Latest update May 25th, 2026 12:35 AM
Trump, Xi set for Beijing talks with trade truce, Iran war at stake
(Reuters) – U.S. President Donald Trump heads into a series of meetings with China’s Xi Jinping in Beijing on Thursday, aiming to secure economic wins, maintain a fragile trade truce and navigate thorny issues such as the Iran war and arms sales to Taiwan.
With approval ratings badly dented by his war in Iran, Trump’s hotly anticipated trip to China – the first by a U.S. president to America’s main strategic rival since his last visit there in 2017 – has taken on added significance.
Joining him on the trip is a group of CEOs including Elon Musk and Nvidia’s CEO Jensen Huang, a late addition who boarded Air Force One during a refuelling stop in Alaska en route to the Chinese capital at Trump’s request.
Gantry cranes stand near stacked shipping containers at Yangshan Port outside Shanghai, China, May 7, 2026. REUTERS/Go Nakamura
Many of those executives, including Huang and Musk, are seeking to resolve issues with China, and Trump has said he will urge Xi to “open up” China to U.S. business.
But the power dynamic has shifted since Trump’s last visit in 2017 when China went out of its way to lavish Trump and buy billions in U.S. goods, said Ali Wyne, senior advisor for U.S.-China relations at International Crisis Group.
Back then “China was trying to persuade the United States of its growing status… This time around it’s the United States, unprompted, of its own volition, that is acknowledging that status,” Wyne said, pointing out Trump revived the term ‘G2’, referring to a superpower duo, when he last met Xi on the sidelines of an APEC meeting in South Korea in October.
This week’s meetings will provide plenty of face time between the leaders: they are scheduled to hold talks at The Great Hall of the People, tour the UNESCO heritage site Temple of Heaven and attend a state banquet on Thursday, before taking tea and lunch together on Friday, according to the White House.
But Trump enters the talks with a weakened hand.
U.S. courts have hemmed in his ability to levy tariffs at will on exports from China and other countries. The Iran war has also boosted inflation at home and escalated the risk that Trump’s Republican Party will lose control of one or both legislative branches in November’s midterm elections.
TAIWAN
But for Xi, U.S. arms sales to Taiwan, the democratically governed island claimed by China, will be a top priority.
China reiterated on Wednesday its strong opposition to the sales, with the status of a $14-billion package awaiting Trump’s approval still unclear. The United States is bound by law to provide Taiwan with the means to defend itself, despite a lack of formal diplomatic ties.
“Trump doesn’t really have that many of the cards to play. But I don’t think that Trump actually sees the situation that way,” said Ronan Fu, an assistant research fellow at Taiwan’s top government think tank Academia Sinica.
“I don’t think that Trump is going to just let Beijing basically ask for whatever they want and then the US will make any concession that Beijing requests.”
Xi has a reciprocal visit tentatively planned for later this year, which would be his first visit to the United States since Trump re-took office in 2025.
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