Trump-Xi Summit Signals Positive Direction For Global Economy, Says Academician

KUALA LUMPUR, May 18 (Bernama) -- The recent summit between United States President Donald Trump and Chinese President Xi Jinping marks a positive step towards stabilising relations between the world’s two largest economies amid heightened global uncertainty, an academician said.

Dr Lee Pei May of the International Islamic University Malaysia (IIUM) said the absence of escalating tensions following the May 14–15 summit in Beijing was itself a significant outcome for both countries and the global economy.

“I think overall the outcome looks good and pretty promising. The fact that there is no escalation of tensions between both powers actually is a good direction not only for both countries but also for the global economy,” she said during Bernama TV’s “The Nation” programme on Monday.

Lee said the summit had achieved its intended objective of repairing ties between Washington and Beijing, pointing to subsequent announcements on cooperation in trade, technology and supply chain resilience.

She noted that the tone adopted by both leaders during the summit was notably warmer and friendlier compared to their brief meeting at the APEC summit in Korea last year.

“President Trump also made reference to the deep historical ties that both countries share, and to their long-standing mutual respect. President Xi also acknowledged that both countries need to cooperate rather than engage in confrontation,” she said.

Lee, who is also an Assistant Professor at IIUM’s Department of Political Science and Madani Studies, said such messaging was important at a time when the international political environment remained highly volatile due to trade disputes and ongoing regional conflicts.

She said the reaffirmation of a trade truce between both countries would help restore confidence among investors and businesses worldwide, many of whom had previously held back investments due to uncertainties arising from tariffs and geopolitical tensions.

“There is this affirmation that they will continue to have a trade truce, and it is very important for the global economy.

“The purpose of the summit actually is to stabilise the relation and probably aim to set the direction of future US-China relations,” she said.

Lee also highlighted proposed mechanisms such as the US-China Board of Trade and the US-China Board of Investment as important platforms for managing disputes and facilitating dialogue on trade and investment issues.

She said the Board of Trade would likely focus on tariff reductions for non-sensitive goods, while the Board of Investment could help resolve market access and business disputes.

Commenting on broader geopolitical implications, Lee said improved relations between Washington and Beijing would provide countries like Malaysia with greater diplomatic flexibility amid intensifying competition between major powers.

“Malaysia, we are a country that adheres strictly to neutrality, and it has been our long-standing policy to remain neutral and not picking sides,” she said.

She added that warmer ties between the US and China could ease pressure on smaller nations that often find themselves navigating between competing geopolitical interests.

She said the mild tone adopted by both leaders during the summit suggested a mutual understanding that tensions should not be allowed to escalate further.

-- BERNAMA