00:00Steve, of course, the bromance continues in front of the cameras, but there are really big, complex issues that need
00:07to be worked out.
00:10Yeah, that's what's going to be discussed right now behind closed doors.
00:14They did say all the right things.
00:16I mean, you just heard a little bit of a recap there, but Xi Jinping saying we should be partners,
00:21not rivals.
00:22That's a very poignant comment coming after this last year of the tariff barrage from the Trump administration.
00:27The Trump administration launched just about, what, 11 months ago, and it was brutal.
00:32There was a lot of retaliation.
00:34There were tariffs imposed on Chinese goods upwards of 145 percent.
00:38There was backsliding.
00:39There was retaliatory strikes.
00:41There was threats.
00:42There was some ill will, no doubt, and that added to the distrust between the two sides.
00:47But Donald Trump has always talked about the best interpersonal relationship that he has with Xi Jinping,
00:53that that could, you know, help overcome some of the differences that were sort of caused by the Trump administration's,
01:01you know, attack, if you will, on Chinese products.
01:05Because as we heard Bonnie Glaser earlier talk about, Donald Trump last year has been really focused on eliminating or
01:14at least reducing that trade surplus,
01:16the massive trade surplus that China has with the United States.
01:19And he is obviously a large fan of the tariff approach, which has been, in a large part, been shot
01:26down, not only by the Supreme Court, but other courts.
01:29So is it going to be back to the drawing board on the tariff front and some of the punitive
01:34efforts that Donald Trump might employ to get to his end result, and that is fair trade?
01:42Or is it going to be more interpersonal relationships, building that partnership and having trust between the two of them?
01:49Keep in mind, they're going to have opportunities to meet on multiple occasions this year, with the United States hosting
01:55G20, China hosting APEC.
01:59So there are perhaps another three opportunities for these two leaders to meet over the course of this year.
02:04Definitely, their cabinet members and their heads of ministries will have a chance to meet, including their trade representatives,
02:11whether it's He Liefeng, who is leading kind of the Chinese front.
02:15You see He Liefeng there in the Chinese delegation.
02:18And also, of course, Scott Besant, the Treasury Secretary, who is also here in China, and the U.S. trade
02:26representative, Jameson Greer.
02:28Now, for his response to some of those kind words that Xi Jinping told Donald Trump, Trump said,
02:37we got along when there were differences.
02:40We're going to have a fantastic future together.
02:42And he said, I'm honored to be your friend.
02:46So saying the right things, now you get down to the hard issues and discussing what will likely be at
02:52the backdrop, the war in Iran.
02:54They're likely to talk about Taiwan, but they probably want to emphasize the more low-hanging fruit and the deliverables
03:00on trade and commercial ties.
03:05The tone from Trump is likely different this time around compared to the last time they met.
03:10I mean, how much of it has to do with the fact that Trump actually needs Xi Jinping's help on
03:15multiple fronts?
03:19Well, sure.
03:20You get a lot more results with kind words than with acrimony.
03:25And he's not going to come to China necessarily before the cameras and berate China for its trade policies.
03:32He is going to, with his whole team, and he brought just about all the key members of his cabinet,
03:38They're going to hammer home the emphasis that they want to on Iran to find out if or how allegedly
03:48China is supporting Tehran,
03:52either economically, obviously with the purchases of oil, but also militarily.
03:57China has denied that, obviously.
04:00There's going to be some sharp words, I'm sure, on Taiwan.
04:03But then again, at the end of today and the end of tomorrow, we're likely most going to be talking
04:08about if and how far those commercial deals are going to be struck.
04:14Is there going to be a big Boeing aircraft order from China?
04:18Is the H-200 advanced AI accelerator going to be purchased by China and allowed the large language models here
04:27in China, allowed to buy those?
04:30That, you know, Donald Trump's administration has already relaxed the export license criteria for the H-200, the H-20,
04:38and others.
04:38That could be a very significant move for the whole AI movement, if you will.
04:44The stock market has already reflected that kind of optimism.
04:47And Dan Ives, among others, of Wedbush, he says when you have the key architect of the AI hardware stack,
04:54if you will, on that geopolitical state visit along with Donald Trump, interesting things could potentially happen.
05:01He's talking, of course, about NVIDIA chairman Jensen Huang.
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