Much to the relief of markets, US President Donald Trump and Chinese President Xi Jinping finally met on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea. The friendly meeting indicates both sides prefer a mode of “controlled” confrontation. The bilateral relationship remains confrontational, nonetheless. Some give and take on trade certainly helps to de-escalate tensions, but China has no illusions about the US’ fundamental hostility. Trump prides himself on his…

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