U.S.-China relations face structural hurdles amid trade and currency tensions

U.S.-China relations face significant structural challenges despite efforts at personalist diplomacy between leaders. Analysts suggest that high-stakes summits often struggle to overcome deep-seated systemic divides, such as competition over critical supply chains and differing bargaining styles.

In anticipation of a scheduled state visit by President Xi Jinping to Washington D.C., the Alliance for American Manufacturing has called for addressing China’s currency manipulation. The group argues that Beijing’s control over the yuan through exchange rate management and capital controls allows it to offset the impact of U.S. tariffs. Critics and economists suggest that by suppressing the value of the yuan, China provides its exporters with an artificial advantage in global markets, undermining American manufacturing efforts.