China Exploits Iran War to Gain Advantage Over U.S. as Trump Heads to Beijing

A confidential U.S. intelligence analysis says China is exploiting the war in Iran to maximize its advantage over the United States across military, economic, diplomatic and other fields, as President Donald Trump begins his highly anticipated trip to Beijing.

The Washington Post says the assessment is circulating as Trump starts the trip and that two U.S. officials who have read the report described shifts in several key areas of competition.

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In a separate account of the summit context, SMH.au quotes international editor Peter Hartcher saying Trump “lifted those bans and said, ‘Go ahead. You can sell them’” on exporting the most high-quality silicon chips, semiconductors to China.

SMH.au also frames the Taiwan question through Trump’s own words, repeating that “Taiwan is 67 miles from China and 9000 miles from the US,” as Hartcher argues any hint of indifference could change the balance of power in the Pacific and beyond.

SMH.au says Hartcher believes Trump has already made many concessions to Xi Jinping “without extracting much in return,” pointing specifically to the technology question and the lifting of export restrictions on high-quality silicon chips.

Hartcher tells The Morning Edition podcast that the earlier trade deal “didn’t yield the expected results,” with China buying only 51 per cent of the US goods it promised to buy and not stopping the flow of fentanyl to the US.

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The Wire China’s daily roundup adds that the Financial Times is “Wary China braces for Trump’s visit,” while also noting the Financial Times report that “Trump’s plan to discuss Taiwan arms sales with Xi rattles Asian allies.”

In the same roundup, The Wire China also points to the New York Times framing of the summit as “Distracted and Bogged Down, Trump and Xi Enter a Summit of Reduced Ambitions,” with the war in Iran casting a shadow of uncertainty over both superpowers.

Beyond the summit, The Conversation reports that China appears “focused above all on the economic and technological aspects of power,” and argues that the EU’s relationship with Beijing is “problematic but seems manageable with the Union’s traditional instruments.”

“During President Donald Trump's visit to Beijing, he should take satisfaction in knowing that time, in the long run, is on the side of the United States”

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The Conversation also contrasts China’s approach with Russia’s, saying Russia’s case is “a clear manifestation of classic military imperialism in which a historical and ideological vision underpins the ambitions of territorial conquest.”

Le magazine GEO describes China’s domestic pressure in November 2025, saying retail sales rose only 1.3% year over year and that the housing sector is in trouble alongside a 2.6% plunge for the January–November period versus the same period in 2024.

Le magazine GEO adds that Beijing announced a record trade surplus of $1 trillion for the first eleven months of the year, while also citing the IMF warning about “persistent dependence on exports” and urging further stimulation of domestic demand.