President Donald Trump touched down in Beijing on Wednesday, kicking off the most closely watched US-China meeting in nearly a decade. Just hours later, he was sitting face to face with Xi Jinping at the Great Hall of the People, a moment the whole world had been waiting for. Trade, Taiwan, rare earths, AI chips, and a war in Iran raging through global energy markets all landed on one table.

A Presidential Visit Nine Years in the Making

This is Trump’s first trip to China since 2017, taking place after years of intensifying rivalry between the world’s largest economies and the ongoing US war with Iran. No sitting American president had set foot in Beijing during all that time, making this summit a genuinely rare moment in modern diplomacy. Three hundred Chinese children dressed in blue and white uniforms waved American and Chinese flags as Trump descended the steps of Air Force One. He was greeted by Chinese Vice President Han Zheng, who is widely seen as Xi’s envoy for diplomatic events. Trump’s airport reception was considered a rare honor that broke with usual diplomatic protocol. Xi called 2026 a “historic, landmark year” for China-US relations as he welcomed Trump at the Great Hall of the People. Trump told Xi in his opening remarks that the relationship between the two countries is going to be “better than ever before.” The two leaders met for two hours and fifteen minutes at the start of their two-day summit. The state visit was planned for the first week of April, but the meeting was postponed to May due to the 2026 Iran war. That six-week delay changed the entire mood walking into Beijing, shifting the agenda and giving China unexpected leverage at the negotiating table.

Trump Xi Beijing summit trade Taiwan AI chips 2026

What Both Leaders Brought to the Table

Before departing for Beijing, Trump said he and Xi would have a “long talk” about Iran, although he stressed that trade would remain the central focus of the visit. He also said his “very first request” to Xi would be to open up China for American businesses. Trump arrived in Beijing accompanied by a host of corporate executives, hinting at his top priorities when meeting with Xi, which include tech, aircraft and agriculture. The delegation that stepped off Air Force One with the president included:

• Apple CEO Tim Cook
• Tesla and SpaceX CEO Elon Musk
• Nvidia CEO Jensen Huang
• BlackRock CEO Larry Fink
• Boeing CEO Kelly Ortberg
• Secretary of State Marco Rubio
• Defense Secretary Pete Hegseth

Huang’s inclusion deserves attention on its own. Nvidia CEO Jensen Huang was not on the White House’s published list as of Monday. After media coverage flagged his absence, Trump called Huang directly and invited him to join; Huang flew to Anchorage and boarded Air Force One during a refueling stop. His addition was the clearest single signal of how central AI chip policy has become to the summit’s agenda. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held an hours-long preparatory meeting in Seoul, South Korea, focused on economic and trade issues. Beijing later described it as “candid, in-depth and constructive.” Defense Secretary Pete Hegseth is making history with this trip, becoming the first secretary of defense to accompany the US president on a state visit to China since Richard Nixon’s visit in 1972.

The Rare Earth and Chip War That Never Really Stopped

Of all of the tools in China’s trade war arsenal, perhaps its most potent is its grip over rare earths, the materials that underpin technologies ranging from semiconductor chips to F-35 fighter jets. China is the world’s rare-earths powerhouse, dominating around 85 percent of processing and more than 90 percent of magnet production. Beijing especially commands the separation of heavy rare earths, none of which currently occurs in the United States. China flexed that muscle last year after Trump unleashed sweeping tariffs. Among other countermeasures, Beijing announced its own rare earth export restrictions, setting the stage for multiple rounds of negotiations that ultimately culminated in a one-year trade truce that will expire in the fall. **Analysts warn that even a 10 percent disruption in rare earth-dependent sectors could trigger $150 billion in global losses within a year.** On semiconductors, the battlelines are equally sharp. The US banned Nvidia’s H20 chip from Chinese sales in April 2025, costing Nvidia a $5.5 billion inventory charge. The Trump administration reversed course in July 2025, permitting H20 sales, then licensed more advanced H200 chips for China in December. The constant policy reversals have left global technology firms unable to plan. China’s AI advances have closed the gap with the US, according to the annual AI report by the Stanford Institute for Human-Centered Artificial Intelligence. The US has the edge over capital, infrastructure and AI chips. But China wins in patents, publications, and physical AI, otherwise known as robotics. Xi began the talks by emphasizing that the world is “at a new crossroads.” He asked whether China and the United States can transcend the so-called Thucydides Trap and pioneer a new paradigm of major-country relations. That question hung over every handshake in Beijing.

Taiwan and Iran: The Two Flashpoints That Could Define This Visit

Xi issued a direct warning that no one in the room could ignore. Xi warned Trump that mishandling Taiwan would cause “clashes and even conflicts, putting the entire relationship in great jeopardy,” Beijing’s foreign ministry said. Xi is expected to press Trump about the United States’ close relationship with Taiwan. In December, Washington announced an $11.1 billion arms sale to Taipei as part of the White House’s efforts to help Taiwan outmatch China’s military capabilities. Beijing has repeatedly denounced these actions, as China does not recognize Taiwan’s sovereignty. Trump is yet to sign off on the latest arms package to Taiwan worth $14 billion, which has been approved by Congress. Then there is Iran. Iran’s closure of the Strait of Hormuz and Washington’s competing blockade of Iranian ports have left Chinese ships stranded and severely affected China’s crude oil imports, half of which are shipped from the Middle East. Analysts expect Washington to press Beijing to use its influence over Tehran, particularly because China remains the largest buyer of Iranian oil, purchasing more than 80 percent of Iran’s shipped crude exports. US officials have suggested that China should play a greater role in pushing Iran to reopen the Strait of Hormuz, but analysts say Beijing will require concessions from the US, likely over Taiwan, if it were to aid in resolving the crisis. **Any diplomatic help that China does offer is likely to come with strings attached, on trade or even an issue that Beijing regards as existential: its claims of sovereignty over Taiwan.** Trump and Xi discussed the “Middle East situation” during their high-stakes talks on Thursday, Chinese state media reported. The leaders “exchanged views on major international and regional issues including the Middle East situation,” state news agency Xinhua said. Trump and Xi also spoke on the war in Ukraine.

The World Is Watching and Waiting for Answers

Southeast Asian governments are watching closely for any dramatic shift in US tariffs on Chinese goods relative to those on their own exports. “If tariff levels on Chinese exports drop, the business rationale for moving production from China to countries like Vietnam will also drop,” said one Singapore-based analyst. The prospect of a G2 raises concerns for allies of the US, who fear that Washington and Beijing could cut them out of important decisions. Europe is especially worried about a trade deal that cuts it out and accelerates its declining position of strength on the world stage. Xi is expected to reciprocate Trump’s trip with a visit to the US. The two leaders could also meet alongside APEC and G20 events in China and the US later in the year. Cornell University professor Eswar Prasad told CNBC that the entire world is hoping the two leaders can reach agreement on at least a subset of issues and find ways to prevent any further escalation of tensions on the remaining ones. The outcome could have major ramifications for global trade, geopolitics and “the very survival of the rules-based order.” A contentious summit that deepens tensions could prolong economic and geopolitical volatility, crippling global trade and growth. After nine years of tariffs, chip bans, military near-misses, and the shadow of an ongoing war in Iran, two of the most powerful men on earth sat down in Beijing and tried to find a path forward. The trade truce is fragile, Taiwan remains a live wire, and rare earths still hang over every tech supply chain on the planet. But both leaders walked into the Great Hall of the People wanting, at some level, to walk out with something they could call a win. What that win actually looks like for the billions of people whose jobs, energy bills, and national security depend on what these two men decide will become clear in the hours and days ahead. What do you think? Will this Beijing summit lead to a real breakthrough or just buy time before the next crisis? Drop your thoughts in the comments below.