The upcoming summit between U.S. President Donald Trump and China's Xi Jinping, scheduled for May 14 and 15, is expected to focus primarily on the ongoing Iran war, which may delay progress on other critical issues such as tariffs and rare earth supplies [1]. U.S. Treasury Secretary Scott Bessent confirmed that Iran will be a central topic during the meetings [1]. Earlier in the week, China hosted Iran's foreign minister for the first time since the war began in late February, an event that raised hopes for a peace deal, led to lower oil prices, and fueled gains in the stock market [1].
The U.S. government declined China's invitation to organize industry-specific meetings between senior Chinese leaders and U.S. CEOs, citing concerns that it could make American businesses appear too close to Beijing. As of Tuesday, the White House had not formally invited executives to join Trump on the trip, and a proposed list of two dozen leaders could be reduced by half [1]. Boeing and Citigroup CEOs are among those expected to accompany Trump, with Boeing anticipated to secure its first large order from China in nearly a decade during the summit [1].
The summit's focus on Iran comes amid renewed hostilities, with the U.S. and Iran trading fire in the Strait of Hormuz and each side blaming the other for initiating the attack. Additionally, a Chinese-owned oil tanker was reportedly struck, though CNBC could not independently confirm this report [1]. Despite the reduced business delegation, the expected images of Trump and Xi together may signal to Chinese officials and businesses that engagement with U.S. companies is becoming more acceptable again, according to Michael Hart, president of the American Chamber of Commerce of China [1].
An end to the Iran war would be a "great relief to global business," according to Hai Zhao, director of international political studies at the Chinese Academy of Social Sciences, who stated it would be remembered as a significant success for the Trump-Xi summit [1]. The Chinese foreign ministry reiterated its welcome for U.S. business expansion and hopes for continued advancement in bilateral economic relations [1].
CONCLUSION
The Trump-Xi summit is set to prioritize the Iran war, potentially delaying progress on tariffs and rare earth issues. While the reduced U.S. business delegation marks a shift from previous summits, hopes for a peace deal have already impacted oil prices and stock markets. The outcome of the summit could have significant implications for global business sentiment and U.S.-China economic relations.