And for now, at least, Beijing views the trade-deficit-obsessed Trump as a more pragmatic and adaptable partner to work with than the China hawks that called the shots during Trump’s first term. China’s leaders now believe they can broker a trade deal with Trump to reduce tensions.

Favoring "deals over deterrence" will damage U.S. alliances and embolden Beijing, says Craig Singleton of the Foundation for Defense of Democracies.

The bilateral agreement to extend the temporary trade war truce this week came after a third round of negotiations framed by both sides as positive. Trump’s advisers regularly cite his “excellent” personal relationship with Xi and continue to weigh the possibility of a face-to-face meeting in China later this year.

From talks on resuming direct flights to a series of high-level bilateral visits, longtime rivals China and India are quietly and cautiously strengthening ties against the backdrop of U.S. President Donald Trump’s unpredictable approach to both.

Gavekal Dragonomics’ Arthur Kroeber says tariffs haven’t hurt China’s growth perceptions and Beijing won’t accept a weak U.S. trade deal leaving little scope for a trade deal between the two major economies.

Their relationship is defined by a bloody border dispute, a vast power imbalance and a fierce contest for influence across Asia. Yet, President Donald Trump’s latest trade war may be achieving the unthinkable: pushing India and China into a wary but tactical embrace.