Trump Policies & People
An Overview of the Second Term
Overview

Background

Xi Jinping was born on June 15, 1953, in Beijing, into a politically influential family. His father, Xi Zhongxun, was a senior revolutionary leader who was often out of favor with the party and government, especially before and during the Cultural Revolution and after he openly criticized the government's actions during the 1989 Tiananmen Square incident. The father's political vulnerability shaped the son's early life in decisive ways. During the Cultural Revolution, with his father purged and out of favor, Xi Jinping was sent to the countryside in 1969. He worked from 1969 through 1975 as a manual laborer on an agricultural commune in the largely rural Shaanxi province, and he developed an especially good relationship with the local peasantry, which would aid the wellborn Xi's credibility in his eventual rise through the ranks of the CCP.

Xi studied chemical engineering at Tsinghua University and later earned a doctorate in Marxist theory and ideological education. Unlike many leaders who emerge from national prominence, Xi built his career from local administrative positions, steadily gaining experience at township, county, municipal, provincial, and eventually national levels. Xi began climbing the rungs of the CCP power structure in the late 1970s, and his tenure in the positions he held then was undistinguished. Rather than undertaking any significant initiatives, Xi's record suggests he laid low and focused on avoiding both scandal and offending any potential CCP power brokers. Xi Zhongxun's political resurrection following Mao's 1976 death helped pave the way for his son's entry into provincial leadership positions.

Xi has served as president of China since 2013 and as general secretary of the Chinese Communist Party since 2012. Xi consolidated power through a wide-ranging anti-corruption campaign, tighter control over the Chinese Communist Party, and the expansion of his influence over the military and state institutions. At the 2017 Party Congress, Xi's personal political philosophy — "Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era" — was entered into the party constitution alongside those of his predecessors; unlike his two previous predecessors, Xi is identified with his philosophy by name, placing him on a level with Mao and the revered reformist Deng Xiaoping. In 2018, the National People's Congress amended China's constitution to remove the previous limit of two consecutive five-year terms from the presidency, clearing the way for Xi's indefinite rule.

Public Role in the Second Trump Administration

The Trade War and Its Escalation

The fiercest competition between Presidents Donald Trump and Xi Jinping in 2025 seemed to involve who could stop U.S. imports from China the fastest. Trump started early and went big, launching his second trade war soon after taking office in January and raising tariffs on China by 145 percentage points by April. By June, U.S. imports from China were roughly half their levels of a year earlier, falling to depths not seen since the financial crisis of 2009. Xi responded by restricting Chinese exports.

Xi weaponized rare earth permanent magnets and certain semiconductors in 2025, with consequences that were severe for carmakers and workers worldwide who remain heavily dependent on China for such vital inputs. Twice in 2025, Xi nearly brought the U.S. automobile industry to a halt by cutting off companies' access to essential Chinese inputs, with nearly 6.5 percent of U.S. manufacturing workers employed in just-in-time automotive supply chains at risk of severe disruption.

Diplomacy and Partial Stabilization

Trump and Xi met in South Korea in October 2025 for the first time since Trump's second term began. Though there was no formal agreement, the two sides extended a trade truce reached in Geneva in May 2025 by another year. Trump agreed to lower tariffs previously used to pressure cooperation on combating the fentanyl crisis, while China committed to purchasing U.S. soybeans, after halting imports earlier that May, and also agreed to postpone by a year its proposed export controls on rare-earth minerals. The United States and China took further steps to defuse their trade war by the end of November 2025, reducing their tariff rates to 30 percent and 10 percent, respectively.

During a tumultuous 2025, the United States and China proved how much they could hurt each other in a trade war. By May 2026, Presidents Trump and Xi were meeting in Beijing to repair some of the damage. Experts assessed that complete decoupling of the world's two biggest economies remained unlikely, and that high tariffs, rare earth restrictions, and technology export controls remained major sticking points.

Security and Taiwan

Alongside the trade conflict, Xi continued a pattern of military signaling in the Taiwan Strait and broader Indo-Pacific. In April 2025, China conducted the Strait Thunder-2025A exercises across the Taiwan Strait, East China Sea, Philippine Sea, and surrounding waters, testing capabilities in regional control, joint blockade, and precision strike. The Pentagon's China Military Power Report, released in December 2025, concluded that despite extensive leadership purges and ongoing disciplinary investigations across China's military and defense industry, China continues to make progress toward Xi's 2027 "Centennial Military Building Goal" and associated warfighting capabilities against Taiwan.

A Philippine Navy report from early 2026 noted increased Chinese aggressiveness and force deployment in disputed South China Sea waters in 2024 and 2025, with China likely to continue these coercive activities as it seeks to consolidate sea and air control of the South China Sea and deny strategic positions to the Philippines, a U.S. treaty ally.

Recent Developments

China's military pressure on Taiwan remained generally stable in the first half of 2026, with no major escalation in military aircraft or naval vessel activity. Tensions ran lower than at the end of 2025, owing largely to the multiple opportunities for direct meetings that the U.S. and Chinese leaders arranged in 2026. During the mid-May 2026 summit between Xi and Trump, from May 13 to 17, daily sorties by Chinese military aircraft detected around Taiwan fell to an average of three, with zero sorties on May 14 and 15 — compared to a daily average of 7.5 sorties for the first half of 2026. The pattern underscores Xi's use of military activity as a calibrated diplomatic signal, capable of being turned up or down in coordination with high-level political engagement.

The U.S. Supreme Court's February 2026 ruling against many of Trump's 2025 tariffs forced the administration to recalibrate its entire trade strategy. In March 2026, the Trump administration announced new investigations into allegedly unfair trading practices by China and numerous other economies under Section 301 of the Trade Act of 1974. The May 2026 Trump-Xi summit in Beijing represented the most significant bilateral engagement of the second Trump term to date, though observers noted that the underlying structural tensions — over technology, supply chains, Taiwan, and military posture — remained unresolved.

Outlook

Xi enters the second half of 2026 having demonstrated that China can absorb significant economic pain while retaining leverage through control of rare earths, manufacturing inputs, and export channels. The Geneva truce and subsequent diplomatic contacts have stabilized the surface of the relationship, but the structural competition that defines it has not diminished. Xi's extreme ambitions include meeting the requirements of his Centennial Military Building Goal of 2027 — his capabilities development deadline for China's armed forces to achieve a full battery of military operational capabilities against Taiwan. How the Trump administration responds to that deadline, particularly given its simultaneous effort to negotiate trade arrangements with Beijing, remains one of the central unresolved tensions in U.S. foreign policy.

A decade of conflict between the world's two biggest economies has left U.S.-China trade greatly reduced from the boom times of the 2000s and 2010s, forcing companies to regroup. Many American firms have shifted production out of China to countries like Vietnam and India, while Chinese firms have scrambled to find new customers in Europe and Southeast Asia. But the two countries are finding that they still need each other. Whether Xi and Trump can convert tactical truces into durable arrangements — or whether the competitive logic of the relationship will reassert itself — will shape the international environment for the remainder of Trump's second term and well beyond.

Sources

Council on Foreign Relations, "The U.S.-China Trade Relationship: What's Behind the Competition?" (May 2026)

Peterson Institute for International Economics, "The Trump-China Trade Wars: Five Takeaways from US Imports in 2025" (May 2026)

PBS NewsHour, "U.S. and China Seek to Repair Damage from Tariff War" (May 2026)

White House, "Fact Sheet: President Donald J. Trump Strikes Deal on Economic and Trade Relations with China" (Nov. 2025)

The Diplomat, "China Moves to Lock in a New Edge on Taiwan Before the Next Trump-Xi Summit" (Jul. 2026)

American Enterprise Institute, "China and Taiwan Update, April 3, 2026" (Apr. 2026)

Andrew S. Erickson / War on the Rocks, "Latest Pentagon Report: China's Military Advancing Amid Churn" (Jan. 2026)

Encyclopaedia Britannica, "Xi Jinping" (Aug. 2026)

Further Reading

Further Reading and Listening

Trump, Xi, and the Case for Strategic Calm

Foreign Affairs, April 1, 2026

Brookings senior fellow and former NSC China director Ryan Hass traces how Trump shifted from 145-percent tariffs to conciliatory dealmaking with Xi across the second half of 2025, arguing the resulting equilibrium favors American interests if Washington avoids overreach. Essential reading for understanding how the Trump-Xi relationship actually evolved in practice.

What Happened When Trump Met Xi?

Brookings Institution, November 5, 2025

A panel of Brookings China scholars dissects the first Trump-Xi encounter of the second term — a roughly 100-minute Busan, South Korea session on the sidelines of APEC — assessing what was agreed, what was left unresolved, and what the meeting signals about each leader's negotiating posture going forward.

Beyond Trade: Issues in a Trump-Xi Summit

Brookings Institution, March 27, 2026

Part of Brookings's "Lost in Translation" series on Chinese strategic narratives, this essay unpacks what Beijing actually wants from summit diplomacy with Washington — including Xi's February 2026 call for "mutual respect, peaceful coexistence, and win-win cooperation" — and how the two sides' divergent interpretations of summit outcomes could generate friction during implementation.

What Are the Key Drivers of Xi's Economic Policy in 2025?

Brookings Institution, March 28, 2025

Brookings scholar Jonathan Czin argues Xi is deliberately prioritizing a long-term techno-industrial bet over short-term stimulus, choosing to let the property crisis run its course while doubling down on advanced manufacturing — and contends that China retains more capacity to endure a trade war than Trump's team may assume.

Assessing Xi's Unprecedented Purges of China's Military: Key Developments and Potential Implications

Center for Strategic and International Studies, February 24, 2026

Drawing on a new CSIS database of Chinese military purges, leading PLA experts including Bonny Lin and M. Taylor Fravel examine how Xi's removal of his top generals — including the military's highest-ranking officer in January 2026 — simultaneously disrupts near-term readiness and reshapes the PLA around absolute political loyalty to Xi.

A Perfect Storm for Taiwan in 2026?

Foreign Affairs, February 2, 2026

This analysis argues that Xi's calculus on Taiwan shifted materially in 2025 because China's policy community is increasingly convinced that Trump's evident indifference to defending the island represents a window of opportunity unlikely to reappear — making the intersection of Xi's ambitions and Trump's posture the central Taiwan-strait risk factor to monitor.

The Xi Doctrine Zeros in on "High-Quality Development" for China's Economic Future

Carnegie Endowment for International Peace, April 2026

Carnegie's analysis of China's newly approved Fifteenth Five-Year Plan (2026–2030) shows how Xi is cementing a shift from consumption-led to innovation-driven growth, a structural choice with direct implications for U.S. trade negotiators who seek to rebalance the bilateral economic relationship.

Trump and Xi Are Angling for Three Years of Stability

Carnegie Endowment for International Peace, June 2026

Carnegie's post-summit assessment of the May 2026 Beijing state visit examines both leaders' shared incentive to bank a durable, managed competition rather than escalation, while noting that their "principal-to-principal" model is only as strong as each leader's domestic political position.

How Southeast Asia Sees Xi Jinping's Regional Push Amid U.S.-China Tensions

Carnegie Endowment for International Peace, April 2025

A granular, country-by-country assessment of Xi's April 2025 Southeast Asia tour — timed to coincide with peak U.S. tariff pressure — showing how Beijing used trade agreements, infrastructure deals, and diplomatic signaling to build an alternative economic and political bloc around China during the early months of Trump's second term.

China 2026: What to Watch

Asia Society Policy Institute, Center for China Analysis, December 10, 2025

The Asia Society Policy Institute's flagship annual report, grounded in Chinese-language Party documents and official data, offers twelve strategic-question chapters — including an analysis of Xi's governing priorities for 2026 — that collectively portray a system defined by ambition and brittleness in equal measure, with U.S.-China competition deeply embedded in every area of Chinese policymaking.

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