Overview
- Chinese exports pivoted to non-U.S. markets, pushing the annual trade surplus above $1 trillion for the first time.
- Xi projected strength with a Beijing military parade attended by foreign leaders and a meeting with President Trump that he described as a “G2” encounter.
- U.S. rhetoric softened as Secretary of State Marco Rubio called for “mature” management of the relationship.
- China’s economy showed fragility with investment heading for its first annual contraction since 1998, weak retail growth, and continued declines in new-home prices.
- Pressure around Taiwan intensified through economic steps affecting Japan and renewed PLA drills, while Beijing plans targeted fiscal spending in 2026 and prepares for early‑year European visits and Trump’s April trip.