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World Imbalances Trouble G-7 in Wake of Trump's China Encounter
Central BanksThe town and church of Evian-les-Bains by Lake Geneva, Lac Leman, France.Photographer: Tim Graham/Getty ImagesMay 17, 2026 at 7:00 AM UTCThe lopsided foundations of world growth will focus global finance ministers this week in the aftermath of the summit that attempted to reset trade ties between its two biggest economies. While a relative sideshow to US President Donald Trump’s encounter with Chinese counterpart Xi Jinping that concluded on Friday, the Group of Seven meeting in Paris is no less ambitious as French officials position the forum to address structural misalignments underpinning the Beijing talks.
Trump's China Trip Underscores How Power Has Shifted East - TIME
He may have descended Air Force One late Wednesday to the cheers of schoolchildren brandishing the Stars and Stripes, and flanked by tech’s most influential tycoons, but it didn’t take long for U.S. President Donald Trump to be put in his place in Beijing.In the first closed-door discussions of the visit, Chinese President Xi Jinping issued a stinging rebuke regarding American arms sales to Taiwan, warning the superpowers could “collide or even enter into conflict” regarding the self-ruling island, over which China claims sovereignty. Taiwan, Xi said, “is the most important issue in China-U.S. relations.”Given that Trump explodes at even the most trifling perceived affront—pulling 5,000 American troops out of Germany after Chancellor Friedrich Merz said the U.S. had been “humiliated” in Iran—it was telling that Xi felt empowered to lay down the law from the get-go. Indeed, the most enduring image from the entire visit is the two leaders standing outside the Ming Dynasty Temple of Heaven, with Trump remaining curiously tightlipped as reporters enquired whether they had discussed Taiwan. “China is beautiful,” Trump offered instead. Photograph by Kenny Holston—Pool Photo/APU.S. Secretary of State Marco Rubio scrambled to insist that U.S. policy on Taiwan remained unchanged. But the optics of the U.S. President, for whom belligerence has long been a badge of honor, appearing awkward and cowed is a stark illustration of the shifting balance of global power.“Xi felt he has a license to make discordant warnings seemingly without concern about blowback or displeasure from Trump’s side,” says Sung Wen-ti, a scholar focused on China’s leadership at the Australian National University. “He appeared tough in public in front of Trump and got away with it.”The BriefDailyThe day's top headlines, curated by TIME editors.That projection of strength may be surprising given the very real challenges China faces, including an economy struggling from a prolonged property crisis, weak consumer demand, and entrenched deflation. GDP growth has slowed to around 5%, far below boom-era levels, while youth unemployment hovers near 19%.But China has also proven extraordinarily resilient, with a record $1.2 trillion trade surplus last year despite U.S. tariffs that peaked at 145%. In April, China reported record monthly exports, rising 14.1% year-on-year, owed partly to rising demand for green technology products, from electric vehicles to wind turbines and batteries, demonstrating its a...
Trade wars to extended truce: Analysts expect 'stabilization ... - CNBC
The world's two largest economies sought to stabilize fractured ties at their first high-level meeting in nearly a decade.
China warns Trump that differences over Taiwan could lead to a clash : NPR
At the summit, the Chinese leader placed Taiwan, a key point of friction between the U.S. and China, at the center, calling it "the most important issue" between the two countries.
