Cannes Film Festival

The shift in strategic gravity at the Beijing summit The recent high-stakes summit between Donald Trump and Xi Jinping signaled a fundamental recalibration of the world's most critical bilateral relationship. While the American president departed Beijing touting "fantastic" trade deals and a warm personal friendship with his counterpart, the underlying data suggests a more complex reality. For the first time in the history of these summits, the Chinese leader appeared to hold the upper hand, dictating the tempo and framing of the discussions. This shift isn't merely atmospheric. China is actively pursuing a "constructive China-US relationship of strategic stability," a phrase that masks a calculated effort to de-escalate adversarial tensions while maintaining its core strategic advantages. By inviting Xi to Washington in September, Trump has provided a measure of continuity that Beijing craves, even as China continues to leverage its dominance in critical supply chains to extract concessions on issues ranging from Taiwan to semiconductor trade. Rare earths and the leverage of critical minerals A primary driver of China’s newfound confidence is its enduring chokehold on rare earth and critical minerals. These materials—scandium, neodymium, and others—are the lifeblood of the modern Pentagon and the American technology sector. Without them, the production of advanced US weaponry and consumer electronics would grind to a halt. While the White House readout emphasized China’s agreement to address supply shortages, the Chinese communicate was notably silent on the matter. This omission is a tactical choice. Beijing views these minerals as bargaining chips, specifically designed to force American movement on its "red line" regarding Taiwan sovereignty. By withholding formal confirmation of supply guarantees, Xi maintains a potent lever over the US military-industrial complex, ensuring that any trade concessions from Washington are met with only the bare minimum of resource security. Boeing and the selective math of trade readouts The economic output of the summit reveals a stark divergence in interpretation. The US White House heralded a commitment from China to purchase 200 Boeing aircraft and at least $17 billion annually in agricultural products through 2028. However, these figures represent a step back from earlier speculations of a 500-plane deal. More importantly, the Chinese readouts focus on the establishment of two new institutional bodies: the Board of Trade and the Board of Investment. Beijing’s priority is not just buying American goods to satisfy a trade deficit; it is the long-term dismantling of tariffs and the expansion of opportunities for Chinese companies to invest directly in American manufacturing. While Trump seeks immediate, headline-grabbing purchase orders to satisfy his domestic base, Xi is playing a longer game, seeking to institutionalize a dialogue that could eventually erode US export controls on high-end technology. Jensen Huang and the Silicon Valley charm offensive Perhaps the most visible subtext of the summit was the presence of a heavyweight CEO delegation on Air Force One. Jensen Huang, the CEO of Nvidia, executed what can only be described as a masterclass in corporate diplomacy. By engaging with everyday citizens and local culture in Beijing, Huang signaled to Chinese regulators that Nvidia remains a committed partner despite US-imposed export bans on advanced AI chips like the H200. Nvidia’s situation is critical. Once commanding nearly 90% of the market share, its China revenue has plummeted due to trade restrictions. Huang’s "charm offensive" is a desperate but calculated attempt to convince Beijing to approve the import of H200 chips. The bottleneck is no longer just Washington; it is Beijing. Chinese regulators are weighing whether to allow Nvidia back in or to continue forcing domestic giants like Alibaba and ByteDance to use indigenous workarounds like Huawei’s Ascend chips. With the global robotics market projected to hit $5 trillion by 2030, the stakes for Nvidia—and the broader US tech sector—could not be higher. The manufacturing reality of Apple and Tesla Elon Musk and Apple represent the other side of this dependency. Musk traveled to Beijing seeking regulatory clearance for Tesla’s Full Self-Driving (FSD) software and to secure $2.9 billion in solar manufacturing equipment. Meanwhile, Apple remains tethered to the Chinese supply chain, which still accounts for roughly 74% of global iPhone production. The presence of Zhou Qunfei, the founder of Lens Technology, at the main summit table underscores this reality. Her company provides the glass for both iPhones and Tesla dashboards, embodying a level of manufacturing supremacy that the US cannot currently replicate. These American titans are not just in China to sell; they are there to ensure the survival of their production lines. This creates a paradoxical situation where the leaders of America's most valuable companies are effectively lobbying for stability in a region their own government views as a primary strategic threat. Soft power and the AI revolution at Cannes Beyond hard commodities and semiconductors, China is aggressively expanding its cultural influence through technology. At the Cannes Film Festival, the China Pavilion showcased the country's lead in AI-generated video content. Models from Chinese firms like Kuaishou are now outpacing American counterparts in key metrics, signaling a shift in how global audiences will consume media. This isn't just about entertainment; it's about the "China-maxing" of global soft power. With the Chinese film market poised to become the world’s largest within five years, the integration of AI into short-form and feature-length content provides Beijing with a potent tool for narrative control and economic expansion. As domestic consumption shifts toward more affordable "B2" (basement-level) entertainment, the government is successfully pivoting the film industry into a multi-billion dollar tourism and technology engine. A fragile stability based on mutual need The Beijing summit did not resolve the fundamental contradictions of the US-China relationship. Instead, it established a temporary, fragile equilibrium. Trump received the optics of a deal-maker, while Xi secured a strategic breathing room and maintained his leverage over critical minerals. The real progress will be measured by the actions of the newly formed trade and investment boards. If Beijing begins approving Nvidia’s AI chips or if Washington scales back arms sales to Taiwan, the "strategic stability" Xi seeks may take root. For now, however, the relationship remains a transactional tug-of-war, with China increasingly holding the sturdier end of the rope.