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Supreme Court decision bolsters China’s negotiating position ahead of summit

Supreme Court decision bolsters China’s negotiating position ahead of summit

The geopolitical balance has shifted in Beijing’s favor ahead of the summit between Xi Jinping and Donald Trump scheduled for March 31, after a US Supreme Court decision effectively removed second‑term tariffs that had reached 145% on some goods and left China facing a standard 15% rate for 150 days.
The loss of that economic weapon makes it harder for Mr. Trump to secure commitments from China to purchase US soy and Boeing aircraft. Beijing, by contrast, plans to press for expanded access to advanced semiconductors after the US administration approved sales of NVIDIA H200 chips to Chinese firms. China’s dominance in rare‑earth elements provides an additional lever. If the United States tightens export controls, Beijing could restrict supplies of materials that are critical to high‑tech manufacturing in the United States.
The White House is simultaneously developing another plan to restore higher duties via Section 301, a move that has prompted a wave of preemptive shipments from China to the US market. Treasury Secretary Scott Bessent is preparing to meet Chinese officials. The focus of talks has shifted from averting a trade war to shaping a new investment architecture.

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