What to know about Trump-Xi summit with trade, Taiwan and Iran on the agenda :: WRAL.com

BEIJING (AP) — As Presidents Xi Jinping and Donald Trump prepare for a highly anticipated summit, both China and the United States say their ties have been broadly stable in recent months — and they are planning on keeping it that way.

But a long list of issues are at stake in one of the world’s most consequential relationship, with no easy end in sight.

Few expect major breakthroughs to the long-running frictions between China and the U.S., which range from competition in technology to the thorny question of Taiwan, whose main ally is the U.S. Ending the war with Iran is likely to be added to the agenda, with Beijing being one of the unofficial mediators in the conflict.

“On both sides there is a consensus that U.S.-China stability is important,” said Henrietta Levin, senior fellow for the Freeman Chair in China Studies at the Center for Strategic and International Studies in Washington. “Once you get past the question of stability, the ‘what’s next’ in the relationship gets a little more complicated, and so for that reason, the most likely thing to come out of the meeting is very little.”

Here’s what to know about the summit:

There may be a trade deal, but not a resolution

The China-U.S. trade war started with Trump’s first term, but turned up a notch in April last year, on Trump’s so-called “Liberation Day,” when he announced 34% tariffs on all Chinese goods. China retaliated with counter tariffs and other measures, such as restrictions on rare earth exports. Tariffs reached as high as 145% in the escalating back and forth.

The two sides, realizing the sky-high tariffs weren’t sustainable, then called for a trade truce, halting many of the punitive economic measures. The two leaders met in South Korea in October and extended the truce for another year. China promised to purchase soybeans from American farmers, while the U.S. dropped tariffs by more than half.

“China’s strategy was to promote stability by fighting back,” said Fudan University professor Zhao Minghao, an expert in international relations. “Both sides could very well issue a comprehensive trade agreement this time. But this doesn’t mean the war is over, and the agreement will have conditions.”

Last year’s trade truce did not resolve any of the bigger picture issues, and it did not mean a return to how things were. China now has a new export permit requirement for rare earth exports that it can tighten at any time.

Further, this time around, “there’s been a lack of the intensive type of engagement that has characterized past summits,” said Wendy Cutler, vice president of the Asia Society, and a former trade negotiator for the U.S.

China in April issued new regulations that built out a framework for identifying and countering foreign measures targeted at Chinese companies. Under the new rules, for example, China’s Ministry of Commerce told impacted companies, such as one petroleum refinery that bought Iranian crude oil, to ignore U.S. sanctions.

Although some say the sides could announce a continuation of the trade truce, they note they have continued to take targeted actions. “It’s a fragile truce,” said Cutler.

The White House said Sunday they are also planning to discuss creating a new “Board of Trade” to keep their countries talking on economic issues.

China’s ability to buy high-tech chips is still a thorny issue

The U.S. imposed restrictions on exports to China of advanced computer chips and related tech, such as the machines to make the chips, as early as Trump’s first term in office.

Nvidia, a California company and the leading designer of advanced chips, has pressed Trump to allow it to export them to China. Nvidia founder Jensen Huang has argued that selling the chips will build reliance on American tech for Chinese AI firms.

But the increasing list of restrictions on chip exports may only push China deeper in its drive for self-reliance. “China’s attitude has changed subtly, it seems more focused on advancing its domestic chip industry rather than continuing to rely on advanced chips from the United States,” Zhao said in written comments.

China sees Taiwan as the ‘biggest risk’ in ties with the US

Two weeks before the meeting, Chinese Foreign Minister Wang Yi said in a call with U.S. Secretary of State Marco Rubio that the bilateral relationship has remained generally stable, but Taiwan remains the “biggest risk” to their ties. China signaled again on Thursday that Taiwan would be a top priority for discussion.

Few expect a resolution to the Taiwan issue, lingering since China and Taiwan split in a civil war in 1949. While Beijing claims Taiwan, the island is a self-ruled democracy.

Tensions have only risen since Taiwan first elected Tsai Ing-wen as president in 2016. Her Democratic Progressive Party says Taiwan is functionally independent and its own sovereign state. Beijing has broken off communication with Taiwan’s government, and in recent years, started sending warplanes and warships closer to the island in almost daily drills.

The island’s current President Lai Ching-te is also from the DPP. Beijing has criticized Lai repeatedly, even depicting him as a “parasite” in propaganda imagery for its military exercises.

The U.S. is required by law to ensure Taiwan can defend itself but officially maintains a position of what has been called strategic ambiguity, leaving it a question of whether the U.S. would get involved militarily if China decided to reclaim Taiwan by force. Trump has also said recently that he discussed arms sales to Taiwan with Xi, which led to further questions of whether the U.S. would support Taiwan.

“One possibility is that China and the U.S. can take the strategy of a sort of ‘reciprocal restraint’, such as reducing the number of American arms sales to Taiwan, in exchange for fewer military exercises from the mainland aimed at Taiwan,” said Zhao.

The US wants China to put pressure on Iran

As the world awaits an end to the war in Iran that has shaken the global economy, the conflict is likely to surface in the talks.

China has openly criticized the United States and Israel over the war. In addition, given its close political and economic ties with Iran, it is seen by some as an unofficial mediator that could influence Tehran. So far, Beijing has remained cautious, preferring to not get deeply involved.

“I don’t think China has any interest in solving the problems the U.S. has created for itself in the Middle East,” Levin, of the Center for Strategic and International Studies, said.

A few days before the trip, U.S. Treasury Secretary Scott Bessent called on China to pressure Iran to open the Strait of Hormuz, and said that by buying Iranian oil, Beijing is funding terrorism.

“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Bessent said on Fox News. “Iran is the largest state sponsor of terrorism, and China has been buying 90% of their energy, so they are funding the largest state sponsor of terrorism.”

Visited 1 times, 1 visit(s) today

Related Article

Typhoon Champi cancels 200+ flights across Taiwan and Japan

Typhoon Champi has forced more than 200 flight cancellations across Taiwan and Japan, also disrupting travel to Okinawa and surrounding islands, Hong Kong and China as authorities warn of destructive winds, heavy rain and dangerous seas. Taiwan issued a land warning on Wednesday, 22 October 2026 as the powerful typhoon approached with airlines cancelling services

KBR (KBR) stock trades up, here is why

KBR (KBR) stock trades up, here is why What happened? Shares of government and sustainable technology solutions company KBR (NYSE:KBR) jumped 6% in the afternoon session after the company announced it was awarded contracts to support the revamp of two AGF Nitrogen ammonia plants in Germany and Austria. Under the agreements, the company will deliver

SOXX, SOXL, SMH Plunge As Chip Stocks Sell Off Amid Supply Chain Concerns

LAM Research CEO Tim Archer said in the earnings call with investors that going into 2027, the company sees “supply chain constraints for certain components continuing to limit chip makers.” Shares of Nvidia, Micron Technology, and Advanced Micro Devices plunged following the comments, alongside other chip stocks. Semiconductor companies had turned green earlier this week

SpaceX stock slides as tech trade tumbles

SpaceX (SPCX) stock slid on Thursday, giving back Wednesday’s post-earnings gain.  Shares jumped 7.8% on Wednesday following SpaceX’s upbeat third quarter results and AI commentary. The stock is under pressure — down 9% — along with the broader tech trade, following Meta (META) earnings and more headlines suggesting new strikes in the US/Israeli war with

The best countries in the world for a ‘spooky’ holiday | In Pictures

While Halloween is marked in many countries around the world on October 31, some people love sticking to the dark and mysterious theme when travelling any time of year. And of course, some nations are more spooky than others for a creepy visit. Experts at Holafly investigated and have now revealed the most eerie places

Meta stock falls 7% as AI spending fears return

Meta (META) stock closed out the trading day Thursday down 7% on, despite reporting better-than-anticipated Q3 revenue results Wednesday, as AI bubble fears remerged across Wall Street. Investors pulled back on semiconductor and other AI stocks across the board on questions about whether massive investments in AI data centers will pay off in the long

Trump Asks Elon Musk To Lift Ukraine Starlink Restrictions: Reports

Donald Trump Asks Elon Musk To Lift Ukraine Starlink Restrictions: Reports

Donald Trump called Elon Musk and asked him to lift restrictions on Ukraine’s use of Starlink. US President Donald Trump called Elon Musk and asked him to lift restrictions on Ukraine’s use of Starlink, the Wall Street Journal reported on Thursday, citing US officials. The Starlink system was working more normally on Thursday, shortly after

REG – Prudential PLC – Director/PDMR Shareholding — TradingView新聞

RNS Number : 8677K Prudential PLC 03 July 2026   1 Details of the person discharging managerial responsibilities / person closely associated a) Name Naveen Tahilyani 2 Reason for the notification a) Position/status Regional CEO, Indonesia, Malaysia, the Philippines, India, Africa; Group Agency and Health (PDMR) b) Initial notification /Amendment Initial notification 3 Details of

US tourists urged to write wills before high‑risk trips

US travelers planning trips to conflict zones and other high-risk destinations are being urged by new guidance and legal commentary to prepare formal wills and organize key documents before they depart. Get the latest news straight to your inbox! Rare warnings in the starkest US travel advisories Publicly available information shows that the US government’s

Zhipu seeks $4B in Hong Kong share sale after AI stock rally — TradingView新聞

Chinese artificial intelligence company Knowledge Atlas Technology JSC, better known as Zhipu AI, is seeking to raise around $4 billion through a share placement in Hong Kong. The share sale comes after its stock surged following its market debut earlier this year. The fundraising comes as investor interest in Chinese AI companies remains strong and

Sussex crime news query ChatGPT

AI answer engines often bypass local news outlets

Sussex crime news query ChatGPT Research has shown that popular AI chatbots such as ChatGPT and Google Gemini often ignore local publishers, even on queries about local issues such as council decisions and crime. The research by AI search visibility specialists Searchable found that ChatGPT cites national newspapers (18.8%) almost as much as local ones

Medicare Advantage plan cuts: United, Humana reduce benefits for 1 million

Health insurance giants are cutting back on benefits to maximize their profit.  UnitedHealthcare and Humana — the two largest private health insurance companies for older adults in the US — are canceling several Medicare Advantage plans, affecting nearly 1 million people. The two major health insurers are ending specific plans in areas where they make

Horizon Robotics Officially Lists on the Hong Kong Stock Exchange | 主頁 – 新聞

HONG KONG, Oct. 24, 2024 /PRNewswire/ — Horizon Robotics (HKEX: 9660), a leading provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, today officially listed on the Main Board of the Hong Kong Stock Exchange. Horizon Robotics is a key enabler for the smart vehicle transformation and commercialization with

France Reports First Ever Case Of Human Shamonda Virus, 1 Dead

France Reports First Ever Case Of Human Shamonda Virus, 1 Dead

The patient suffering from the virus has died. (Representational Image) Paris: French health authorities said Thursday that the Shamonda virus, which usually affects livestock, had been detected in a human for the first time, in a severely immunocompromised patient who died earlier this month. “Despite circulating in Africa and Asia for several decades, the Shamonda

0
Would love your thoughts, please comment.x
()
x