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US President Donald Trump arrived in Beijing on Wednesday for a new round of face-to-face talks with Chinese President Xi Jinping on May 14 to 15, a meeting that comes at a very difficult time in global politics and international economics.
The meeting marked the first face-to-face meeting between the two leaders since the Busan agreement last October, in which both sides agreed to postpone further escalation of the US-China trade war for one year.
Although turmoil in the Middle East delayed this meeting for a month, the easing of tensions with Iran finally paved the way to what many see as the most important diplomatic inflection point in 2026.
Amid a fragile global recovery and uncertainty in international markets, the meeting in Beijing is being closely watched to see whether the two countries can shift from “crisis management” to a more sustainable form of strategic balance, impacting broader global economic stability.
At their first meeting on Thursday morning, President Xi congratulated the United States on the country’s 250th anniversary, while President Trump praised Xi as a “great leader,” and provided a warm and welcoming atmosphere at the opening of the summit.
President Xi stressed that China and the US should be partners, not rivals, and empathized that relations between the two countries will impact not only their societies, but also the future of the world. President Trump said that this meeting would be the biggest summit, because leading business delegations would attend with him.
A US official said the two sides were expected to continue discussions on establishing a new mechanism for coordinating trade and investment, with cooperation in agriculture, aerospace and energy also likely to feature prominently.
Meanwhile, Beijing views this visit as an opportunity to stabilize bilateral relations amid increasing global uncertainty. In its remarks on Monday, China’s Foreign Ministry stressed the need to expand mutually beneficial cooperation, manage differences, and “inject greater stability and certainty into a turbulent and ever-changing world.”
A guide from a strategic analyst
Analysts widely agree that the summit reflects shared short-term interests in stabilizing Sino-US relations, even as deeper strategic tensions remain unresolved.
Zhao Hai, director of the International Politics Program at the National Institute for Global Strategy, emphasized that the main “product” of the summit is the ability to predict. For the private sector, specific policies often have less of a negative impact than uncertainty about what policies will be adopted in the future.
This reflects the “managed strategic competition” framework championed by former Australian Prime Minister Kevin Rudd. The aim of the meeting in Beijing was not to bridge a decade-long trust deficit in a three-day summit, but to prevent further unintended escalation. He said careful coordination and transparent dialogue were critical to maintaining stability in the long term.
Economic frictions and business impacts
Although Chinese state media portrays economic ties as a cornerstone of stabilization and a key driver of broader Sino-US relations, US tariff policy continues to be at the center of bilateral disputes.
Although Beijing views these measures as “unreasonable restrictions,” the Trump administration continues to use them as a key tool to boost the economy.
John McLean, chairman of the China–UK Business Development Center, noted that changes in US tariff policy are creating deep uncertainty, prompting many companies to postpone or reconsider long-term investment plans.
However, economic data tells a more nuanced story of self-inflicted wounds. A recent study by the Kiel Institute, a leading German economic research body, found that foreign exporters absorb only about 4% of the tariff burden, with the remaining 96% borne by US businesses and consumers.
These findings underscore that while tariffs are often thought to protect American industry, their indirect impact is to influence prices, supply chains, and investment decisions.
For small and medium businesses, the impact is very severe. Philip Crawley, who runs a laser equipment import business in California, reported that tariffs imposed last year cost his company millions of dollars, forcing it to slow operations, reduce employee salaries and delay hiring plans.
Glen Calder, president of Calder Brothers in South Carolina, said his steel prices increased by 25% even before the U.S. tariffs took effect, as the market anticipated higher trade barriers.
Strategic competition may be conducted at the state level, but its economic consequences are often absorbed by businesses, workers, and consumers facing an unpredictable policy environment.
Continued investment interest in China
Perhaps the most surprising element of the current climate is the resilience of corporate interests. Despite these challenges, many companies in the US continue to view China as an important market.
According to the American Chamber of Commerce in China, about 60% of American companies still plan to invest in the Chinese market, reflecting strong confidence in China’s economic opportunities.
The reasons are clear: China accounts for about 17% of global GDP, accounts for about 30% of global economic growth, and is projected to export nearly $4 trillion by 2025.
The sheer scale and growth of the economy makes this important for companies to ignore, as it provides strong incentives to maintain or expand investments even amidst uncertainty.
Looking ahead: Strategic cooperation and stability
President Xi stated in Thursday’s meeting that success in one area is an opportunity for other areas. China has maintained a relatively consistent stance towards Washington, rooted in the idea that the Pacific is large enough to accommodate both major powers. The summit offers a rare opportunity to clarify intentions and move beyond the zero-sum rhetoric that dominated the 2020s.
Reducing uncertainty in trade, investment and technology will benefit businesses and global markets, strengthening long-term stability, which is a shared asset, not a concession. Reducing the “noise” in trade and technology is not just a win for diplomats. This is the oxygen needed for global markets to breathe again.
By: Chen Ziqi
