[ANALYSIS] Trump-Xi Summit: Leaders strike positive tone as trade, Taiwan and tech discussions continue

OVERVIEW

• US President Trump and Chinese President Xi struck a notably warm tone during talks in Beijing, with both leaders emphasising cooperation and future ties.
• Trade discussions remained a core focus, with reports yesterday suggesting the US and China are weighing tariff reductions and managed trade targets.
• Xi reiterated that Taiwan remains the most important issue in US-China relations and warned that mishandling the matter could lead to a clash.
• Technology and commercial ties are also in focus, including NVIDIA chip approvals and renewed Chinese import licenses for US beef plants.

TRUMP-XI SUMMIT

• Trump told Xi they have had a “fantastic relationship” and will have a “fantastic future together”.
• Trump said he has great respect for China and described Xi as a “great leader”.
• Trump stated that US-China relations will be better than before and trade will become “totally reciprocal”.
• Xi told Trump that common interests between China and the US outweigh their differences.
• Xi said the success of China and the US represents an opportunity for each other and he looks forward to discussions with Trump.
• Trump later said talks with Xi were “great” and described China as beautiful.

TRADE

• Reuters sources on Wednesday said the US and China are weighing tariff cuts on roughly USD 30bln of imports.
• Reuters sources added the US is shifting focus towards numerical trade targets rather than structural economic reform.
• Xi told US CEOs that China’s door “will only open wider” and welcomed stronger reciprocal cooperation with US firms.
• Xi said US companies will have broader prospects in China, according to Xinhua.
• China renewed export licenses for more than 400 US beef plants, according to customs data.
• Semafor reported oni Wednesday the White House has not ruled out potential Chinese direct investment in the US.
• Xi said talks are the only correct way to resolve disputes and reiterated there are no winners in a trade war.

TECHNOLOGY

• Reuters sources said the US approved around 10 Chinese firms to purchase NVIDIA H200 chips.
• Approved buyers reportedly include Alibaba, ByteDance, Tencent and JD.com.
• NVIDIA CEO Jensen Huang said he hopes for stronger US-China ties and cited the positive relationship between the two leaders, according to CCTV.

TAIWAN

• Xi stated Taiwan is the most important issue in US-China ties and warned that mishandling the issue could lead to clashes between the two countries, according to Xinhua.

SCHEDULE

Thursday

• The White House said Trump will meet Xi on Thursday at 10:15 Beijing time / 03:15BST / 22:15EDT.
• Thursday is expected to be the main ceremonial and diplomatic day, including a welcome ceremony, Temple of Heaven visit, formal bilateral meeting and state banquet.
• The banquet is scheduled for Thursday at 18:00 Beijing time / 11:00BST / 06:00EDT.

Friday

• Discussions are expected to continue on Friday, including extended talks and a working lunch before Trump’s departure later in the day.