Press TV – September 30, 2026 

US Treasury Secretary Scott Bessent’s prediction that Iran’s economy would soon collapse underscores the depth of delusion within the current American leadership.

“Iran is absolutely not sanctionable,” Deputy Economy Minister Mortaza Zamanian said this week as Tehran worked to keep trade flowing despite Washington’s latest sanctions campaign.

Zamanian cited Iran’s extensive borders, established commercial routes and longstanding trading relationships, saying that they make it impossible for external pressure simply to switch off the country’s economy.

His remarks came as Washington intensified its economic terrorism against Iranian oil, shipping, aviation, finance, technology and foreign companies supporting those sectors.

US Treasury Secretary Scott Bessent said that Iran would probably make its final oil deliveries to China within two weeks, after which, he asserted, “they will have nothing.”

That prediction deserves comparison with history, because American administrations have imposed increasingly severe sanctions since 1979 while repeatedly expecting economic pressure eventually to produce decisive Iranian economic collapse.

The economy did not disappear under those campaigns; instead, Iran developed domestic industries, expanded regional commerce, strengthened Asian trade and accumulated extensive experience operating outside Western financial systems.

The proposition that an economy which has absorbed American sanctions for almost half a century will suddenly become economically empty within two weeks therefore indicates the depth of delusion among the current US leadership.

Iran enters the current confrontation with a large domestic market, substantial productive capacity, enormous energy resources and deeply established commercial relationships extending across neighboring countries and wider Eurasian markets.

The World Bank describes Iran as relatively diversified for an oil-exporting economy, with substantial manufacturing, agricultural and service activity supported by a large population and significant domestic consumption.

That domestic market sustains production across food, pharmaceuticals, construction materials, steel, petrochemicals, machinery and consumer goods, meaning Iranian production does not depend entirely upon continuous access to Western consumers.

Iran has also developed major industrial capabilities suited to its own resources and infrastructure, including steel, refining, petrochemicals, cement, power generation, construction, food processing and pharmaceutical manufacturing.

These capabilities have continued developing despite restrictions on Western investment and technology, demonstrating that Iranian industrial activity does not depend upon permanent participation by Western companies.

Iran’s prolonged exposure to sanctions has produced accumulated technical and commercial knowledge, giving Iranian companies decades of experience managing restricted supply chains and unreliable access to foreign suppliers.

When foreign manufacturers withdraw, Iranian companies have learned to redesign equipment, substitute components, develop domestic suppliers and cooperate with businesses from countries willing to maintain commercial relationships.

Academic research has documented this process, showing that sanctions can simultaneously restrict foreign technology while encouraging domestic technological development and adaptation within affected Iranian industrial sectors.

The resulting knowledge extends beyond individual companies, because engineers, technicians, procurement specialists and managers have accumulated practical experience managing shortages, substitution and alternative sourcing.

Iranian manufacturers therefore do not design procurement systems around the assumption that every international supplier will remain available indefinitely, making adaptation part of ordinary commercial planning.

Iran’s geography provides another economic advantage, because the country borders Turkey, Iraq, Armenia, Azerbaijan, Turkmenistan, Afghanistan and Pakistan while possessing coastlines reaching the Persian Gulf and the Sea of Oman.

Those borders connect Iranian commerce with the Caucasus, Central Asia, South Asia, the Persian Gulf, Turkey and Iraq, while transportation corridors also connect Iran with Russia and wider Eurasian markets.

Financial sanctions can make transactions more difficult, but they cannot physically relocate Iran or eliminate its access to neighboring markets, suppliers, transportation routes and established regional trading relationships.

Iran has consequently developed commercial links involving Iraq, Turkey, the United Arab Emirates, Afghanistan, Pakistan, the Caucasus, Central Asia and China through years of sustained economic interaction.

The World Bank has documented Iran’s increasing trade orientation toward neighboring countries and China as sanctions restricted conventional international relationships, making this regional pivot an established economic feature.

China adds another dimension because it combines enormous industrial capacity with sustained demand for Iranian energy while supplying machinery, manufactured products and industrial inputs required throughout Iran’s domestic economy.

The US-China Economic and Security Review Commission identifies China as Iran’s largest trading partner and estimates that China imported approximately 1.4 million barrels of Iranian crude daily during 2025.

Chinese independent refiners have continued purchasing Iranian crude through commercial arrangements designed to reduce their exposure to American financial restrictions and sanctions enforcement.

That relationship demonstrates why Iran does not require unrestricted access to every Western market when Chinese demand and extensive regional commerce provide alternative markets for Iranian commodities.

Iran’s energy resources provide enormous economic depth, with the World Bank ranking the country second globally in proven natural-gas reserves and fourth globally in proven crude-oil reserves.

Those resources provide export potential while also supplying abundant domestic energy and petrochemical feedstocks supporting manufacturing, electricity generation, transportation and numerous energy-intensive industrial activities.

Iran has consequently developed a substantial downstream economy converting hydrocarbons into refined products, petrochemicals and industrial inputs rather than depending exclusively upon crude-oil exports.

The World Bank has noted that sanctions encouraged additional processing of hydrocarbons into petrochemicals, illustrating how restrictions contributed to changes within Iran’s export structure.

Iran has also developed financial mechanisms outside conventional Western banking, including bilateral currency arrangements, exchange houses, barter, intermediary companies and indirect settlement channels supporting international commercial activity.

The World Bank has documented growing use of bilateral currency exchange, barter and indirect payment mechanisms as Iranian trade shifted increasingly toward neighboring countries and China.

These arrangements provide alternative methods for exchanging value when conventional dollar-based transactions become unavailable or prohibitively difficult.

Their existence helps explain why Washington increasingly targets third-country banks, intermediaries and commercial facilitators, because Iranian commerce extends through extensive international networks beyond domestic financial institutions.

Against this background, Bessent’s prediction assumes that eliminating a major source of oil revenue would effectively remove the broader economic foundations supporting Iran’s productive system and commercial institutions.

Iran’s economic structure is considerably broader, because oil exports represent one component of national activity alongside manufacturing, agriculture, services, domestic consumption and regional commerce.

The World Bank estimates that Iran’s economy contracted during the Iranian year ending March 2026, while simultaneously describing adaptation through changing trade patterns and alternative payment mechanisms.

Economic contraction, however, is fundamentally different from the disappearance of productive capacity, infrastructure, commercial institutions and domestic relationships sustaining millions of Iranian consumers and businesses.

American sanctions have repeatedly targeted Iranian banking, oil exports, investment, technology, shipping and foreign companies, yet Iran has retained its industrial base and redirected substantial trade toward neighboring countries.

Washington possesses powerful financial tools, but financial restrictions cannot physically eliminate Iran’s factories, oilfields, farms, engineers, consumers, ports, borders or commercial relationships accumulated over decades.

The central question is therefore whether American pressure can erase the productive, geographical, resource and commercial foundations Iran has accumulated across nearly half a century of economic adaptation.

Nothing in Iran’s economic history demonstrates that those foundations can disappear within two weeks, particularly while the country retains domestic production, regional markets, energy resources and established commercial relationships.

Iran therefore enters the present confrontation with domestic capabilities, energy resources, industrial capacity, geographic advantages and international relationships capable of keeping its economy operating despite intensified American terrorism.

Recent warnings from American AI leaders have created the impression that the world is only beginning to confront the dangers of advanced artificial intelligence. Dario Amodei, chief executive of tech company Anthropic, has called for governments to intervene to slow the development of increasingly powerful AI models. His proposal begins with independent evaluators embedded inside […]

The post As US tech leaders call for rules on AI, China already has them appeared first on Asia Times.

They’ve been shown to raise electricity bills, pollute drinking water, do little to boost local employment while threatening millions of jobs in a variety of industries, and top executives have warned that the technology they support could wipe out all of humanity by the end of the decade. But rather than take widespread public opposition to artificial intelligence data centers at face value, House Speaker Mike Johnson (R-La.) announced he had […]

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A merchant named Robert Keyne showed up crestfallen before the General Court of Massachusetts in Puritan Boston in 1639. His offense: trying to sell at the highest possible price and buy at the lowest possible price, putting his profits above the interests of the community. The judges showed no mercy: they fined him £200 for a practice they described as “extremely wicked and corrupt” and for having embraced “false principles.” Yet those are the same principles that now seem completely natural to us and structure our entire lives.

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Beijing may let its technology giants buy more Nvidia high-end chips, giving the US chip designer a fresh foothold in China and keeping Chinese artificial intelligence (AI) developers tied to its software after months of stalled trade. China’s Ministry of Industry and Information Technology (MIIT) has asked major domestic companies, including ByteDance, Alibaba and Tencent, […]

The post After Trump-Xi summit, Nvidia RTX PRO 5500 gains export prospects appeared first on Asia Times.

The MEPs steering the EU’s key industrial law want “Made in Europe” to mean that goods are actually produced in the EU.

Their draft report on the Industrial Accelerator Act (IAA), presented to three parliament committees on Monday (28 September), would reserve the label, and the subsidies and public contracts that come with it, for goods produced in the 27 member states.

Partner countries such as Japan or Korea could be added later, but only if they meet set criteria.

This is a break with the EU commission’s proposal, which would apply to virtually every country with a free-trade or procurement deal with the EU. 

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

Vladimir Putin is in trouble. The war in Ukraine is not going well for him; casualties are mounting at an alarming rate; discontent in Russian society is growing amid serious economic hardships; and the Kremlin’s inner circle is becoming increasingly perplexed by their leader’s ineffectiveness. His response, for now, is the same as always: escalation. Against Ukraine, with more missiles; against his own citizens, with more repression; and against the EU, with attacks, threats, and provocations of various kinds — sabotage, cyberattacks, incursions — that are becoming increasingly bold and dangerous.

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Commercial integration between Mexico and the United States, under the protection of the USMCA trade agreement, will first have to navigate a complicated customs issue: China. On the eve of the fourth round of talks, scheduled in theory for October, the economic rules that the Mexican government will impose on Chinese goods, investment and technology are of particular interest to the White House.

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President Donald Trump rolled out the red carpet for Chinese President Xi Jinping’s state visit to Washington, greeting him in person at Joint Base Andrews, a rare gesture for an American president. Critics in both parties warned that the pageantry would reward a rival. However, the red carpet, the state dinner with its exquisite menu, […]

The post Trump-Xi summit bade farewell to ‘China plus one’ appeared first on Asia Times.

By Prof. Glenn Diesen | September 26, 2026

The following are excerpts from my speech in Istanbul on September 26, 2026.

The unipolar world order has collapsed, and we should conduct a post-mortem to reflect on what went wrong and to understand the current turbulent transition of the world. In 1989, Francis Fukuyama famously published his article on the ‘End of History,’ which was largely adopted as an ideological guide by the political West. The world only had one superpower and one ideology, and the expectation was that the world would unify under US leadership and liberal democratic values. The dominance of the US would end international anarchy and security competition, as there was only one centre of power, and the US hegemon would elevate the role of liberal democracy to form an inclusive community of universal values. For more than three decades, the West produced a new generation of politicians who believed that the collective hegemony of the West was for the benefit of all mankind, and they were the administrators who would manage the transition from the chaotic world of the past to perpetual peace. So what went wrong?

The Contradiction of Hegemonic Universalism

The unipolar moment was always destined to be a temporary phenomenon, as the US would predictably exhaust its resources and incentivise rising powers to collectively balance the US. However, there is also an inherent contradiction in hegemonic universalism, as universal values are linked to one entity of power. A hegemon claims to represent universal values such as freedom, democracy, and human rights, albeit this universalism is promoted through a particular historical, cultural, and geopolitical order.

Universal values advocating for equality are used to institutionalise a dominant position for the US. Universal values advocating for inclusion are used to build exclusive blocs such as NATO rather than developing an inclusive pan-European security architecture. John Herz noted as early as 1950 that the more democratic states were at home, the more they seemed to insist on a dominant position in international institutions to defend liberal values from the rule of the majority. Liberal values build on the idea that tolerance is imperative, as all people and states have different ideas about the good life and their own path to development, yet the universality of values suggests that all states must develop along the same path, and the political West, as the champion of liberal democracy, is the civilizational teacher seeking to “socialize” the rest of the world. Liberalism has subsequently been promoted as a hegemonic norm.

The Revisionism of Hegemonic Universalism

The modern world order was established with the Peace of Westphalia in 1648, in which a hegemonic system legitimised with universalist claims was replaced with a multipolar system based on the cultural distinctiveness of states. The past 80 years have been a historical anomaly, with a bipolar system that collapsed and gave way to a unipolar system with one centre of power. The normal situation of the world has been a multipolar Westphalian system with a power equilibrium.

Over the past decades, hegemonic universalism transformed European states as national competencies were transferred to the US. US military dominance meant that Europe largely outsourced its security and foreign policy to the US within the format of the alliance system. US economic dominance meant that the international economic architecture, with banks, currencies, payment systems, and trade agreements, was largely administered by the US. Civil society in Europe and beyond has been managed by “non-governmental organizations” financed by the US government and cooperating closely with US intelligence services. The European political system is premised on the idea that loyalty to international institutions is more vital and moral than national interests, as Europe’s linkage to the US within the political West is the main source of stability and prosperity.

Return of Civilizational Distinctiveness

The hegemon is now gone, and the universal claims are rejected by the wider world. A multipolar world is already here, and the rising powers are demanding a return to a Westphalian world order of sovereign equals based on civilizational distinctiveness. As Xi Jinping insists, all civilizations have their own path to development, and no aspiring hegemon has the right to tell others how to develop. The return of rhetoric about civilizational states across the Eurasian continent signifies a rejection of unipolarity and universalism. New institutions such as the SCO and BRICS attempt to accommodate the multipolar world, yet new members are joining faster than institutional efficiency can adjust to.

The US has reluctantly already begun adjusting to these new realities, as it recognises it cannot be everywhere and must prioritise, while the language of liberal universalism is being replaced with national interests. New political forces are rising in the US that want to scale back the empire to save the republic, as a strategic retreat would allow the US to rebuild its strength and end the collective balancing by other great powers. What makes Europe so dangerous today is its weakness and panic due to the failure of finding a new role in the multipolar system. Security can no longer be based on the dominance of the collective West; there is no clear economic model; and the claims of representing universal values are no longer convincing. Yet the Europeans are not willing to recognise new realities and adjust accordingly by diversifying economic and political connectivity. The available evidence suggests that this will be a very turbulent transition from unipolar universalism to multipolar distinctiveness, and the new world will more likely be born through war than diplomacy

A mounting standoff over allegations of covert Chinese nuclear testing and rapid arsenal expansion has collided with an intensifying domestic debate within the US over whether it must abandon its decades-long test moratorium. US officials are pressing China in confidential diplomatic talks over suspected low-yield nuclear testing and a rapid strategic expansion across at least […]

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Sandra Martinez Roe, a mother in Los Angeles, hopes that her son will never use artificial intelligence (AI) in school. “I’m not going to let my children be guinea pigs,” she tells EL PAÍS over the phone. The city’s school board granted her wish, at least temporarily, a couple of weeks ago: the Los Angeles Unified School District (LAUSD) has banned AI from public classrooms this school year.

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Al Mayadeen | September 26, 2026

China called on Saturday for an immediate end to the blockade on Cuba, in a speech to the UN General Assembly that stopped short of naming the United States.

Vice President Han Zheng urged the “relevant country” to “immediately stop using the threat of force against Cuba” and to “immediately and completely lift the blockade and sanctions.”

He also pushed back against the US on Iran, saying “China holds that the sovereignty and security of countries in the Middle East, including the Gulf, should be respected,” though he did not mention the US at any point in his remarks.

The comments come as a US pressure campaign has largely cut off oil supplies to Cuba. The US oil blockade began in January and has deepened blackouts, with the island’s electrical grid suffering a total collapse earlier this month that left millions without power.

Equality among states

Han said major countries carry special responsibility for international peace and security and should lead by complying with the rules, upholding the rule of law, and “doing what’s right.”

He also cast China as a reliable partner and a steadfast defender of developing nations, saying all countries, “big or small, are equal members of the international community” and that world affairs should be handled through consultation.

Russian Foreign Minister Sergey Lavrov spoke at the UN shortly after and made a similar appeal, urging Washington to end its siege of Cuba and ease trade restrictions on the island.

He also said the US should remove Cuba from its list of state sponsors of terrorism.

Trump-Xi summit

US President Donald Trump hosted Chinese President Xi Jinping at the White House earlier this week, welcoming him with military flyovers and a lavish state dinner, according to Reuters.

During the talks, Trump told Xi that China should refrain from providing support to Iran in the US war on Iran. The US ambassador to China claimed on Friday that Trump received assurances from Xi that Beijing would not do so.

This followed reports that China had supplied Iran with shoulder-fired air-defense missile launchers and that Tehran had found ways to evade sanctions on its oil sales with Chinese help.

Beijing has repeatedly rejected the US sanctions campaign against Iran. In August, the Foreign Ministry said that sanctions and pressure “will not help resolve the issue” and that China opposes “illegal unilateral sanctions” lacking a basis in international law.

Chinese support for Cuba

Cuba was the first Latin American country to establish diplomatic ties with the People’s Republic of China, and 2025 marked 65 years of relations.

China’s practical support has centered on energy. Reuters reported that Beijing financed 55 solar projects in Cuba in 2025, including a 21-megawatt plant near Jatibonico, with 37 more planned by 2028. Cuban media reported that a shipment of 5,000 solar panels arrived in September, the third of its kind in recent months.

Beijing has also committed 90,000 tonnes of rice to Cuba in 2026, of which 30,000 tonnes have been delivered and 60,000 tonnes pledged.

Al Mayadeen | September 26, 2026

International flights from Iran to several destinations remain operational despite the expansion of US sanctions targeting the country’s aviation sector, according to Tehran’s Imam Khomeini International Airport.

The airport said Saturday that flights to Turkey, Malaysia, China, Pakistan, Vietnam, and Afghanistan were continuing according to their previously announced schedules.

The announcement comes as Washington escalates economic pressure on Iran and seeks to restrict the ability of Iranian airlines to maintain international operations.

Iranian flights continue despite sanctions

Imam Khomeini International Airport said that, aside from flights already canceled, no additional cancellations had been announced.

The canceled services include flights involving the United Arab Emirates, Iraq, Oman, and Georgia.

The airport also said it was working to restore suspended air connections as soon as possible.

The continued operation of several international routes comes despite growing restrictions on Iranian aviation following a new round of US sanctions announced on September 8.

The measures have affected Iranian airlines as well as companies and intermediaries involved in providing services to the country’s aviation sector.

Recent reporting indicates that Iranian carriers have continued operating some international services despite the sanctions, including flights to China, Turkey, Thailand, and Afghanistan.

US measures target Iran’s aviation sector

The US Treasury Department announced sanctions on September 8 against 36 targets linked to Iran’s aviation sector, including 27 Iranian airlines. Washington described the measures as an effort to target what it considers Iran’s remaining unsanctioned carriers and the networks supporting them.

The sanctions form part of a broader US campaign to restrict Iran’s access to international financial and commercial networks.

The measures have also placed pressure on foreign companies providing Iranian carriers with fuel, ground handling, aircraft-related services, and other forms of support.

The consequences, however, have varied by country. While some governments and companies have restricted Iranian aviation connections, other countries have continued to facilitate flights.

Iraq restrictions trigger backlash

In Iraq, the suspension of Iranian flights, particularly through Najaf International Airport, has triggered criticism from official, political, factional, and religious quarters.

Several Iraqi parties and figures have called for the decision to be reversed and rejected what they described as US pressure on Baghdad.

The Iraqi government is also moving toward dialogue with Washington in an effort to secure an exemption that would allow air links with Iran to resume.

Ali Akbar Velayati, international affairs advisor to Iran’s Leader, said the restrictions on Iranian flights were part of an effort by Iran’s enemies to compensate for their battlefield defeat by attempting to dismantle the “unity of the fronts” from within.

The Iranian Ambassador to Iraq, Mohammad Kazem Al-Sadegh, further told Iran’s ISNA news agency that a new decision surrounding Iranian flights to Iraq is likely to be announced soon.

He added that Iran is in contact with Iraqi officials and proposals on the matter have been submitted.

Al-e Sadegh noted that roughly 12,000 to 13,000 people travel between Iraq and Iran via Iranian airlines.

China maintains air links with Iran

China has maintained its opposition to unilateral US sanctions and continued to receive Iranian flights.

Flight-tracking data cited in recent reports showed Iranian services continuing to operate to Chinese destinations after the latest US measures took effect.

The continued connections with China also reflect the broader geopolitical divide over Washington’s unilateral sanctions policy, with Beijing maintaining economic and diplomatic ties with Tehran despite US pressure.

Agreements at no cost

By Lorenzo Maria Pacini – Strategic Culture Foundation – September 26, 2026

Xi Jinping left Washington on Friday, September 25, bid farewell by a 21-gun salute and the administration’s top officials lined up at the airport. A three-day state visit organized with a level of attention to detail that the White House rarely reserves for a systemic rival: the welcome at the foot of the aircraft stairs, a three-hour meeting in the Oval Office, the state dinner, tea with the spouses, and a visit to the National Archives. A Schramsberg was chosen for dinner – the same winery that provided the wine for the 1972 toast between Nixon and Zhou Enlai. At the table sat half of the American business community: Musk, Jensen Huang, Zuckerberg, Tim Cook, Bezos, Pichai, Dimon, Fink, as well as three Supreme Court justices, the Federal Reserve chair, and half the Cabinet.

Then there is the real conversation, which must be read between the lines. Beijing immediately released its own account of the talks. On the American side, in the early hours, there was no official statement: only remarks from officials and a president who chose not to answer questions on the substance of the matter. This asymmetry in documentation alone reveals who wanted to set the terms of the meeting in writing.

On the Iran issue, administration sources presented an alignment on three points as “significant progress”: Iran must never acquire nuclear weapons; the Strait of Hormuz must remain open; and there must be no tolls in the strait. Taken one by one, these three points coincide with positions that Beijing had been advocating even before boarding the plane. China holds a permanent seat on the Security Council and is a signatory to the 2015 JCPOA: Iranian nonproliferation has been its official policy for over a decade. An open Strait of Hormuz is in China’s interest even more than it is in America’s, because East Asia consumes the largest share of the crude oil passing through the strait, and China pays more than anyone else for Brent crude that remains above $100 per barrel. As for tolls, a transit fee imposed by Tehran would hit oil tankers bound for Chinese ports first and foremost.

Washington has thus secured Xi’s signature on three statements that Beijing would have endorsed in any forum. The actual gain is more limited, but it exists. China’s distancing itself from Iran’s demand for tolls weakens a card that Tehran is playing in the New York negotiations, where discussions center on a phased exit from the crisis (reopening of the strait, simultaneous lifting of the U.S. naval blockade, followed by the unfreezing of frozen assets), and where the Iranian delegation is reportedly aiming to transfer the issue of transit rights to a separate annex.

Independent accounts fill in what the American version leaves out. Xi asked Trump for an immediate return to the Islamabad Memorandum of Understanding and the resumption of negotiations “as soon as possible,” leading to a comprehensive agreement that includes the nuclear issue. Trump did not say yes. Rather than being resolved at the summit, the Iranian issue was kept off the summit agenda.

Tehran and Taiwan

Regarding Chinese support for Iran, the officials themselves admit that the picture is incomplete: “There has been indirect support, we believe, but no direct evidence.” The United States says it is “very concerned” but is unable to prove it. Trump reportedly told Xi in person, however, that any aid to Tehran – “whether direct or indirect, in the form of intelligence, components, or military equipment” – is “totally unacceptable.”

A warning is only as strong as the tool that backs it up, and here the tool is nowhere to be seen. During the same period, flight tracking data recorded a Mahan Air flight landing as scheduled in Guangzhou, and no measures were taken against Chinese airports or operators: the no-fly zone around Iran has failed precisely where it matters most. The term “indirect,” moreover, remains deliberately vague. If it included the purchase of Iranian crude oil, it would strike at the heart of Sino-Iranian trade; if it does not include it, it is reduced to military supplies that Washington, by its own admission, cannot substantiate. The ambiguity serves both sides: the Americans to keep the threat hanging in the air, and the Chinese to continue operating in the gray zone. My assessment is that action by the Treasury against Chinese entities linked to Iran is unlikely before the trade agreement is finalized, with a moderate degree of confidence.

Washington insists that pressure on Iran is a separate issue, unrelated to arms supplies to Taiwan or any other negotiations. This separation has its own domestic logic. With less than six weeks until the November 3 midterm elections, the administration cannot risk being accused of trading Taipei for Chinese cooperation in the Gulf.

The point is that this separation is unilateral. In the Chinese account, Xi described Beijing’s position on reunification and territorial integrity as clear-cut; he called on the United States to oppose Taiwan’s independence and to handle the issue with caution, noting that doing so would lay a solid foundation for strategic cooperation between the two countries. Taiwan is not just another issue among many; it is the condition underpinning them all, including Iran. Beijing will be watching to see how Washington translates its statements into concrete actions, and that response will remain the primary indicator of American seriousness. The result is a clear asymmetry: the United States is giving up using Taiwan as leverage, while China retains it as a precondition.

What about the option of a trade truce?

On the economic front, the summit resulted in the extension of the trade truce until January 10 – which averts an immediate return to much higher tariffs – and the announcement of a managed trade agreement, the details of which are expected on Monday following weeks of negotiations. No breakthrough on tariffs, rare earths, or technology controls. The very term echoes the “Phase One” model from January 2020: quantified purchase commitments – that is, managing the symptoms of a rivalry whose structural causes remain unchanged.

On artificial intelligence, the positions remained distinct. Xi proposed dialogue on risks, human oversight of technologies, and cooperation against abuses, inviting both sides to build on their respective strengths rather than monitor one another. Trump acknowledged that AI concerns the future of humanity, but made it clear that he prefers the current status quo to remain largely unchanged. No common rules, no mechanisms. The two capitals limited themselves to confirming mutual support for the APEC summit and the G20 summit they will host this year, thereby setting the schedule for upcoming meetings.

Taken together, the U.S. outcome consists of a declarative convergence on three already-shared principles, a verbal warning, and a trade agreement yet to be reviewed. Beijing takes home more: a truce until January, no new technological restrictions, Taiwan reaffirmed as the foundation of the relationship, and, above all, the U.S. adoption of the Chinese formula for a “constructive relationship of strategic stability,” agreed upon in May and now revived. Robert Lawrence Kuhn provided the most honest summary: the summit’s main outcome is a longer planning horizon. For a power convinced that time is on its side, that longer horizon is the reward.

There is one objection that must be taken seriously. Xi’s public distancing from the concessions isolates Tehran just as an internal front is opening up in Iran, with an impeachment motion filed in parliament against Foreign Minister Araghchi, accused of negotiating with the Americans without the green light from the Supreme National Security Council. But this very situation highlights the limitations of that gain. The question in Tehran is no longer just what to offer, but who has the authority to offer it; and on this point, Chinese pressure regarding the tolls changes nothing.

There are few but concrete indicators to watch in the coming weeks. The text of Monday’s agreement will reveal whether the trade deal extends to rare earths or is limited to agricultural and energy purchases. The New York channel will indicate whether the phased exchange – involving shipping through the Strait of Hormuz in exchange for the lifting of the blockade – becomes operational. The six ballistic missiles launched by Ansarallah toward Yanbu and Taif – targeting the terminal of the only major Saudi route bypassing the strait – demonstrate just how narrow the margin is before the price of crude oil pushes Trump, on the eve of the election, toward military options. Finally, a potential designation of Chinese entities by the Treasury would lend real weight to the warning from the Oval Office.

As long as none of these signals change, we can say that the summit has stabilized Sino-American relations without stabilizing the Gulf – and regarding the Gulf, Beijing has offered words, not leverage.

China’s President Xi Jinping concluded his three-day state visit to the US on Friday, September 25, with hopes of enhanced cooperation and partnership between the world’s two largest economies.

Xi arrived in the US on Wednesday and received a large-scale welcome from President Donald Trump. Though this was their third in-person meeting it was Xi’s first state visit to the US in over a decade.

On Thursday, the leaders had a long in-person conversation in the White House and finished the day with a state dinner with 130 guests, including tech executives. Though the US is yet to release its version of the official proceedings, reports indicate they discussed a range of outstanding issues such as the dispute over trade and tariffs, cooperation in Artificial Intelligence, the issue of Taiwan, and the US-Israeli war on Iran. 

During the meeting with Trump, Xi called for strategic stability in the China-US relationship which will benefit both countries and the people around the world, Xinhua reported.  

“China and the US should be partners, not rivals,” Xi said. 

Xi’s statement comes at a time when the two countries are negotiating a longer trade deal after briefly facing each other in a tariff war last year. Both countries agreed to extend their temporary trade truce which halted the tariff war till January to give their negotiators more time.

The so-called Busan Trade Truce was set to expire in November this year.  

Xi hoped that “both sides would stay committed to the principles of mutual benefit and win-win cooperation and promote the sustained, stable and sound development of China-US economic and trade relations.” 

Technology and AI

Successive administrations in the US have characterized China’s advancements in technology and other economic sectors as a threat to American interests and have tried to curb them by restricting its access to technology.

In his attempt to address such apprehensions, Xi proposed that “both sides work towards a relationship featuring cooperation as the mainstay, moderate competition, manageable differences, and the promise of peace.” 

Talking about the competition in the development of Artificial Intelligence (AI), Xi offered increased coordination and cooperation between the countries as a way of mutual benefit. 

While emphasizing that “two sides should maintain human control over AI technologies, uphold people-centered approach and the principle of using AI for good” he proposed greater exchange of information to “prevent any misuse and abuse of AI.”

Read more: The AI frontier asks to be paced: anatomy of a panic

Xi also expressed hope that Chinese companies “are treated fairly in the US” while inviting more US companies to invest in China. “Working together, we can lengthen the list of cooperation and shorten the list of issues” he underlined.

The US has sanctioned or put a large number of Chinese companies, including its AI firms on various watch lists in recent years, after accusing them of working with the Chinese armed forces or being involved in the so-called technology theft.

Notably, however, major US tech and finance executives such as Jensen Huang of Nvidia, Mark Zuckerberg of Meta, Eric Yuan of Zoom, Kelly Ortberg of Boeing, Larry Fink of Blackrock, Sam Altman of OpenAI, Satya Nadella of Microsoft, Sundar Pichai of Google, Jeff Bezos of Amazon, and Elon Musk of SpaceX and Tesla, were present at the state dinner for Xi’s visit hosted at the White House on Thursday, September 24, though no details of cooperation between US and Chinese tech firms have emerged.

Taiwan

Reiterating China’s resolve to “safeguard national reunification and territorial integrity,” Xi expressed hope that the US will “adhere to the correct position on opposing ‘Taiwan independence’ and handle the Taiwan question with caution.”

China has repeatedly accused the US of promoting the separatist cause in Taiwan, despite officially adhering to “one China policy.” The US under Trump has sold or agreed to sell billions of dollars’ worth of weapons to Taiwan in complete disregard of China’s objections.

China has also accused the US and its allies in the region of promoting an arms race by deploying advanced weapon systems close to its borders.

Xi said if the US follows the correct position on Taiwan it “will enable both the countries to lay a solid foundation for their strategic cooperation and the development of their bilateral relationship.”

US-Israeli war on Iran 

China has refused to intervene or get involved in the US-Israeli war on Iran, despite Trump’s repeated calls for them to do so. China has maintained the war was unnecessary and repeatedly warned against its prolongation. It has supported the interim peace deal signed in June under international mediation.

Xi reiterated this position during his visit to the US, expressing hope that both Iran and the US would soon return to the Memorandum of Understanding (MoU) and end the war.

Xi claimed that “China-US cooperation may not solve every problem in the world, but without it, it would be hard to solve many of the world’s problems” and proposed more dialogue and “mechanisms of crisis communication and prevention” between their armed forces.

Read more: No new talks with the US until the previous conditions are met, says Iran

Trump said his meeting with Xi on Thursday was “great” also claiming they have maintained close communication.

Trump also agreed that “continued dialogue” with China is necessary to reach agreement on significant issues.