Managed Stability After the May 14 US-China Summit

The U.S.-China summit held on May 14 functioned as a buffer path to prevent the deterioration of relations while confirming the core conflicts between the two countries. Examining the key issues,

• The Taiwan issue is an uncompromising core issue on which China cannot make concessions, and as a matter of sovereignty, there is little room for negotiation.

• China maintains relatively friendly relations with Iran, and this diplomatic structure places constraints on China’s active participation in the U.S. pressure stance.

• In the case of the semiconductor industry, even if the U.S. partially eases regulations, because U.S.-related policy risk remains for Chinese firms, the fact that semiconductor localization and domestic substitution in China are already on track is a practical constraint that makes it difficult for Chinese firms to return to purchasing from the U.S.

However, the summit can be interpreted positively in that it served to check Iran while confirming the sustainability of the relationship despite unresolved tasks.