Trump-Xi Summit Focuses on Trade, Taiwan

President Donald Trump met with Chinese President Xi Jinping in Beijing for a high-stakes summit focusing on trade, Taiwan tensions, and global conflicts. The meeting was marked by ceremonial pomp at the Great Hall of the People, including military personnel, dignitaries, music, and children waving flags.

The two leaders emphasized cooperation but highlighted significant differences. Xi warned that mishandling Taiwan could lead to conflicts between the U.S. and China. 'Handle it well, the relationship holds; handle it badly, the two countries risk collision or conflict,' Xi said according to CNBC. Trump praised Xi's leadership and expressed optimism about improving U.S.-China relations.

Trade discussions were a key focus of the summit. The White House suggested there could be announcements on trade, including a Chinese commitment to buy U.S. soybeans, beef, and aircraft. According to AP News, Trump administration officials also want to work toward establishing a Board of Trade with China to address commercial differences.

The summit comes amid ongoing tensions over Taiwan and the war in Iran. Xi mentioned the 'Thucydides Trap,' referring to the idea that when a rising power threatens to displace an established power, the result is often war. Trump downplayed suggestions that he would press Xi to do more to pressure Iran to open the Strait of Hormuz.

Trump characterized the meeting as 'great' and told Fox News that Xi said he's not going to give any military equipment to Iran, which the U.S. president called a 'big statement.' According to CBS News, Trump also told Fox News that Xi wants to help reopen the Strait of Hormuz.

Xi's remarks were published by China’s foreign ministry after his two-hour meeting with Trump on Thursday morning, as reported by The Guardian. Xi told Trump that Taiwan was 'the most important issue in China-US relations.' The White House’s readout of the meeting said the two sides also discussed market access for US firms in China and fentanyl controls.

Trump later said Xi had pledged not to send weapons to Iran, despite recent reports that Chinese arms manufacturers had discussed deals to supply weapons to Tehran. According to Fox News, Xi assured Trump that China would not provide military equipment to Iran. 'That’s a big statement,' Trump said. 'He said that strongly, but at the same time, he said they buy a lot of [Iran's] oil there, and they’d like to keep doing that.'

Xi raised concerns over alleged efforts by Iran to impose costs on ships moving through the Strait of Hormuz, as reported by Fox News. The White House noted that leaders from many of the United States' largest companies joined a portion of the meeting. 'The two sides agreed that the Strait of Hormuz must remain open to support the free flow of energy... Both countries agreed that Iran can never have a nuclear weapon,' the White House noted.

More than a dozen U.S. business leaders joined President Donald Trump on his state visit to China, according to Al Jazeera. 'They are all distinguished representatives from the American business community who all respect and value China,' said Trump upon arrival in Beijing. 'We highly value the Chinese market' and hope to do more business there, the group told Xi Jinping.

Xi noted that U.S. companies are deeply involved in China's reform and opening up, and both sides have benefited from this. Tesla and SpaceX boss Elon Musk, Nvidia's CEO Jensen Huang, and Apple CEO Tim Cook were among the top technology executives who traveled with Trump to China. According to CNBC, Xi told American CEOs traveling with President Donald Trump that the door to business in China will 'open wider.'

U.S. stocks powered higher Thursday, with the S&P 500 posting its first close above 7,500, and the Dow Jones Industrial Average jumping 370 points to recapture the 50,000 level. The performance was fueled by optimism around President Donald Trump's China visit, as well as strong earnings from Cisco Systems.

Day one of the high-stakes summit in Beijing saw Chinese President Xi Jinping and Trump agreeing to develop a 'constructive China-U.S. relationship of strategic stability.' The two sides also discussed global conflicts, with Trump and Xi aligning on keeping the Strait of Hormuz open to restore energy flows through the critical waterway, according to a White House official.

In regard to commercial deals struck so far, Trump told Fox News that China will order 200 Boeing jets in a major win for the U.S. planemaker. However, there was also some tough talk at the summit, with Xi warning Washington that mishandling Taiwan would put the U.S.-China relationship in 'great jeopardy.' Beijing considers Taiwan, a democratically self-ruled island, part of its territory, while the island's ruling party rejects that claim.

GE Aerospace CEO Larry Culp was seen on Friday in Beijing leaving a meeting at the headquarters of China's powerful state planner, the National Development and Reform Commission. Culp's visit to the NDRC building comes after Trump told Fox News that following talks with Xi Jinping, China had agreed to order 200 Boeing jets, its first purchase of U.S.-made commercial jets in nearly a decade.

As Boeing's primary engine supplier, GE Aerospace also stands to gain from the purchase agreement. Culp and Boeing CEO Kelly Ortberg are part of a business delegation of more than a dozen U.S. conglomerate executives accompanying Trump on his state visit to China.