U.S.-China Trade War Escalates as Beijing Pushes Multipolar Order

China emphasized the inevitability of a "multipolar world" ahead of a pivotal summit between President Xi Jinping and U.S. President Donald Trump, as trade tensions and strategic competition between the two nations continue to reshape global economic and political dynamics. The remarks, made by Chinese Foreign Minister Wang Yi, underscored Beijing's push to counter U.S. economic pressure while advancing its own vision of a decentralized global order, according to the Economic Times.

The backdrop for these discussions includes China's latest five-year plan, which prioritizes reducing reliance on foreign high-tech sectors and boosting domestic consumption amid escalating trade frictions. Released after a top-level Communist Party meeting, the plan, according to AP News, reaffirms Beijing's commitment to central planning while signaling no dramatic policy shifts. Commerce Minister Wang Wentao, however, expressed optimism that U.S.-China trade negotiations could yield solutions, particularly on rare earths and soybean exports, ahead of the Trump-Xi meeting, according to Bloomberg.

Despite these efforts, U.S. and Chinese officials remain locked in a cycle of tit-for-tat measures. Washington has imposed sweeping tariffs, including a 100% levy on Chinese goods set for Nov. 1, while Beijing has retaliated with export controls on critical minerals and rare earths, according to Barron's. These actions have disrupted global supply chains and heightened risks for multinational corporations caught between conflicting regulatory demands, Barron's noted. China's Vice Commerce Minister Li Chenggang noted a "preliminary consensus" had been reached to avert further tariffs, though analysts caution that structural rivalry will persist, the Economic Times reported.

Regional diplomacy also took center stage as China sought to stabilize ties with Australia amid military incidents in the South China Sea and broader U.S.-led alliances. Premier Li Qiang emphasized collaboration in green technology and digital sectors during talks with Australian Prime Minister Anthony Albanese, according to U.S. News. Meanwhile, Singapore's Prime Minister Lawrence Wong warned that ASEAN's unity is under threat from U.S.-China rivalry, urging member states to avoid division and maintain credibility as a neutral bloc, according to The Business Times.

The stakes for the Trump-Xi summit are high. U.S. Treasury Secretary Scott Bessent hinted at progress on rare earths and soybean deals, but broader challenges—such as U.S. pressure on European allies to decouple from China and Beijing's expanding influence in the Pacific—remain unresolved, Bloomberg reported. China's foreign minister reiterated calls for "depoliticizing economic issues" and rejecting "trade wars," framing the multipolar world as a natural evolution of global power dynamics, the Economic Times added.

As the two superpowers navigate this complex landscape, the path to cooperation appears fraught. While both sides acknowledge the need to manage differences, the underlying competition for technological and economic dominance shows no sign of abating, according to Bloomberg.