The backdrop to Xi’s statement is the ongoing trade standoff with the United States, which escalated earlier this month when U.S. President Donald Trump announced a fresh round of tariffs on Chinese imports. Though Trump recently said those tariffs “won’t be anywhere near 145%, ” tensions remain high.

US President Trump hinted at easing trade tensions with China, suggesting potential tariff reductions upon reaching a deal, signaling a possible shift from his earlier aggressive stance. This comes amid market volatility and concerns from Treasury Secretary Scott Bessent about the unsustainability of current tariff levels.

Japan had long maintained deep economic ties with both China and the United States. Recent trade tensions may challenge that approach.