Tim Cook, Elon Musk And Jensen Huang Are On The Plane. Iran’s 14-Point Counter-Proposal Is On The Table. And The First US Presidential Visit To China In Nearly A Decade Is About Far More Than Trade.
This article was compiled and made possible with the help of the following source(s): CNN, Al Jazeera, EuroNews and CNBC.
US President Donald Trump is on his way to Beijing to meet Chinese President Xi Jinping, saying he will have a “long talk” about Iran but that trade will be the main focus.
The timing could not be more charged. Some aides to Trump said he is now more seriously considering resuming combat operations in Iran, after describing the ceasefire as being on “massive life support” on Monday. Meanwhile, the US war against Iran has cost $29 billion so far, higher than the $25 billion figure the Pentagon provided to Congress two weeks ago.
This is the first time a sitting US president has travelled to China in almost a decade. Among those making the trip alongside Trump are Apple CEO Tim Cook, Tesla CEO Elon Musk and Nvidia chief Jensen Huang.
Experts anticipate Trump and Xi may announce a Chinese purchase of US soybeans or other agricultural products that Beijing boycotted during the trade war. China could also soon place an order for a “big number” of Boeing aircraft, breaking a yearslong drought for the manufacturer.
But the economic backdrop is severe. US inflation surged to 3.8 percent in April, its highest in three years, as the Iran war drove energy prices up nearly 18 percent and pushed the national gas average to $4.50 a gallon.
China is Iran’s largest trade partner and the top buyer of its oil. Beijing has weathered the Hormuz disruption surprisingly well due to its gigantic reserves and overland pipeline network, giving Xi a degree of leverage that Trump does not have.
Israel, meanwhile, is concerned that Trump may strike an agreement with Iran before addressing key issues including its nuclear programme, ballistic missile development and support for regional proxies. Sources told CNN that Israel understands the missiles and proxies are “probably off the table” in early diplomatic drafts.
The most powerful man in the world just boarded a plane. The world is watching where it lands. Like this news surrounding current geopolitics? Read our previous article here.
