For the first time China has leverage over foreign countries: Fmr. Under Secretary of State Hormats

Summary

Bob Hormats discusses the dynamics of the Trump-Xi summit, highlighting that China now has leverage over the US for the first time in nearly a century. He also covers China's strategic concerns, domestic challenges, and the interplay of technology and rare earth dependencies.

• China is now a peer competitor to the US across economic, technological, and military dimensions.
• President Trump is meeting with Xi Jinping and top US CEOs in China.
• China has leverage over foreign countries, reversing historical dynamics.
• Xi Jinping focuses on avoiding the weaknesses that caused the Soviet collapse.
• China wants to avoid overreliance on US technology and rare earths.
• Taiwan is expected to be a key topic with pressure on Trump to moderate US stance.
• Domestic economic issues in China, like unemployment and real estate, may moderate summit tensions.
• The summit is likely to be relatively tranquil as Xi needs to focus on domestic matters.