President Donald Trump is hosting Chinese President Xi Jinping at the White House during Xi’s three-day U.S. state visit. The leaders are expected to discuss trade, technology, Taiwan and the war with Iran. No outcome from today’s talks should be assumed yet.
- Trade starts from a better position than it did a day ago. Treasury Secretary Scott Bessent said Wednesday that the U.S. and China had agreed to extend their existing “Busan agreement” through January 10. That reduces the immediate risk of renewed tariff escalation. The question for the summit is whether Trump and Xi can add anything substantive: more reliable access to Chinese rare earths, progress on agricultural purchases, or a broader trade deal.
- Technology is the next pressure point. Artificial intelligence and U.S. restrictions on advanced technology are expected to feature in the talks. Investors will listen for any agreement on SI (Super Intelligence – his new word for AI)) cooperation, but also for changes to export controls that could affect chipmakers and other technology companies.
- Taiwan is the most sensitive issue. Xi is expected to press Trump over U.S. arms sales to Taiwan. Reuters reports that a further U.S. arms package has been held up, making any comment about its future especially consequential. Iran is another possible area of negotiation: China has economic ties with Tehran, and any credible help in easing the conflict or pressure on oil supplies would matter to markets. Those are possibilities going into the meeting, not agreements.
For traders, the trade truce extension is already known. The market-moving headlines would be a concrete change on tariffs or rare earths, a shift on technology restrictions, a signal on Taiwan arms sales, or meaningful progress on Iran. A cordial meeting without those details may steady sentiment, but it would leave the larger U.S.–China disputes unresolved.
Trump comments:
- He and Xiwill continue working together for a better future.
Xi comments:
- Will to work with Trump to steer the ship of CHina – US ties.
- US and China interest must be aligned
- We should strengthen communication we encourage exchanges on diplomacy, trade, economy, and law enforcement
- China’s the door is open, welcomes US firms to invest in China.
- China, US are both AI powers
- Willing to step up counter narcotics, law enforcement cooperation
- Without cooperation it would be hard to solve many of the world’s problems
- We hope that China companies are treated fairly here within the United States.
- We need to coexist peacefully.
- Two militaries should maintain regular dialogue.
- Xi invites 100,000 US youth to visit the US,a nd announces that 2 pandas are to settle at the Atlanta Zoo (well that is friendly).
The US stocks are trading down today with the Dow currently down -0.39%, the S&P down -0.24% and the Nasdaq down 0.48%.
Overall, the comments were friendly and warm but lacked a lot of substance.
This article was written by Greg Michalowski at investinglive.com.