For China and leader Xi Jinping, the summit in Washington offered a reprieve from confrontation, providing valuable time to address domestic crises. A housing market crash has wiped away savings for tens of millions, while local governments face revenue shortfalls as land-use income collapses. This breathing room allows Beijing to prepare for the once-in-five-year Communist Party national congress next autumn, where a new slate of top leaders will be chosen. By stabilizing relations with the U.S., China can concentrate on internal priorities and building a more resilient economy.

Despite initial fears of steep tariffs and technology restrictions under the Trump administration, Beijing demonstrated economic leverage, particularly through rare-earth metal exports. This leverage forced Washington to ease some aggressive measures. While trade frictions have receded as an immediate concern, economic brinkmanship continues in emerging sectors like artificial intelligence. Beijing has long pursued a policy of replacing high-tech imports with domestic production, making China a dominant player in batteries, solar panels, and electric vehicles. This strategy has reduced foreign economic pressure but increased dependence on Chinese supplies globally. Furthermore, massive investments in electric vehicles, wind, and solar power have insulated the economy from high oil prices and supply shortfalls, reinforcing energy self-reliance.

Experts note that time and stability are crucial for reducing exposure to the U.S. and building a self-reliant economic model.