Trump rolls out red carpet for Xi as trade, Taiwan and AI test fragile US-China truce

US President Donald Trump and Chinese President Xi Jinping were set for high-stakes talks at the White House Thursday, with trade, artificial intelligence, Taiwan and Iran among the issues testing relations between the world’s two largest economies. Xi arrived in Washington Wednesday for a three-day state visit and received an unusually elaborate welcome from Trump at Joint Base Andrews, underscoring the importance both governments have attached to maintaining stability despite deep economic and strategic differences.

Trump and First Lady Melania Trump greeted Xi and his wife, Peng Liyuan, at the military base outside Washington, with the US President waiting near the aircraft as the Chinese couple disembarked. The visit marks Xi’s first trip to Washington in more than a decade and his second meeting with Trump in less than six months, following the US President’s visit to Beijing in May.

Trade truce buys time

The summit opened against the backdrop of a temporary easing of trade tensions, with the two sides agreeing to extend their existing tariff truce by two months. The arrangement had been due to expire on November 10, potentially reopening a confrontation over tariffs, export controls, rare earths and Chinese purchases of American products.

Trade is expected to occupy a substantial part of the talks as Washington presses Beijing over access to rare earths and critical minerals, while China seeks relief from US restrictions on advanced technology. The two governments have also been discussing Chinese purchases of American agricultural products and aircraft, although several of the most contentious economic questions remain unresolved.

For both sides, extending the truce offers more time to negotiate without returning immediately to the tariff escalation that had disrupted bilateral commerce. The discussions are therefore expected to focus not only on individual trade concessions but on whether the two governments can establish a more durable framework for managing economic competition.

AI emerges as key issue

Artificial intelligence has emerged as another major component of the summit, reflecting both the intense technological rivalry between Washington and Beijing and growing concerns over the security implications of increasingly powerful AI systems. The two governments have discussed establishing a dialogue mechanism on AI, although their competition over advanced chips, computing capacity and technology controls continues.

US officials have indicated that discussions could include mechanisms for communicating about serious AI incidents with national-security implications. Any cooperation, however, would unfold alongside Washington’s continuing restrictions on China’s access to advanced technologies and Beijing’s push to accelerate its own domestic semiconductor and AI capabilities.

The presence of some of America’s most prominent technology executives at Thursday’s state dinner is expected to underline the economic stakes. Senior executives from major technology companies have been invited as Trump hosts Xi at the White House following their formal talks.

Taiwan remains fault line

Taiwan remains among the most sensitive issues separating the two countries, with Beijing expected to press Washington over American arms sales to the self-governed island. China claims Taiwan as part of its territory, while Taiwan rejects Beijing’s sovereignty claims and the United States remains its principal arms supplier despite having no formal diplomatic relations with Taipei.

Beijing has repeatedly sought an end to US weapons sales to Taiwan, while Washington has resisted Chinese military pressure around the island. The issue carries particular significance at the summit because economic negotiations are taking place alongside broader attempts by both governments to prevent their strategic competition from escalating into a direct confrontation.

China’s Defence Ministry urged Washington Thursday to exercise “extreme caution” over arms sales to Taiwan ahead of the Trump-Xi talks. Taiwan, meanwhile, reiterated its appreciation for US support as attention turned to whether the issue would feature in any understandings reached between the two leaders.

Iran also on table

Iran is another difficult issue on the agenda, with Washington seeking greater Chinese involvement in efforts to influence Tehran. China maintains significant economic links with Iran, including through energy trade, but Beijing and Washington remain divided over the approach to the conflict and US policy towards Tehran.

The summit therefore brings together several disputes that extend well beyond bilateral trade. While Washington and Beijing have sought to prevent their relationship from deteriorating further, their differences encompass technology, security in the Taiwan Strait, the Middle East and the future rules governing strategic competition.

Xi’s three-day visit will also include a state dinner Thursday, followed Friday by private tea with Trump and Melania and a visit to the National Archives before the Chinese President leaves the United States. The ceremonial programme contrasts with the difficult agenda behind closed doors, where both sides will be looking for areas of accommodation without surrendering their positions on the disputes that continue to define US-China relations.