President Trump meets Xi Jinping this week facing a China that has grown harder to isolate, as confidence in Washington has fallen sharply among longtime U.S. allies. Beijing has built its own leverage through rare earths, while Taiwan, trade and Iran will test how each side turns its relationships into pressure at the summit.
Trump begins meetings with Xi on Wednesday, with the main summit set for Thursday, after years of tariffs and technology restrictions aimed at squeezing China. But the two-day meeting comes as allies grow more reluctant to line up behind Washington against Beijing, complicating Trump's ability to press China from a position of collective strength.
Allied confidence has fallen
Part of the shift traces to Beijing's own moves. China's global trade surplus is on pace to top $1 trillion for a second straight year, after reaching a record $1.2 trillion in 2025 even as its exports to the U.S. dropped.
But strains with U.S. allies over tariffs, defense spending and personal disputes have also widened the opening. In Canada, the share of people calling the U.S. a reliable partner fell from 83% in 2022 to 35% this year, according to Pew Research Center. In Germany, the share who said Washington considers other countries' interests fell from 60% in 2023 to 23%.
Ryan Hass, director of the John L. Thornton China Center at the Brookings Institution, said the U.S. retains unmatched power on the world stage, but according to CNBC: "leverage requires a united front", and fewer countries are willing to follow America's lead right now.
Rare earths give Beijing new leverage
China placed seven rare-earth elements under export controls last year, and it accounted for more than 70% of global rare-earth mining and more than 87% of refining and production in 2024, according to the U.S. Geological Survey. Ford halted Explorer production in Chicago for a week amid magnet shortages after the curbs took hold.
Trump still holds cards of his own. U.S. and allied firms control key parts of the advanced semiconductor supply chain, and Washington has allowed limited sales of Nvidia's H200 AI chips to China even as broader restrictions on the most sophisticated chips and manufacturing equipment remain in place.
Taiwan and Iran test the summit
A $14 billion U.S. arms package for Taiwan has been awaiting Trump's approval for months, after he described it as a useful negotiating tool following his May meeting with Xi in Beijing. U.S. allies in Asia worry Trump could soften Washington's position on Taiwan in exchange for economic concessions.
Iran tests the opposite dynamic: whether Beijing can turn ties Washington lacks into diplomatic influence. China has preserved economic and diplomatic links with Tehran and frequently bought Iranian oil, and Xi has offered to help mediate the conflict, though the current U.S.-China trade truce expires Nov. 10.
Source: CNBC
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