U.S. and China Agree to Pause Trade War and Negotiate for 90 Days
About the People Mentioned
HONG KONG
Hong Kong is a Special Administrative Region (SAR) of China, located on the south coast of the country. It was a British colony until its transfer to China in 1997, following the Sino-British Joint Declaration. Under the "one country, two systems" principle, Hong Kong enjoys a high degree of autonomy, managing its own domestic affairs, economy, and legal system, while China handles foreign and defense matters[1][2]. Hong Kong is renowned for its role as a global financial and shipping hub. It has transitioned from a manufacturing-based economy to a service-oriented economy, becoming one of the world's leading financial centers[2][4]. The region's government is structured into executive, legislative, and judicial branches, with the Chief Executive acting as the head of government[2][3]. Hong Kong's legal system is a mix of common law and Chinese customary law[3]. Key achievements include its status as a free market economy and its membership in the Asia-Pacific Economic Cooperation (APEC)[6]. Hong Kong is also among the most densely populated cities globally, with a population of approximately 7.5 million people[4][5]. The region celebrates its establishment as a SAR on July 1, 1997, and participates in international competitions under its own flag[3]. In recent years, Hong Kong has faced notable challenges, including widespread protests and discussions about its political status within China. Despite these challenges, Hong Kong remains a significant player in global finance and trade, maintaining its unique cultural and economic identity[2][6]. Its current relevance is underscored by its role in international trade and its continued status as a major financial center in Asia[4][6].
About the Organizations Mentioned
United States
The **United States** is a federal republic and a global superpower, playing a leading role in economics, military strength, technology, and governance. It is a nation of approximately 348 million people as of 2025, characterized by its diverse population and dynamic economy[8][6]. Founded in 1776 following independence from British rule, the U.S. rapidly evolved into a major world power, especially after World War II, when its technological and economic investments solidified its global dominance[4]. Today, it remains the world’s preeminent military power, with 76% of Americans recognizing this status, while about half view it as the leading economic power globally, though China is seen as a rising competitor[2][3]. The U.S. government operates through a complex system that manages federal finances, taxation, social welfare programs, and trade policies. Recent legislative changes, such as the 2017 Tax Cuts and Jobs Act and the 2025 One Big Beautiful Bill Act, have shaped the tax landscape to influence economic growth, labor markets, and federal revenue[1]. Despite challenges like rising federal deficits projected to reach 6.9% of GDP by 2027, consumer spending remains resilient, and business investment is expected to grow steadily in 2025[5]. In governance, the U.S. is rated "Free" with a score of 84/100 by Freedom House, though concerns about democratic erosion and partisan conflicts persist[6]. Public trust and satisfaction with government services fluctuate, reflecting ongoing debates about policy effectiveness and institutional competence[7]. Technologically, the U.S. maintains a critical edge, underpinning its economic and geopolitical power. Experts warn, however, that technological dominance is not guaranteed indefinitely, emphasizing the need for adaptive policies and international cooperation to sustain leadership in innovation and global affairs[4]. Overall, the United States remains a pivotal force in global business, technology, and politics, balancing historic strengths with contemporary challenges in
China
China is not an organization but a sovereign nation and the world’s second-largest economy, playing a pivotal role in global business and technology. Since initiating economic reforms in 1978, China has transformed from a largely agrarian society into an upper-middle-income country with an average GDP growth of over 9 percent per year for decades, lifting nearly 800 million people out of poverty[2]. The country’s economic model initially focused on investment and export-oriented manufacturing but is now shifting towards higher-value services, domestic consumption, and low-carbon growth to address social, environmental, and structural challenges[2]. China’s government heavily directs industrial policy, promoting domestic innovation and technological self-reliance through plans like “Made in China 2025” and the 14th Five Year Plan (2021-2025). These initiatives target advanced technology sectors such as robotics, aerospace, new energy vehicles, biopharmaceuticals, and high-tech manufacturing, aiming to replace foreign technologies with domestic alternatives and expand China’s global market presence[3]. This industrial strategy combines state subsidies, preferential policies, and strict market access controls for foreign firms, shaping a competitive environment favoring national champions[3]. Despite solid economic growth—real GDP grew by 5.4% year-on-year in early 2025—China faces headwinds including demographic shifts, slowing productivity, a cooling property market, and global trade uncertainties. Growth is projected to moderate to around 4.5% in 2025 and 4.0% in 2026, with fiscal stimulus helping to offset some challenges[1][3][6]. Externally, China remains a major global exporter, with exports outpacing GDP growth in 2025[6]. Notably, China’s governance under President Xi Jinping has tightened control over civil society, media, and minority regions, drawing international scrutiny for human rights issues and repression, especially of Uyghurs and Tibetans[4][9]. Meanwhile, Chin
