US-China Talks Revive 'G-2' Concept with Tariff Cuts, Global Implications

U.S. President Donald Trump and Chinese President Xi Jinping held a significant summit in South Korea, marking a potential revival of the "G-2" concept, which envisions the U.S. and China jointly managing global affairs. Trump described the meeting as a "G-2" summit, and both leaders emphasized their countries' responsibility to work together for their mutual benefit and global stability, with China welcoming this cooperation while maintaining its independent foreign policy. The summit resulted in trade concessions, including a reduction of the U.S. tariff on China from 57% to 47%, and agreements to lift export controls on rare-earth metals and semiconductor chips. Historically, the "G-2" idea emerged during the 2008 financial crisis but was previously rejected by China, which preferred multilateralism over exclusive bilateral dominance. The renewed "G-2" rhetoric and cooperation have raised regional implications, particularly for India and the Indo-Pacific, though Indian officials remain cautious in their response. Overall, the summit signals a strategic shift towards closer U.S.-China engagement amidst global challenges, with potential broad geopolitical and economic impacts.