Trump says US-China ties will be ‘better’ as Beijing summit gets under way; Xi warns on Taiwan
The renminbi rose to a three-year high against the dollar as traders watched the headlines from the meeting
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[BEIJING] US President Donald Trump and his Chinese counterpart Xi Jinping struck an optimistic tone at the start of their highly anticipated summit, emphasising possibilities for collaboration while the Chinese leader underscored Taiwan as the top issue in bilateral ties.
“If mishandled, the two nations will experience collision or even conflict, pushing the entire China-US relationship into a highly dangerous situation,” Xi said, according to a readout published by the official Xinhua agency.
The issue of the self-ruled island of Taiwan, which Xi called the “most important issue” in bilateral ties, came after upbeat opening remarks by both leaders.
“We should be partners, not rivals,” Xi said in his opening remarks. “We should help each other succeed and prosper together and find the right way for major countries to get along well with each other in the new era.” The Chinese president also hailed positive trade negotiations with the US.
The two leaders met in the Great Hall of the People off Tiananmen Square on Thursday morning after a welcome ceremony featuring honor guards and carefully choreographed pageantry.
Speaking after Xi, Trump praised the reception he received and called Xi a “great leader.”
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“The relationship between China and the USA is going to be better than ever before,” Trump said.
The two days of meetings will show whether they can maintain a recent detente complicated by the US-Israeli war against Iran, and what concessions either side is willing to make.
The US president highlighted the business delegation joining his trip that includes Nvidia’s Jensen Huang and Tesla’s Elon Musk. The US corporate leaders are “here today to pay respects to you and to China, and they look forward to trade and doing business, and it’s going to be totally reciprocal on our behalf,” he said.
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As Trump and Xi met, Apple’s Tim Cook gave reporters a thumbs up when asked how the summit was progressing.
At the welcome ceremony, Xi and Trump walked together and stopped to greet top Chinese officials, starting with Cai Qi, Xi’s chief of staff, followed by the US delegation, which included US Ambassador to China, David Perdue, as well as Secretary of State Marco Rubio and Defence Secretary Pete Hegseth.
Meanwhile, China’s blue-chip stocks eased 1 per cent after hitting their highest level since late 2021 at the start of the session, while the renminbi rose to a three-year high against the dollar as traders watched the headlines from the Trump-Xi meeting. The benchmark Shanghai Composite index slid 1.02 per cent by the midday break, while the blue-chip CSI300 Index lost 1.3 per cent.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.3 per cent, hovering near the record-high hit last week.
‘Most important relationship for us to manage’
Relations between Washington and Beijing have stabilised since the two met in October 2025 in Busan, South Korea. But tensions have remained, with the US-Israeli war against Iran representing the latest flash point.
Discord also persists over China’s dominance over the supply of rare earths and American export controls that limit the ability of Chinese companies to access cutting-edge chips.
Ahead of the meeting, Rubio said the relationship with China was “both our top political challenge, geopolitically, and it’s also the most important relationship for us to manage.”
“It’s a big, powerful country. It’s going to continue to grow, but we’re going to have interests of ours that are going to be in conflict with interests of theirs,” Rubio said in an interview with Fox News taped aboard Air Force One and airing shortly ahead of the meeting.
While specific outcomes from the discussions likely will not become clear until the summit concludes, topics on the agenda are expected to include trade, tariffs, Taiwan and Iran. Trump, who included a group of US corporate executives including Musk and Huang in his delegation, said his first priority would be asking Xi to roll back trade barriers.
“I will be asking President Xi, a Leader of extraordinary distinction, to ‘open up’ China so that these brilliant people can work their magic, and help bring the People’s Republic to an even higher level,” the US leader wrote in a social media post.
The US and China are weighing a potential framework whereby each country identifies some US$30 billion in goods on which tariffs could be eased without threatening national security interests, Reuters reported, citing four unnamed people familiar with the Trump administration’s objectives. The White House did not immediately respond to a request for comment on the report.
Rubio also indicated in the Fox News interview that the US would push China to help conclude the war in Iran, as negotiations on a peace deal continue to bedevil the White House.
“We hope to convince them to play a more active role in getting Iran to walk away from what they’re doing now in the Persian Gulf,” Rubio said, adding he believed it was in China’s “interest to resolve this” due to Asia’s heavy energy dependence on the region, the possibility Chinese ships could continue to be targeted, and the risk that the conflict could further weigh on the global economy.
The two leaders have met at least six times over the past decade – typically on the sidelines of major multilateral summits – although they have also visited each other’s nations.
While in Beijing, Trump will take part in a state banquet with Xi Thursday evening. On Friday, he will meet with the Chinese leader again for a photo session, followed by a tea gathering and then lunch, before departing from Beijing in the afternoon
Business interests
US CEOs including Nvidia’s Huang, Apple’s Cook accompanied Trump on this trip. One of the key voices in those conversations will be Nvidia CEO Jensen Huang, who joined the trip at the last minute. His focus will be on AI chips - a major sticking point in US-China ties. Nvidia has been pushing to expand sales in China, but while Washington has granted some export licenses, Chinese customers have so far been unable to complete purchases. That’s left orders for its most advanced chips in limbo. What happens next for Nvidia is one of the most closely watched aspects of this trip.
There’s a parallel track of dealmaking and networking happening around this trip as well. The US business delegation traveling with Trump spans sectors from tech and finance to aviation and agriculture. BLOOMBERG, REUTERS
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