Donald Trump heads into his summit with Xi Jinping with a clear message: this meeting is about trade, not war. Despite the ongoing US military conflict with Iran dominating headlines, the president has signaled that expanding American exports to China and securing better market access for US firms sit at the top of his agenda.
With tariffs between the two largest economies exceeding 100% over the past year, there’s a lot of commercial wreckage to sort through.
What’s actually on the table in Beijing
The summit touches on several major themes beyond just tariff rates. Supply-chain security, advanced technology regulations, and broader market access for American companies all feature in the discussions.
China, for its part, appears to want something slightly different from the conversation. Beijing’s priority is de-escalating the sanctions regime and establishing a more predictable economic relationship with Washington.
Both sides are already claiming wins. China has committed to ordering 200 Boeing jets, a concrete gesture that gives Trump a tangible number to point to when cameras roll.
The Iran elephant in the room
Trump’s explicit statement that trade, not the Iran war, would dominate discussions is notable precisely because of what it reveals about the diplomatic balancing act. The US conflict with Iran has created pressure on multiple fronts, and China’s relationship with Tehran adds complexity to any bilateral conversation.
Assurances regarding military support for Iran have reportedly been exchanged during the diplomatic lead-up, though no verifiable actions have been confirmed.
What this means for markets and investors
The fact that renewed tariffs are expected in 2025 suggests neither side views this summit as a finish line. Investors in sectors with heavy China exposure, from agriculture to semiconductors to aerospace, should watch the post-summit rhetoric closely.
One area conspicuously absent from the reported agenda is digital assets. No new commitments regarding crypto or blockchain regulation emerged from the discussions.
