Trump-Xi Summit Preview: Five Key Issues on the Agenda

President Donald Trump is preparing to host Chinese President Xi Jinping in Washington D.C. later this week for a high-stakes summit aimed at stabilizing bilateral relations. While optimism runs higher among Chinese observers than their American counterparts following Beijing’s successful retaliation against the Trump administration’s April 2025 tariffs, Washington’s list of concerns has expanded, notably regarding the artificial intelligence race.

Xi will make his first state visit to the U.S. since the Obama administration, a trip expected to mirror the dynamics of Trump’s one-and-a-half-day visit to Beijing in May. As the two leaders meet, several critical issues are dominating discussions among policymakers and business leaders.

Trade Relations and Tariff Truce

The immediate priority is extending a trade truce set to expire in November. During a meeting in South Korea last fall, Trump and Xi agreed to suspend rare earth export controls and retaliatory tariffs for a year. By May, Beijing had pledged to increase purchases of U.S. agricultural products and Boeing aircraft while establishing new mechanisms for trade and investment cooperation.

Zhou Bo, a senior fellow at Tsinghua University’s Center for International Security and Strategy, described the May summit as a significant shift, noting that the concept of “constructive strategic stability” signaled a rare acknowledgment of China as a peer power. Recent data indicates China has purchased nearly half of its committed 25 million tons of American soybeans for the year. However, Boeing CEO Kelly Ortberg suggested that any fulfillment of the 200-jetliner order would likely occur incrementally rather than as a single deal.

Chad Brown of the Peterson Institute for International Economics noted that China currently holds significant leverage due to its dominance in rare earths and permanent magnets, limiting the scope for major U.S. demands until that imbalance is addressed.

Artificial Intelligence Governance

Chinese AI capabilities have narrowed the gap with U.S. rivals, prompting Washington to voice alarm over the risks of unchecked technological development. U.S. Treasury Secretary Scott Bessent revealed over the weekend that senior negotiators discussed establishing a “U.S.-China AI Dialogue” and a notification system for AI incidents. His counterpart, Chinese Vice Premier He Lifeng, is currently in the U.S. for preparatory talks.

While general dialogue similar to previous AI safety discussions in Geneva is possible, details remain sparse. A source familiar with Washington’s thinking indicated that U.S. concerns have intensified recently, with a focus on preventing China from empowering malicious actors. Discussions are not expected to center on China purchasing Nvidia H200 chips.

Business Leadership Attendance

On the commercial front, a notable list of U.S. executives, including Jeff Bezos, Elon Musk, Sundar Pichai, and Jensen Huang, are invited to Trump’s state dinner. However, officials reported that no visa applications have been received from Chinese business counterparts as of Friday. The planned “Board of Investment,” proposed in May, has also seen little concrete detail emerge.

Orville Schell of the Asia Society emphasized that businesses on both sides need geopolitical assurances to feel secure investing across the Pacific, a challenge in the current climate.

The Iran Conflict

Tensions surrounding the war between the U.S. and Iran are expected to overshadow discussions on Taiwan. Beijing has positioned itself as a facilitator for ceasefire talks rather than a direct intervener. Iranian Foreign Minister Abbas Araghchi met with Chinese diplomat Wang Yi in Beijing last week to seek support.

President Trump has expressed openness to meeting Iranian President Masoud Pezeshkian on the sidelines of the UN General Assembly. Daniel Kritenbrink of The Asia Group noted that Washington will urge Beijing to avoid military assistance to Tehran and to use its influence to encourage a resolution. While Xi is likely to reiterate opposition to U.S. arms sales to Taiwan, the issue is expected to take a backseat to the urgent Middle East conflict.

Global Economic Implications

This summit is part of a broader effort to manage bilateral relations, with potential for two additional meetings this year if successful. However, structural issues persist, including weak domestic demand in China and continued U.S. reliance on Chinese manufacturing for critical components.

Schell warned of “summit fatigue,” suggesting that both nations need to become more flexible. He highlighted growing global anxiety over China’s export surge, citing impacts on jobs in sectors like the German automotive industry. As China cements its role as the world’s manufacturer, questions remain about why both Beijing and Washington continue to adopt aggressive postures despite their economic interdependence.