Asia Communique
Trump, Xi Signal Thaw With Call on TikTok, Trade, and Talks | Taiwan Envoy Meets Trump’s Secret Intel Board | Taipei Tells Trump: “We’re Not Freeloaders” | China Shifts Canola Orders to Australia
Asia Communique: Daily Briefing
Trump and Xi Hold Rare Call, Eyeing a Reset
Donald Trump and Xi Jinping spoke by phone this week in one of the most substantive U.S.–China exchanges since the start of Trump’s second term. The call touched on familiar flashpoints — trade, tech, and security — but both sides tried to signal space for compromise.
The headline item was TikTok. Trump said the two had struck a deal “in principle” to allow the app to keep operating in the U.S. But the details remain murky. Beijing insists any agreement must comply with Chinese law and protect ByteDance’s interests. The biggest unanswered question is who controls TikTok’s algorithm and user data.
They also agreed to meet in person — first at the APEC summit in South Korea next month, and then with a Trump visit to China penciled in for early 2026. For now, those are intentions rather than hard dates, but it marks a shift from the freeze of recent months.
On trade, both sides pledged to keep the tariff war from escalating further. Trump emphasized “progress” in broad terms, while China warned against new unilateral restrictions. No tariffs were lifted, but the tone was more about prevention than punishment.
Other issues — fentanyl, Russia’s war in Ukraine, intellectual property, and broader technology controls — were on the agenda but yielded no specifics.
What to Watch
The fate of TikTok’s algorithm and ownership structure: the core of whether this deal holds.
Whether tariff talks move beyond rhetoric to concrete rollbacks.
How Chinese state media frames Trump’s planned visit — a clue to how far Beijing is willing to go in reopening ties.
Politics & Security
Taiwan envoy meets Trump’s intelligence advisers
Alexander Yui, Taiwan’s de facto ambassador to the United States, privately met members of the President’s Intelligence Advisory Board (PIAB) in Washington in early September. The PIAB is a little‑known group that has emerged as an influential node in President Trump’s national‑security apparatus after mass firings at the National Security Council and other agencies. U.S. officials told Reuters the encounter was not a formal PIAB session but an informal conversation arranged by a mutual contact. Even so, national‑security officials see the board’s increasing activity as significant, and the meeting represented one of the highest‑level Taiwan–U.S. contacts during Trump’s second term.
Taiwan tells Trump and the U.N. it isn’t a freeloader
In an interview with Foreign Policy, Yui insisted that Taiwan “is not a freeloader” and invests heavily in its own defense. He noted that President Joe Biden had approved more than a dozen arms sales to Taiwan during his first term, while the Trump administration’s approach has been more ambivalent. Trump denied a request for President Lai Ching‑te to transit through New York for the U.N. General Assembly and cancelled a planned meeting with Taiwan’s defense minister earlier this year. Separately, news reports say Trump declined to approve more than US$400 million in military aid for Taiwan; Washington hopes to replace the package with a weapons‑sales agreement. Taiwan’s foreign ministry responded that it remains committed to strengthening its self‑defense capabilities and will continue to work with the United States to deter aggression and ensure regional stability
Taliban frees detained British couple
Qatar mediated the release of Peter and Barbara Reynolds, British charity workers who had been detained by Afghanistan’s Taliban authorities since February. The elderly couple said they were treated well; their family thanked both the Qatari and British governments for securing their freedom. United Nations experts had raised concerns about the pair’s health during detention.
Kabul rejects calls to retake Bagram Airbase
Former U.S. president Donald Trump recently suggested that the United States should reclaim Afghanistan’s Bagram airbase. A Taliban foreign‑ministry official responded that Kabul was open to diplomatic engagement but would not allow American forces back onto Afghan soil. Bagram was once the nerve‑center of the U.S. “war on terror” but was abandoned when U.S. troops withdrew in 2021.
India cautious after Saudi‑Pakistan defense pact
India reacted guardedly to Saudi Arabia’s mutual‑defense pact with Pakistan. New Delhi’s foreign ministry said it trusted Riyadh to consider “mutual interests and sensitivities.” Analysts warned that the agreement could provide Pakistan with a de facto nuclear umbrella; nevertheless, India noted that its strategic partnership with Saudi Arabia includes energy, trade and technology cooperation
Economy & Business
China likely to hold loan prime rates steady
Market participants expect the People’s Bank of China to leave its one-year and five-year loan prime rates at 3% and 3.5% when it sets them next Monday. A Reuters survey found that officials are cautious about adding stimulus despite signs of a slowing economy, and analysts anticipate only incremental easing later this year to ensure the government’s roughly 5% growth target is met.
U.S. hikes H-1B visa fees
The Trump administration announced that U.S. employers will have to pay $100,000 per year for each H-1B worker. The change will hit the technology sector particularly hard since more than 70% of H-1B beneficiaries last year were from India and roughly 12% were from China. Critics warn the measure could drive talent overseas, while supporters say it protects American jobs.
Beijing turns to Australian canola
Amid a trade dispute with Canada, state-owned trader COFCO has reportedly purchased up to nine cargoes of Australian canola, equivalent to roughly 540,000 tons or about 8% of China’s canola imports last year. Beijing imposed steep anti-dumping duties on Canadian canola earlier this year and is diversifying suppliers; the Australian shipments are scheduled to load between November and January.
China probes live-streaming platform Kuaigou
China’s State Administration for Market Regulation has opened an investigation into Kuaigou, the e-commerce arm of video-sharing app Kuaishou, citing widespread false marketing and counterfeit goods in the live-streaming industry. The regulator said the probe aims to protect consumers and small businesses, and Kuaigou pledged to improve its compliance procedures.
Indonesia encourages citizens to hold dollars domestically
Indonesia is developing incentives to persuade citizens to keep their U.S. dollars in domestic banks. Finance Minister Purbaya Yudhi Sadewa said many Indonesians send money abroad, and a market-based scheme could channel dollar savings toward national projects.
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