XI-Trump Summit Call is good for the global economy

In the midst of an incomplete geopolitical error lines and fragile global economy, a nearly two -hour phone call between Chinese President Xi Jinping and US counterpart Donald Trump on September 19th, produced a rare moment of clarity in the most subsequent bilateral relationship in the world.

The telephone conversation – described by Beijing as “realistic, positive and constructive” and by Washington as “very productive” – ​​marks a mutual willingness to facilitate tensions.

Just a few days earlier, top Chinese and US officials completed their fourth round of talks in Madrid, Spain, where they discussed controversial issues such as Trump’s unilateral invoices, export controls, Tiktok’s export controls. The main result of two -day discussions was a “frame” agreement on the Chinese popular video sharing platform.

The XI-Trump-TRUMP-The third immediate debate between the two from Trump’s return to the White House in early 2025-reflects that both sides recognize the importance of the leader’s diplomacy to leader in chaotic times. The “honest conversation” that had covered a wide range of issues, including commercial disputes, the Tiktok conflict, their historical ties and their common responsibility for the preservation of world peace.

The summit was important both in symbolism and in essence. It came shortly after a spectacular military parade of China he organized to honor his victory against Japan in World War II. XI recalled the alliance for China-USA and the contributions of American pilots, saying that the families of the “flying tigers” were also invited to the parade to honor their sacrifices in China’s “anti-fascist struggle”. The underlying message in Xi’s report was a subtle appeal for a renewed commitment to peace and cooperation in today’s turbulent world.

Beijing remains cautious about what it considers to be an increasingly contrasting stance by the US, leading to Washington’s concern that a “authoritarian” China can seek to upgrade the “liberal democratic world world” and eventually overthrow the world. This perceived threat informs much of the US approach – politically, diplomatic, economic and strategic. This is despite repeated assurances from the Chinese leadership that the world is “large enough” to both powers to coexist in a mutual respect and cooperative relationship.

The essence of the XI message was compromised: the two largest economies in the world, the US and China, are able to pursue a symbiotic relationship-under the condition that Washington is giving up a zero-sum mentality and both sides are committed to working in the same direction. At the same time, however, the Chinese leader also confirmed his country’s steady stance on major bilateral issues. Regarding trade, it warned against unilateral protective measures and emphasized the need to exploit the progress made in four rounds of negotiations between the two sides.

The last round of talks was consumed by discussions about Tiktok, creating a “framework” agreement that the US later brought as a victory. The XI, however, reiterated that Beijing only supports a resolution that is aligned with market principles and Chinese laws while serving the interests of both sides. And this attitude is reflected in the informal revealing outlines of the agreement, which is to be a consortium in which ByTedance, the parent company of Tiktok, will maintain almost 20% ownership.

The XI also urged Trump to create an “open, fair and non -discriminatory” environment for Chinese operations in the US, stressing that protective policies undermine trust and damage long -term financial interests.

Trump, for his part, hit a similar tone, describing America’s ties with China as “the most important bilateral relationship in the world”. He said Washington wanted a “long -term, big and big” relationship with Beijing and recognized the importance of cooperation to achieve world peace and stability. Trump also praised the parade “V Day” on Tiananmen Square as “seemingly beautiful”, adding a personal touch to the discussion.

It is not realistic to expect that a single call will solve deep issues, including commercial imbalances, technological differences and geopolitical rivalry. Any sign of defrosting in their relationships is a welcome development, especially in the context of a trade war that was rekindled by Trump after returning to the White House and around himself with “China Hawks” in his second administration.

The positive tone between the two leaders reacted far beyond Beijing and Washington. The world markets immediately responded, with major US shares, including the Dow Jones industrial media, the S&P 500 and the complex Nasdaq, gathering the renewed optimism about trade stability.

This confidence in the market enhances a broader truth: the US-China relationship does not only affect the two superpowers-it encompasses the whole world. From international supply chains to climate action, from palewriting to technology, the cooperation between financial No and No. 2 is not only important – it is necessary.

The World Bank and the IMF have consistently warned against US-China economic disconnection, saying it raises huge risks to the global economy, as it could disrupt global supply chains, prevent international investment and eventually prevent economic growth.

A 2021 IMF study found that technological disconnection between the US and China could shrink worldwide by up to 5%. A more recent IMF analysis in 2024 predicted that complete economic fragmentation could reduce world GDP by 7% in the long run – equivalent to $ 7.4 trillion.

However, an report by the World Bank of 2023 warned that these elements could underestimate the real impact. He warned that the disorder of complex, specialized supply chains could make some critical industries that cannot operate effectively in a divided global economy.

Any agreement on key issues, including US access to China’s Russian oil metals and US oil and access to US semiconductor chips, may be unlikely by October, when the two leaders meet face -to -face on the sidelines.

The cost of a trade war sowing between the two economic forces would be enormous, especially at a time when people are immersed in myriad crises, including ongoing wars in Europe and the Middle East and growing political and economic uncertainty. Washington must review its approach and rotate by the confrontation and retention of cooperation and cooperation – not only for the benefit of American and Chinese peoples, but for the greatest good of the international community.

The basic download from the XI-Trump Summit call is a common awareness in both Beijing and Washington, despite their complex relationships, diplomacy-as incomplete-the most effective tool for preventing conflict and shaping global economic prospects.

The writer is an independent journalist with special interest in geo -economy