US-China leaders’ meeting saw bargaining for global influence but have India, Japan and Russia in stiff competition
The meeting between US President Donald Trump and President Xi Jinping seems to be yet another strategic move in the global power play. While the two leaders have taken tentative, incremental steps toward each other, significant concessions remain unlikely, according to Yekaterina Novikova, Associate Professor of the Department of Economic Theory at the Plekhanov Russian University of Economics.
This encounter functions as a bargaining chip between the world’s two leading economies, each vying for influence in global markets. Although some minor agreements suggest a willingness to engage, neither side is prepared to make substantial sacrifices.
The world is gradually shifting toward regionalization of the global economy, with power becoming more localizedand multipolar. Countries like India, Japan and Russia cannot be dictated and will have their own independent influence on global economy, especially India the emerging giant.
Yekaterina speculated that the discussions may have touched upon dividing the African market, but the details and outcomes of any agreements are likely to surface much later. Data for 2024 indicates Chinese investments in Africa have reached $29.2 billion – up 34% from the previous year – including major projects in construction, energy, mining, technology, and transportation.
In comparison, US investments in Africa last year totaled $105 billion, substantially surpassing Chinese investments, primarily driven by resource extraction, especially rare metals, and the development of financial centers. India and Russia too are major investors and influencer in Africa and Indian clout is increasing day by day.
Novikova highlighted that the US has recently increased its focus on Africa, outpacing both China and regional players like Russia. Similar trends are observable in South Asia and ASEAN countries but USA is facing very stiff Competition from India. Infact in South Asia, USA has to be very careful that it does not offend India in anyway, USA just cannot afford it.
Regarding the Xi-Trump meeting, the discussions in Busan, South Korea, concluded after approximately an hour and 40 minutes. China Central Television reported the meeting but provided few details. Xi Jinping emphasized the importance of developing bilateral relations and indicated that negotiators had reached a basic consensus on resolving key trade and economic issues. Trump expressed optimism about the potential success of the talks.
This encounter follows a previous meeting between Trump and Xi in 2019 at the G20 summit in Osaka, underscoring the ongoing strategic dialogue between the two nations.
Trump is also trying very hard to have a similar meeting with PM Modi but it appears that Modi – Putin meet will take place first.
