WSJ What’s News (PM Edition)

Episode: What Xi’s New Playbook for Trump Means for U.S.-China Trade
Date: October 24, 2025
Host: Alex Osila
Key Guest: Ling Ling Wei (WSJ Chief China Correspondent)

Episode Overview

This episode dives into the evolving diplomatic tactics of Chinese leader Xi Jinping ahead of an upcoming summit with President Trump, with a focus on shifting U.S.-China trade relations and China’s strategic use of rare earth exports. Additional segments address Intel’s business challenges and high-level maneuvering among major technology and defense players.

Main Segment: Xi Jinping’s New Strategy Toward Trump

Key Theme

Ling Ling Wei analyzes how Xi Jinping has overhauled China’s approach to U.S. relations under Trump, moving from a reactive to a more proactive and personally tailored playbook, especially on trade, rare earth materials, and summit diplomacy.

Discussion Highlights

• China’s Shift in Diplomatic Tactics (02:35–03:32)

  • In Trump’s first term, Xi and the Chinese government were often reactive, struggling to keep up with Trump’s unpredictable moves and pressure.

  • In the second term, Xi adopted a dynamic blend:

    • Appeasing Trump’s personal preferences
    • Asserting Chinese interests more aggressively (e.g., pushing back on U.S. policies considered harmful)
    • A “mixture of pressure and appeasement.”

  • Quote (Ling Ling Wei):

    “During Trump's first term, China was constantly in this very reactive posture... During the second term, the Chinese embraced a playbook that helped... break this very reactive posture and this involves Xi Jinping really catering to President Trump's personal likings and at the same time be very assertive and aggressive in terms of hitting back at... US Policy the Chinese leadership considers harmful. So it's a mixture of pressure and appeasement.”
    (02:35–03:32)

• Rare Earth Minerals as Leverage (03:32–04:08)

  • China’s dominance in rare earths and recent strict export controls serve as a powerful new tactic to gain leverage ahead of the summit.

  • The move is strategic, sending a clear signal to Washington and shaping the negotiating table.

  • Quote (Ling Ling Wei):

    “Earlier this month, China dramatically tightened their control over those minerals. It's also Xi Jinping's way of trying to gain leverage over Trump before this very crucial meeting in South Korea next week.”
    (03:44–04:08)

• Expectations for the South Korea Summit (04:08–05:41)

  • Fragility of U.S.-China Relationship: Despite a current trade ceasefire, tensions are high.

  • Likely Outcome: Extension of the trade truce, continued rare earth exports from China; both sides would avoid new tariffs, but full trust is lacking.

  • Risks:

    • China’s hardball tactics are stirring concerns in the U.S., Europe, and Asia about China’s reliability.
    • Aggressive moves from Beijing might embolden “China hawks” in Washington eager for a tougher stance.
    • China is keen to sidestep these more hardline U.S. policymakers.

  • Quote (Ling Ling Wei):

    “The risk of China overplaying its hand definitely is rising. The most recent rare earth measures from Beijing stirred up huge reactions, not just from the United States, but also in Europe and Asia. Because everybody was wondering if China is reliable anymore. And China's heavy handed display could embolden the very hardliners in Washington.”
    (04:45–05:41)

Market Brief: U.S. Index Hits, Intel’s Challenges, and Tech Manoeuvring

Stock Market Snapshot (05:50–06:34)

• Major U.S. indexes (Dow, S&P 500, Nasdaq) notch record highs, buoyed by lower-than-expected inflation data.

Intel: “Too Important to Fail?” (06:51–09:44)

Guest: Asa Fitch, WSJ Heard on the Street

• Intel’s Recent Developments:
  • Unexpected Q3 profit after long losses
  • New strategic investments from Nvidia and government/SoftBank
• Underlying Troubles:

  • Challenges in outpacing rivals TSMC and Samsung

  • Need for more than just funding: real fundamental turnaround and execution required.

  • Risks that Intel is being rewarded before it has delivered results under new leadership.

  • Quote (Asa Fitch):

    “Investors are giving Intel a lot of cash right now, which is great for Intel. Intel needs money. It's been losing money for a long time, but the fundamental problems with the business are still there.”
    (07:34–08:05)

  • Competitive Landscape:

    • Even with new chipmaking advances, competitors are not standing still; intense race continues.
    • For Intel to win, TSMC would have to stumble—an unlikely scenario, according to Fitch.

  • Quote (Asa Fitch):

    “The thing that would really help intel would be if TSMC really stumbled. And there's no real evidence that TSMC is going to stumble. Nobody is sitting still and letting intel catch up. Everybody's moving forward. So intel doesn't need to just catch up. It needs to move a lot faster than its competition.”
    (08:50–09:08)

Defense and OpenAI Updates (09:49–12:27)

• Defense:

  • Early discussions in the White House and Navy to develop a “Golden Fleet”—modernizing warships to counter China.
  • President Trump’s involvement noted.

• Legal & Political:

  • New York AG Letitia James pleads not guilty to mortgage fraud charges, denounces Trump’s role in the legal action.

• OpenAI’s Expansion Tactics:

  • CEO Sam Altman’s aggressive deal-making is tying top chip and cloud providers (Nvidia, Broadcom, AMD, etc.) to OpenAI’s ambitions—often by leveraging fear of missing out among rival companies.

  • Quote (Berber Jin):

    “He has these natural qualities of a deal maker and a lot of these deals come down to very basic element of human psychology, the fear of missing out. ... What he's done is independently tied all of these companies to OpenAI, having them compete against one another. It very much is this kind of dance where he's daring each player to go bigger, promising them if they buy into his vision, they could end up making a lot of money.”
    (11:28–12:27)

Memorable Quotes & Key Moments

| Timestamp | Quote/Highlight | Speaker | |-----------|----------------|-----------| | 02:35 | “During Trump's first term, China was constantly in this very reactive posture... So it's a mixture of pressure and appeasement.” | Ling Ling Wei | | 03:44 | “Earlier this month, China dramatically tightened their control over those minerals. It's also Xi Jinping's way of trying to gain leverage over Trump...” | Ling Ling Wei | | 04:45 | “The risk of China overplaying its hand definitely is rising.... And China's heavy handed display could embolden the very hardliners in Washington.” | Ling Ling Wei | | 07:34 | “Investors are giving Intel a lot of cash right now, which is great for Intel. Intel needs money... but the fundamental problems with the business are still there.” | Asa Fitch | | 08:50 | “The thing that would really help intel would be if TSMC really stumbled. And there's no real evidence that TSMC is going to stumble...” | Asa Fitch | | 11:28 | “He has these natural qualities of a deal maker... What he's done is independently tied all of these companies to OpenAI... promising them if they buy into his vision, they could end up making a lot of money.” | Berber Jin |

Key Timestamps

• 02:35–03:32: Ling Ling Wei on Xi’s shift in diplomatic tactics toward Trump.
• 03:32–04:08: Rare earths as a new pressure point.
• 04:08–05:41: What to expect from the Trump–Xi summit.
• 07:34–09:08: Asa Fitch on Intel’s fundamental business challenges.
• 09:49–11:28: Golden Fleet defense plans, Letitia James legal update.
• 11:28–12:27: Berber Jin on Sam Altman’s deal-making at OpenAI.

Conclusion

This episode provides a nuanced look at evolving U.S.-China relations, highlighting Xi Jinping’s adapted tactics to influence President Trump in critical trade talks. The fragility and high stakes of the relationship are underscored by China’s use of rare earth minerals and the risk of sparking further U.S. hawkishness. The episode also surveys financial market optimism, Intel’s uphill climb in the chip industry, and the behind-the-scenes competition of major tech players betting on OpenAI’s uncertain, but ambitious, future.