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Xi and Trump signal trade optimism amid strategic rivalries

Chinese President Xi Jinping has cautioned that unresolved tensions over Taiwan could push US–China relations onto a “dangerous trajectory,” while also acknowledging constructive progress in ongoing trade discussions during the opening session of a high-level two-day summit with US President Donald Trump in Beijing.

The summit commenced at the Great Hall of the People with an elaborate state reception, featuring an honour guard and public ceremonial displays, underscoring the diplomatic weight of Trump’s visit.

The meeting marks the first visit by a sitting US president to China since 2017, highlighting renewed geopolitical significance amid shifting global dynamics.

At the outset of the talks, Xi emphasised that stable relations between the world’s two largest economies are essential for international peace and economic equilibrium.

He stated that cooperation yields mutual benefit, whereas confrontation results in reciprocal losses, reinforcing the importance of sustained dialogue between the two powers.

US President Donald Trump in response described Xi as a “great leader” and expressed confidence that bilateral relations are entering a more constructive phase.

He suggested that the summit could represent a defining moment in global diplomacy, asserting that ties between Washington and Beijing are expected to improve significantly.

Chinese officials further indicated that preliminary economic negotiations between both sides held in South Korea had resulted in what they described as an “overall balanced and positive outcome.”

These discussions are aimed at preserving the existing trade truce and establishing structured mechanisms to support long-term trade stability and investment cooperation.

However Xi used the opening engagement to reiterate China’s firm stance on Taiwan describing the issue as the most sensitive and consequential element in US–China relations. He warned that mismanagement of the Taiwan question could result in severe escalation and destabilise bilateral ties, according to official Chinese readouts.

Following the initial discussions Trump did not directly address questions regarding Taiwan while appearing alongside Xi at the Temple of Heaven, a UNESCO World Heritage site, where the two leaders also participated in a ceremonial visit.

U.S. President Donald Trump and Chinese President Xi Jinping stand together as they tour the Temple of Heaven in Beijing, China, May 14, 2026. REUTERS/Evan Vucci

China's President Xi Jinping (3rd R) and US President Donald Trump

China's President Xi Jinping (3rd R) and US President Donald Trump

The leaders also exchanged perspectives on several major international crises, including developments in the Middle East, the ongoing situation in Ukraine, and tensions on the Korean Peninsula, as reported by Chinese state media.

The US delegation includes prominent business figures such as Elon Musk and Nvidia CEO Jensen Huang, reflecting the significant commercial dimension underpinning the visit. Trump has signalled that expanding American market access in China across sectors such as agriculture, aviation, and energy remains a key priority.

Nvida CEO Jensen Huang departs after a welcome ceremony with President Donald Trump and China's President Xi Jinping at the Great Hall of the People, Thursday, May 14, 2026, in Beijing. (AP Photo/Mark Schiefelbein)

Elon Musk departs after a welcome ceremony with President Donald Trump and China's President Xi Jinping at the Great Hall of the People, Thursday, May 14, 2026, in Beijing. (AP Photo/Mark Schiefelbein)

During the meeting Trump introduced senior executives to Xi, who reaffirmed that China’s policy of opening up would continue to expand, suggesting potential avenues for deeper economic engagement between the two countries.

Despite diplomatic engagement, analysts observe a notable shift in the balance of global influence compared to Trump’s earlier visit, with China now occupying a more assertive strategic position amid domestic and economic pressures facing the United States.

Trade negotiations remain central to the agenda, with Washington seeking to reduce its trade deficit and secure greater access for key exports, while Beijing continues to advocate for relaxation of US restrictions on advanced semiconductor technologies and high-end chip manufacturing equipment.

Beyond economic matters, Washington is also expected to encourage Beijing to play a more active role in de-escalating tensions surrounding the Iran conflict, though analysts remain doubtful given China’s longstanding strategic and energy ties with Tehran.

Taiwan continues to represent the most sensitive and high-stakes issue in the bilateral relationship, with the United States maintaining its legal obligations to supply defensive capabilities to the island despite the absence of formal diplomatic ties.

A reciprocal visit by Xi Jinping to the United States is reportedly under consideration for later this year, which would mark his first visit since Trump’s return to office in 2025, potentially reinforcing continued high-level diplomatic engagement between the two global powers.



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