Summary
- Trade, technology, Taiwan, military influence and the struggle for global leadership gradually pushed Washington and Beijing from rapprochement towards strategic rivalry.
- Islamabad’s policy would need to preserve its established relationship with China while keeping channels with Washington open, particularly in trade, investment, technology, regional security and economic cooperation.
- The summit produced tariff relief rather than complete free trade; trade commitments rather than the disappearance of economic disputes; AI dialogue rather than technological convergence; critical-mineral consultations rather than complete supply-chain integration; military communication rather than strategic trust; counter-narcotics cooperation despite wider rivalry; Taiwan dialogue without a fundamental settlement; and continued diplomacy rather than a permanent solution to US–China competition.
By Malik Khuda Bakhsh Awan, former IG Punjab
The world has become accustomed to bad news from Washington and Beijing. For years, the relationship between the United States and China has looked like a long road with a dangerous cliff on either side. One miscalculation, one military encounter, one tariff too many, or one technological restriction too far could send the two great powers over the edge. Yet the Trump–Xi Washington Summit of 23–25 September 2026 offered something less dramatic but perhaps more useful: not peace, not friendship, and certainly not the end of rivalry, but an attempt to put guardrails around it. That may sound like a small achievement. In international politics, however, keeping the lid on a boiling pot is sometimes more important than pretending the fire does not exist.
To understand the summit, one must look backwards. The United States and China have travelled a remarkable road in more than seven decades. After the Chinese Revolution of 1949, Washington and Beijing stood on opposite sides of a deep ideological divide, with Taiwan becoming a central point of confrontation. Then came Richard Nixon’s historic visit to China in 1972 and his meeting with Mao Zedong. The Shanghai Communiqué opened the door to rapprochement. Seven years later, in 1979, the United States and the People’s Republic of China formally established diplomatic relations, creating channels for economic, cultural and strategic engagement. What followed was one of the great transformations of modern international politics. Former enemies became economic partners. Factories, supply chains, students, investors and technology crossed borders. Interdependence grew until it became difficult to tell where competition ended and mutual dependence began.
But history has a habit of changing the rules in the middle of the game. Trade, technology, Taiwan, military influence and the struggle for global leadership gradually pushed Washington and Beijing from rapprochement towards strategic rivalry. The Trump era intensified that competition through tariffs and technological restrictions. Yet diplomacy also showed that rivalry and cooperation could occupy the same room without immediately coming to blows. That contradiction was on full display in Washington.
Xi Jinping received an elaborate welcome: a 21-gun salute, military flyover, White House talks, troop review, state dinner, tea ceremony and a visit to the National Archives. It was theatre, certainly, but diplomacy has always had a theatrical side. Symbols matter because states communicate not only through agreements but also through ceremony. The message was unmistakable: the two countries may be rivals, but neither side was prepared to treat the other as an enemy beyond the pale.
The more important business, however, was conducted away from the cameras. The trade war did not end. Instead, the two sides extended the trade truce until 10 January 2027 and agreed to reciprocal tariff reductions covering approximately $30 billion of goods in each direction. Consultations would continue to stabilise bilateral commerce. This was not a grand bargain. It was a temporary bridge over a troubled river. The distinction matters. Tariff relief is not free trade. Trade commitments do not erase trade disputes. The machinery of economic confrontation remains in place. But selective relief represents a move from broad economic punishment towards targeted economic management. The negotiations also covered agriculture and energy, including substantial Chinese purchases of US coal in 2027 and 2028. In other words, geopolitics was translated into something very concrete: contracts, commodities and commercial commitments.
Then there is the new battlefield: critical minerals. Rare earths and other critical minerals may sound like dry material for engineers and economists, but they are rapidly becoming the oil of the twenty-first century. They feed semiconductors, batteries, renewable-energy systems, defence equipment and advanced manufacturing. Whoever controls vital supply chains possesses more than a commercial advantage; they possess leverage.
Artificial intelligence adds another layer to the contest. Washington and Beijing agreed to establish a China–US AI Dialogue, with another meeting planned for November and dedicated channels for discussing AI-related risks and opportunities. Yet the larger technology dispute remains unresolved. Restrictions on advanced technology have not disappeared. Thus, AI stands with one foot in cooperation and the other in competition. That is the central paradox of this summit: the same two powers that compete over the technologies of the future must also talk about how those technologies might become dangerous.
The security dimension is equally revealing. Washington and Beijing agreed to deepen cooperation between their drug-enforcement agencies, including action against new psychoactive substances and precursor chemicals. This is a narrow area of cooperation, but narrow doors sometimes lead to larger rooms. Military communication may prove even more important. When two heavily armed powers compete, silence is not always golden. A military encounter, an accident or a regional crisis can escalate rapidly if there is no telephone line, diplomatic channel or senior officer available to say, “Stop. Let us talk.” In such circumstances, communication is not a sign of weakness. It is insurance.
Taiwan, however, remains the elephant in the room. It was outside the settlement framework. China continued to emphasise stability in the Taiwan Strait and urged Washington to approach the issue cautiously. No fundamental agreement was reached. The problem therefore remains one of the most consequential unresolved questions in US–China relations.
There were, nevertheless, limited areas of convergence on international security. Both sides agreed that Iran should uphold its commitment not to develop nuclear weapons and that no country or organisation should impose tolls on international waterways. Such agreements do not erase strategic disagreement, but they demonstrate that two rivals can sometimes find common ground without first becoming friends.
The summit’s eight-point understanding also included strategic stability, APEC and G20 cooperation, Iran’s nuclear commitment, World War II historical ties, trade and tariff reductions, counter-narcotics, AI dialogue and continued cultural engagement, including Chinese pandas for Atlanta. Even the pandas have a diplomatic role. Great-power politics has room for missiles, minerals and machine intelligence—and occasionally for a pair of furry diplomats.
The deeper question is whether this diplomacy can survive after the leaders leave the room. This is where the idea of the “Thucydides Trap” becomes relevant. Associated with historian Graham Allison, the concept describes the danger that rivalry between an established power and a rising power can generate heightened risks of conflict. History contains enough examples to make the warning difficult to dismiss. But history is not destiny.
The Washington summit demonstrated another possibility: dialogue instead of silence, negotiation instead of escalation, crisis communication instead of brinkmanship, and economic management instead of an uncontrolled trade war. None of these guarantees peace. They simply make catastrophe less automatic.
The visit to the National Archives was therefore more than a ceremonial stop. History became an instrument of diplomacy. By invoking the experiences of both countries, the leaders used the past not merely as a museum exhibit but as a reminder that political systems can remain fundamentally different while coexistence remains possible.
Yet we should not mistake a fire extinguisher for a cure. The summit did not resolve Taiwan. It did not settle the disputes over advanced technology, semiconductors, critical minerals, trade imbalances or strategic influence. It produced cooperation without resolution. The agreements are therefore mechanisms for managing competition, not mechanisms for abolishing it.
For the Global South, this distinction is crucial. Countries outside the traditional centres of power increasingly find themselves walking a tightrope. They need economic interdependence but also strategic autonomy. They want access to technology, investment and markets while avoiding becoming pawns in a contest between rival centres of power.
Pakistan is no exception. The future of US–China relations has direct implications for Pakistan’s China–Pakistan strategic cooperation, US–Pakistan relations, regional security, CPEC, trade, technology, investment and diplomatic balancing. A less confrontational relationship between Washington and Beijing could create greater space for economic engagement. Renewed rivalry, by contrast, could place additional pressure on countries that maintain relations with both powers. For Pakistan, therefore, the strategic task should be to turn diplomatic balancing into an economic strategy rather than treat it merely as a geopolitical posture. Islamabad’s policy would need to preserve its established relationship with China while keeping channels with Washington open, particularly in trade, investment, technology, regional security and economic cooperation. At the same time, Pakistan would have an interest in avoiding a foreign-policy framework in which engagement with one major power automatically becomes a liability in relations with the other. The practical objective would be to widen Pakistan’s economic options, protect its strategic interests and maintain room for manoeuvre as US–China competition evolves.
That means thinking beyond the language of choosing sides. Pakistan’s leverage lies not in becoming an arena for great-power competition but in becoming an active economic partner to multiple centres of power. CPEC, trade, technology, investment and regional connectivity should therefore be viewed through the wider lens of economic resilience and strategic autonomy. If Washington and Beijing are moving towards managed competition, Islamabad can use that space to pursue parallel economic relationships rather than allowing geopolitical rivalry to narrow its choices. The principle should be straightforward: cooperate where interests converge, manage differences where they do not, and avoid allowing external rivalries to dictate Pakistan’s entire strategic horizon.
For Islamabad, therefore, the lesson is not to close one door in order to please the occupant of another. In a world of competing giants, foreign policy cannot afford to become a one-door house. The stronger position is to keep multiple doors open while ensuring that Pakistan’s own national interests remain the organising principle.
The summit also tells us something larger about the international system. The old Cold War model of rigid blocs is giving way to something more complicated. Countries will increasingly form issue-based partnerships, practise strategic autonomy and cooperate with one power on one subject while competing with it on another. Washington and Beijing are already living this contradiction. They are strategic competitors, yet they remain economically interdependent. They compete over technology while depending upon global supply chains. They disagree over security while needing mechanisms for international crisis management. They are neither pure enemies nor genuine partners. They are rivals who need each other.
And that may be the most important fact of all.
The real currency produced by the Washington summit was not dollars, coal, tariffs or even technology. It was predictability. Predictability is an underrated commodity in international affairs. Businesses need it before they invest. Governments need it before they make long-term plans. Militaries need it to prevent accidents. Markets need it to avoid panic. Ordinary people need it because wars and trade conflicts eventually arrive at the kitchen table.
Tariff consultations, AI dialogue, counter-narcotics cooperation, military communication and continuing diplomatic meetings create channels through which disagreements can be addressed before they become crises. Trump and Xi may generate diplomatic momentum through personal engagement, but personalities come and go. Institutions are what remain. That is why the summit should not be judged by the photographs of handshakes alone. What matters is whether the machinery built in Washington continues to function when relations become difficult again.
The summit produced tariff relief rather than complete free trade; trade commitments rather than the disappearance of economic disputes; AI dialogue rather than technological convergence; critical-mineral consultations rather than complete supply-chain integration; military communication rather than strategic trust; counter-narcotics cooperation despite wider rivalry; Taiwan dialogue without a fundamental settlement; and continued diplomacy rather than a permanent solution to US–China competition. That may sound modest. It is. But modesty in diplomacy can be a virtue. When two great powers disagree on almost everything that matters, agreement on how to disagree may itself be an achievement.
The Washington summit did not end the US–China rivalry. It did something more practical: it attempted to build an architecture of coexistence. Economic engagement, tariff management, strategic dialogue, crisis communication, technological consultations and selective cooperation now sit alongside unresolved disputes.
The two powers have not buried the hatchet. They have merely agreed, for the moment, not to swing it.
And perhaps that is the point.
The world does not need Washington and Beijing to become best friends. It needs them to remain predictable enough that competition does not become conflict, disagreement does not become war, and rivalry does not become a tragedy written by miscalculation.
The September 2026 summit therefore matters not because it ended the great-power contest, but because it recognised a harder truth: the United States and China may have to compete for decades while still learning how to live with one another. For Pakistan, the corresponding lesson is equally stark: do not allow great-power rivalry to shrink national choices. Preserve strategic autonomy, widen economic partnerships, protect room for diplomatic manoeuvre and make national economic interests the anchor of external relations.
In a dangerous world, that is not the end of the story. It may be the beginning of learning how to prevent the story from ending badly.
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