Iran focus at Trump-Xi summit may delay progress on tariffs, rare earths
The image here shows the last official visit to China by a sitting US president. President Donald Trump traveled to Beijing in November 2017 during his first term to meet with Chinese President Xi Jinping.
Pool | Getty Images
BEIJING — The Iran war is likely to be the focus of the summit between U.S. President Donald Trump and China’s Xi Jinping, leaving less room to resolve issues such as tariffs and rare earth supplies.
US Treasury Secretary Scott Bessent has already said that Iran will be on the agenda of the meetings to be held on May 14 and 15. And earlier this week, China hosted Iran’s foreign minister for the first time since the war began in late February; This raised hopes for a peace deal, caused oil prices to fall and boosted stock market gains.
The U.S. government rejected China’s invitation to hold industry-specific meetings between senior Chinese leaders and U.S. CEOs, thinking it might make American companies appear too close to Beijing, according to a U.S. executive with direct knowledge of the arrangements. As of Tuesday, the White House had yet to formally invite executives to join Trump on the trip, and a list of two dozen leaders had been offered. can be halvedthe person added.
Boeing’s And citigroup Two separate sources said the CEOs were among those who will accompany Trump. The US aircraft giant is expected to place its first major order from China in nearly a decade after its peak.
Xi has hosted a dozen national leaders this year, from Britain to South Korea, often bringing large business delegations. Still, companies may not object to the reduced focus if it resolves a major geopolitical overhang for them.
Hai Zhao, director of international political studies at the Chinese Academy of Social Sciences, a state-run think tank, said an end to the Iran war would be “a huge relief for global trade.” This will “be remembered as a great success” for the Trump-Xi summit.
However, the United States and Iran again exchanged fire in the Strait of Hormuz, with each accusing the other of launching the attack. Just a few days ago Chinese oil tanker He was also shot, according to Chinese media outlet Caixin. CNBC could not independently verify the report.
The presence of a smaller group of executives on Trump’s visit to China will contrast with the president’s trip to Saudi Arabia last May, when more than 30 U.S. executives accompanied him. When Trump visited China during his first term in 2017, the last sitting US president, he was accompanied by nearly 30 CEOs and signed 37 major deals worth more than $250 billion.
But Michael Hart, president of the Beijing-based Chinese American Chamber of Commerce, said images of Trump and Xi expected to be seen together could send a signal in China that re-engaging with US companies is more acceptable.
“Since U.S. military actions earlier this year, Chinese officials have been more hesitant to engage with American business,” he said.
China welcomes trade expansion in the United States and hopes companies can continue to improve bilateral economic relations, the foreign ministry told CNBC. China’s Ministry of Commerce did not respond to a request for comment.
Meanwhile, the urgency of some work-related issues decreases. Both countries are stepping back from recent conflicts US sanctions And technologywhile pursuing cooperation in growth security threat of artificial intelligenceAccording to reports.
And some progress can still be made. Trump is expected to make deals on China’s purchases of U.S. soybeans and Boeing planes, according to Scott Kennedy, senior advisor and chairman of trustees for Chinese business and economy at the U.S.-based Center for Strategic and International Studies.
He also predicts that Trump will discuss U.S. plans to establish trade and investment organizations, called “boards,” to address specific bilateral issues.
“The meeting will likely consolidate the advantages China gained last year,” Kennedy said.
Beijing’s focus will likely be on tariffs, Taiwan’s status and restrictions on U.S. access to China’s advanced technology, Kennedy said. China became the first major country to retaliate against the tariffs announced by the Trump administration in April 2025.
Meanwhile, changes to China’s increasingly stringent rare earth export controls will be felt around the world, affecting all countries, not just the United States.
— CNBC’s Matthew Chin contributed to this report.
