The US-China pact fundamentally transforms the global system.

Donald Trump announced that an agreement had been signed with China that lays out the fundamental outlines of the relationship between the two superpowers. This came four weeks after he held a one-and-a-half-hour telephone conversation with Xi Jinping.

The crucial agreement between Trump and Xi Jinping was further elaborated in the Geneva Pact by Scott Bessent and He Lifeng, and now this momentous agreement has been formalized at the London meeting.

The relationship between the U.S. and China is tending to transform, in essence, into a partnership. It is leaving behind a necessary antagonistic character and becoming a search for solutions to the basic and structural equation between the two superpowers, especially in terms of savings and investment.

The two key measures of the formal London agreement are highly revealing confidence-building initiatives: the People's Republic pledges to accelerate exports of "rare earths" to the US, which are unique in that they allow for dual use, both civilian and military.

For its part, the US would lift restrictive measures taken against China regarding the transfer of American high-tech products, such as Nvidia's advanced products.

The relationship between China and the US is characterized by the following data: manufacturing GDP represents 16% of global GDP, but Chinese manufacturing accounts for 28% of the total, while US manufacturing accounts for only 11%.

Soon, the US will be the G7 country with the lowest manufacturing output, while the People's Republic is the world's largest manufacturing power. This structural pattern occurs in a global economy fully integrated by the technological revolution.

In terms of consumption, the exact opposite occurs: it represents 72% of global GDP, but climbs to 82% in the US and only 53% in China.

China's GDP accounts for 19% of global GDP, but is 29% of manufacturing GDP, while it falls to 13% of global consumption.

In the U.S., GDP represents 26% of global GDP, but only accounts for 16% of global manufacturing, while it climbs to 28% of international consumption.

This is the greatest economic imbalance of our time, and it represents a decisive pattern of the current global system, now instantly guided by artificial intelligence.

Michael Pettis says that the growth of manufacturing in a given country depends on the size of its trade surplus. This is necessarily linked to a persistently low level of consumption.

Pettis adds that reversing this situation requires modifying international trade flows, which requires transforming the equation between savings and investment in the world's two largest economies. But the primary emphasis must be placed on the People's Republic, which has an extraordinary trade and current account surplus of US$1 trillion in 2024, or 13% of GDP.

These structural data reveal the full force of an unstoppable export-led manufacturing machine in China, flooding world markets and threatening to destroy domestic industries.

This central fact of the times is accompanied by a necessary corollary: the historic feat of reversing this situation can only be achieved through the cooperative and joint action of the two superpowers, the United States and China. What is astonishing is to realize that this is precisely what is happening right now, thanks to the lucid and courageous decision of Donald Trump and Xi Jinping, implemented since the Geneva Summit by Scott Bessent and He Lifeng. "To have faith is to be able to see the world as a system of forces."

What's at stake right now is a fundamental change in the rules of the game for international trade, with the explicit goal of deeply and irreversibly integrating the world's two largest economies and, in doing so, unleashing the immense potential of artificial intelligence.

Everything indicates that we are in a new historical era based on the strategic validity of the principle of instantaneousness, which dismisses references to space or time as an anachronism.

Trump is expected to travel to China in early 2026 and host Xi Jinping in Washington in the second half of the year.

Between now and then, the two superpowers should work out the fundamental details of two central pacts to transform the economic equation of savings and investment between the two superpowers, probably in the form of a new Bretton Woods agreement. Then, what is truly decisive and transcendental is a high-tech partnership, perhaps organized in the form of a consortium consisting of Nvidia, DeepSeek, Alibaba, Google, and Huawei, to jointly exploit the immense universe opened up by artificial intelligence.

“The world is moving toward synthesis and fusion. The time for unification has arrived. The world is moving toward a planetary order,” says Ernst Jürgen.