralling out of control.

After all, US President Donald Trump agreed to reprieves with Canada and Mexico just hours before the tariffs on them took effect. Trump and China’s President Xi Jinping are expected to talk this week.

The US levy will sting – especially because it adds to a slew of tariffs Trump imposed in his first term on tens of billions of dollars of Chinese imports. And China’s population is already concerned about their sluggish economy.

Beijing and Washington have gone toe-to-toe on tariffs before. But a lot has changed since Trump 1.0.

For one, the Chinese economy is not as reliant on the US as it was back in 2020. Beijing has strengthened its trade agreements across Africa, South America and South East Asia. It is now the largest trading partner of more than 120 countries.

A deal could still be in the offing but the additional 10% may not offer the leverage that Trump wants, says Chong Ja Ian from Carnegie China.

Xi’s ‘win-win’ as America retreats

President Xi Jinping may also see a bigger opportunity here.

Trump is sowing division in his own backyard, threatening to hit even the European Union (EU) with tariffs – all in his first month in office. His actions may have other US allies wondering what is in store for them.

In contrast, China will want to appear a calm, stable and perhaps more attractive global trade partner.

“Trump’s America-first policy will bring challenges and threats to almost all countries in the world,” says Yun Sun, director of the China programme at the Stimson Centre.

“From the perspective of US-China strategic competition, a deterioration of US leadership and credibility will benefit China. it is unlikely to turn well for China on the bilateral level, but Beijing surely will try to make lemonade…”

As a leader of the world’s second-largest economy, Xi has made no secret of his ambition for China to lead analternative world order.

Since the end of the Covid pandemic, he has travelled extensively, and he has supported major international institutions such as the World Bank and agreements such as the Paris climate accords.

Chinese state media have portrayed this as embracing countries across the world and deepening diplomatic ties.

Before that, when Trump halted US funding to the WHO in 2020, China pledged additional funds. Expectations are high that Beijing may step in to fill America’s shoes again, following Washington’s exit from the WHO.

The same applies for the aid freeze that is causing such chaos in countries and organisations that have long depended on US funding – China may wish to fill the gap, despite an economic downturn.

On his first day back in office, Trump froze all foreign assistance provided by the US, which is by far the world’s biggest aid donor. Hundreds of foreign aid programmes delivered by USAID ground to a halt. Some have since restarted, but aid contractors describe ongoing chaos as the future of the agency hangs in the balance.

Trump’s “America First” doctrine could further weaken Washington’s position as a global leader, says John Delury, a historian of modern China and Professor at Yonsei University in Seoul.

“The combination of tariffs on major trade partners and freezing of foreign assistance sends a message to the Global South and OECD alike that the US is not interested in international partnership, collaboration,” he tells the BBC.

“President Xi’s consistent message of ‘win-win’ globalisation takes on a whole new meaning as America retreats from the world.”

In its bid for global governance, Beijing has been looking for a chance to upend the the American-led world order of the last 50 years – and the uncertainty of Trump’s presidency may well be it.

New alliances

“Whether it really confers Beijing a key advantage – of that I’m a little less sure,” Mr Chong says.

“Many US allies and partners, especially in the Pacific, have a reason to work with Beijing, but they also have reasons to be wary. That’s why we’ve seen Japan, South Korea, the Philippines and Australia move closer together, in part because of the apprehensions they harbour towards China.”

There is “gathering momentum” for a possible trilateral relationship among Australia, Japan and South Korea, motivated by “the impact of a second Trump administration”, according to The Australian Institute of International Affairs.

All three are concerned about China’s assertiveness in the South China Sea, along with the Philippines. They are also worried about a possible war over the self-governed island of Taiwan – Beijing sees it as a breakaway province that will, eventually, be part of the country, and has not ruled out the use of force to achieve this.

Taiwan has long been one of the most contentious issues in US-China relations, with Beijing condemning any perceived support from Washington for Taipei.

But it may be difficult for Washington to hit back at signs of Chinese aggression when Trump repeatedly threatens to annex Canada or buy Greenland.

Most countries in the region have used a military alliance with Washington to balance their economic relationship with China.

But now, wary of Beijing and unsure of the US, they could create new Asian alliances, with neither of the world’s biggest powers.

Calm before the storm

Trump announced the US tariffs on the weekend, as Chinese families were celebrating the New Year and inviting the God of Fortune into their homes.

Bright red lanterns currently swing over empty Beijing streets as most workers have left for their hometowns during the biggest holiday of the year.

At first, China’s only response had been that it would take legal action and use the World Trade Organisation to air its grievances.

But this poses little threat to Washington. The WTO’s dispute settlement system has been effectively shut down since 2019 when Donald Trump – in his first term then – blocked the appointment of judges to handle appeals.

Then China announced retaliatory tariffs. As the holiday draws to a close and party officials return to Beijing and to work, they have decisions to make.

Officials had been encouraged in recent weeks by signs that the Trump administration may want to keep the relationship stable especially after the two leaders had what Trump called “a great phone call” last month.

But that is going to get harder, as both Republicans and Democrats increasingly view China as America’s biggest foreign policy and economic threat.

“Mr Trump’s unpredictability, his impulsiveness and recklessness will inevitably lead to significant shocks in the bilateral relationship,” says Wu Xinbo, professor and director at the Centre for American Studies at Fudan University.

“Additionally, his team contains quite a few hawks, even extreme hawks on China. It is unavoidable that the bilateral relationship will face serious disruption over the next four years.”

China is certainly concerned about its relationship with the US and the harm a trade war could do to its slowing economy.

But it will also be looking for ways to use the current political pendulum to swing the international community its way and within its sphere of influence.

Trump said discussions with his administration were “based on the fact that they’re sending fentanyl to Mexico and Canada”.

He called China an “abuser”. China responded saying trade wars have “no winners”.

Despite the aggressive talk, the 10% tariff would be much less than the 60% tariff Trump mentioned on the campaign trail.

Trump’s comments followed his threats to levy import taxes of 25% on Mexico and Canada, accusing them of allowing undocumented migrants and drugs to come into the US.

In a press conference in Washington on Tuesday, Trump also vowed to hit the European Union with tariffs.

He said the EU “treat us very, very badly”.

“So they’re going to be in for tariffs. It’s the only way you’re going to get back. It’s the only way you’re going to get fairness.”

China’s foreign ministry spokeswoman Mao Ning responded to Trump’s threats by promising to “safeguard its national interests”.

“We have always believed that trade wars and tariff wars have no winners,” she added.

Shortly after he was sworn in on Monday, the new president also instructed federal agencies to conduct a review of existing trade deals and identify unfair practices by US trading partners.

Meanwhile, a top Chinese official spoke out against protectionism at the World Economic Forum in Davos.

China’s Vice Premier, Ding Xuexiang, called for a “win-win” solution to trade disputes without mentioning the US.

The Canadian Prime Minister Justin Trudeau has promised to fight back.

“If the [US] president does choose to proceed with tariffs, Canada will respond – and everything is on the table,” Trudeau said.

Ottawa is preparing counter-tariffs in response to the threat, reportedly worth billions of dollars.

Canada, China and Mexico are the top US trading partners.

Tariffs are an important part of Trump’s economic plans. The president believes they can boost growth, protect jobs and raise tax revenue.

But many economists say such measures could lead to higher prices for Americans and harm companies hit by foreign retaliation.

On Thursday, Trump’s incoming press secretary, Karoline Leavitt, confirmed reports of the invitation in an appearance on the conservative TV channel Fox News. She framed the invitation as an effort to strengthen ties between the two countries, long seen as rivals.

“This is an example of President Trump creating an open dialogue with leaders of countries that are not just our allies but our adversaries and our competitors, too,” Leavitt told the programme Fox & Friends.

Experts say that it would be unprecedented for a Chinese leader to attend a US presidential inauguration, given the frosty relations that have persisted between the two countries for decades.

“This is diplomatic theater, nothing more. Other heads of state, let alone Xi Jinping, haven’t attended US presidential inaugurations,” Scott Kennedy, a China specialist at Washington’s Center for Strategic and International Studies, told the news agency Reuters.

 Experts say Xi is unlikely to accept the invitation. When asked at a briefing about Trump’s invitation, Chinese Foreign Ministry spokesperson Mao Ning responded: “I have nothing to share at present.”

But the symbolism behind his appearance at Trump’s second inauguration would likely be fraught.

Danny Russel, vice president for international security and diplomacy at the Asia Society Policy Institute, told The Associated Press that Xi’s attendance – if he accepts – could be construed as the Chinese president “celebrating the triumph of a foreign leader”.

“Can you imagine Xi Jinping sitting outdoors in Washington, DC, in January at the feet of the podium, surrounded by hawkish members of Congress, gazing up at Donald Trump as he delivers his inaugural address?” asked Russel.

Xi and Trump have also butted heads in the past. During Trump’s first term, from 2017 to 2021, he initiated a trade war with China that saw the two countries impose tariffs on each other’s imports.

In 2019, the United Nations Trade and Development organisation issued a report warning that the trade war was “economically hurting both countries”. Experts have also warned that the cost of tariffs is often offset onto consumers.

Trump also exchanged a war of words with Xi’s government during the COVID-19 pandemic, which he called the “China virus”. He demanded China be held accountable for its spread. China, for its part, condemned Trump’s accusations as “baseless” and called his rhetoric stigmatising.

A second Trump term may spark further tensions with China. Already, he has pledged to impose an additional 10 percent tariff on Chinese goods if more is not done to curb the trade of the synthetic drug fentanyl.

And his incoming administration is stacked with several notable foreign policy hawks, including Secretary of State nominee Marco Rubio, who has accused China of deploying “theft” and “predatory tactics” to strengthen its economy. China sanctioned Rubio in 2020.

The current administration of US President Joe Biden has also left some tariffs from Trump’s first term largely in place and taken aggressive steps meant to hobble China’s tech sector.

But this week, there was evidence the US could seek to increase cooperation with China moving forward.

The Biden administration announced a delegation of senior Treasury Department officials would travel to Nanjing, China, while other officials would coordinate with their Chinese counterparts at a meeting for the Group of 20 (G20) forum in South Africa.

Trump too has signalled a willingness to warm relations. Speaking from the floor of the New York Stock Exchange on Thursday, Trump also said his incoming administration would engage in “a lot of talks with China”.

“We have a good relationship with China. I have a surprising relationship. Now, when the COVID came in, I sort of cut it off. That was a step too far,” he said.

Some are hopeful that the two global powers will find room for collaboration where possible.

“We should choose dialogue over confrontation and win-win cooperation over zero-sum games,” Xi said in the letter read aloud at a US-China Business Council gala in Washington, DC, on Wednesday.