Trump Arrives in Beijing, Xi Summit in Focus Amid Iran War
US President Donald Trump arrived in Beijing on Wednesday, beginning the first visit by a sitting US president to China since his own in 2017. Video released by the US government showed Trump disembarking from Air Force One and being greeted on the red carpet, including by Chinese Vice President Hang Zhang.
Trump is scheduled to attend a state welcoming ceremony on Thursday before meeting President Xi Jinping for a series of meetings, including media interviews. Trump said his initial request was to encourage Xi to open China more widely to Western businesses, amid discussions expected to include trade tariffs, artificial intelligence, and Taiwan.
The trip also includes a delegation of major US corporations. Trump confirmed that Nvidia CEO Jensen Huang will be participating, along with Tesla's Elon Musk and Apple's Tim Cook, as well as leaders from Blackstone, BlackRock, Boeing, Cargill, Citi, GE Aerospace, Goldman Sachs, Micron, and Qualcomm. This lineup reinforces the idea that economics and market access will be a key focus of the meeting.
However, the US-Iran war continues to cast a shadow over the meeting. China is a major importer of Iranian oil and has called for the reopening of the Strait of Hormuz, which it says remains effectively closed as the US blockades Iranian ports and Tehran restricts other international traffic. Some analysts believe China could potentially be pushed to become a guarantor of a more lasting peace deal, although expectations of a breakthrough from this meeting have begun to wane.
At a time when US-Iran diplomacy is reportedly stalled, Trump this week dismissed Iran's response to a US peace proposal as "unacceptable" and a "piece of garbage," amid reports speculating whether the White House will pursue attacks on Iran. According to Capital Economics, China's economy is now "stronger" than at the beginning of the year and is even said to be benefiting from the Iran war through a boost in green tech exports that helps offset the impact of higher oil prices.
The Trump-Xi meeting is now being monitored as a barometer of two risk pathways: the direction of trade and technology relations after the 2025 tensions, and possible signals regarding the stabilization of the Iran conflict, which could have a direct impact on global energy and inflation. Key variables the market will be watching include the outcome of the tariff and business access discussions, signals related to AI chips and Taiwan, and whether there is any confirmation of concrete steps regarding Hormuz and the US-Iran diplomatic framework. (arl)
Source: Newsmaker.id
