By Yin Hua, Vision Times
On Feb. 4, U.S. President Donald Trump and Chinese leader Xi Jinping held another lengthy phone call, discussing sensitive issues including trade, Taiwan, energy, and regional security. On the same day, Hong Kong conglomerate CK Hutchison launched international arbitration after Panama revoked its port operating concession near the Panama Canal. Two days earlier, Washington unveiled a new strategic plan to secure critical minerals and lessen dependence on Beijing.
At first glance, these appear to be separate developments. But in reality, they reflect a new phase of major-power competition in which high-level communication and strategic confrontation are unfolding side-by-side, analysts note.
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Trade and energy commitments
Trump wrote on his social media platform Truth Social that the discussion covered trade, arms control, his planned April visit to China, the Taiwan issue, the Russia–Ukraine war, the Iran situation, and China’s increased purchases of U.S. oil, natural gas, and agricultural products.
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He specifically noted that Beijing was considering raising U.S. soybean purchases to 20 million tons this season, with a commitment to reach 25 million tons next season. The news immediately pushed U.S. soybean futures higher. Trump concluded that both sides recognized the importance of maintaining stable U.S.–China relations and expressed optimism about bilateral engagement during his next three-year term.
Beijing’s official readout placed far greater emphasis on Taiwan. China’s Foreign Ministry stated that Xi told Trump the Taiwan issue is the “most important and most sensitive” matter in U.S.–China relations, urging Washington to handle arms sales to Taiwan with caution.
Taiwan on the forefront
In December 2025, the Pentagon and the Defense Security Cooperation Agency announced a Taiwan arms package worth $11.1 billion, the largest single notification on record. The deal included rocket systems, self-propelled artillery, anti-armor missiles, drones, and command systems, widely seen as a major step toward institutionalizing U.S.–Taiwan security cooperation.
“The Wall Street Journal” reported that on the same day as the Trump–Xi call, CK Hutchison announced that its subsidiary had initiated international arbitration under International Chamber of Commerce (ICC) rules against the Panamanian government.
The move challenges Panama’s Supreme Court ruling that invalidated CK Hutchison’s port concession contract at both ends of the Panama Canal.
Panama’s top court ruled last week that the nearly 30-year concession was “unconstitutional and invalid.” While the ports are not part of the canal itself, they sit at the entrance to one of the world’s busiest waterways. Roughly 5 percent of global trade passes through the Panama Canal, underscoring its enormous strategic and economic significance.
Observers widely view the ruling as aligned with Trump’s broader effort to weaken China’s influence in the Western Hemisphere. China’s State Council Hong Kong and Macau Affairs Office strongly condemned the decision as “absurd,” insisting that Hong Kong companies’ legitimate rights should not be politicized.
Legal experts noted that while CK Hutchison cannot appeal the court ruling, arbitration may provide a buffer period to preserve operating rights. The dispute also casts uncertainty over a $23 billion transaction in which CK Hutchison planned to sell global port assets to a consortium led by BlackRock and the Mediterranean Shipping Company. The Panama ports are widely considered the most critical assets in that deal.
Washington zeroes in on rare earths
On Feb. 2, Trump announced the creation of a roughly $12 billion “U.S. Strategic Critical Minerals Reserve,” known as Project Vault. The initiative aims to secure supplies of key minerals through a government-led stockpiling system, protecting the stability of America’s industrial supply chains.
The U.S. Export-Import Bank will provide up to $10 billion in loans, alongside approximately $2 billion in private capital. Some minerals will be supplied by government-equity mining firms, while major U.S. corporations such as Boeing, General Motors, and Google will be incorporated into the procurement system.
Emerging rare earth and magnet producer USA Rare Earth has reportedly secured potential government funding of $1.6 billion. Experts say the strategy may not fully replace China-dominated supply chains in the short term, but it provides stable buyers, price buffers, and strengthens Washington’s ability to intervene in strategic resource sectors.
For decades, the U.S. has relied heavily on China for rare earths, gallium, and other minerals essential to semiconductors, automobiles, and aerospace. Project Vault is therefore seen as part of Trump’s broader global strategic repositioning.
A new era of competition
Economist Li Hengqing told Vision Times that global politics is entering a multipolar competitive stage resembling the “Spring and Autumn and Warring States period,” with countries pursuing comprehensive rivalry based on national interests. Li stressed that recent visits to China by Western leaders do not mean Beijing has become a “hot commodity.” Instead, he argued that Trump’s core objective is to “rebuild the world order.”
In Trump’s view, Li said, many countries, including U.S. allies, have “taken advantage of America” for decades without bearing corresponding costs, making the old order unsustainable. This approach has strained relations with traditional allies such as Germany, Britain, France, and Canada, but Li argued its essence is forcing nations to redefine their responsibilities.
“If you don’t put America at the center but still want long-term profit, then America will choose to withdraw,” he said. Li further emphasized that the fundamental ideological and structural differences between Western democratic systems and the CCP regime make true long-term coexistence impossible. “Incompatible systems determine that cooperation can only be temporary and instrumental,” he said.
He cited energy politics, such as Venezuela’s oil trade, as an example of how power-for-profit exchanges expose systemic corruption and rent-seeking, reinforcing Western caution toward Beijing.
Li concluded that the world is now in a transitional stage: The old order is breaking down, while a new one has not yet been established. In the long run, he believes the international system will ultimately return to one based on rule of law, democracy, and mutual respect.
Editorial note: Views expressed in this article are the opinions of the author and do not necessarily reflect the views of Vision Times.
