Chinese President Xi Jinping signalled fresh progress in trade negotiations with the United States as he opened a closely watched summit with US President Donald Trump in Beijing on Thursday.
The high-profile meeting, described by Trump as the “biggest summit ever,” comes at a critical time for global markets as Washington and Beijing attempt to ease tensions over tariffs, technology restrictions and regional security disputes.
During the opening session at Beijing’s Great Hall of the People, Xi stressed the importance of cooperation between the world’s two largest economies. He told Trump that recent trade talks had shown “positive progress” and warned that confrontation between China and the United States would harm both nations and destabilise the global economy.
Trump responded with optimism, praising Xi and expressing hope for stronger economic ties between Washington and Beijing. The US president arrived in China alongside several prominent American business leaders, including executives from major technology and manufacturing companies, in a move aimed at boosting commercial cooperation and market access.
Trade remains the central focus of the summit after years of tensions linked to tariffs, semiconductor restrictions and export controls. Officials from both countries recently held negotiations in South Korea and reportedly reached preliminary agreements on reducing trade barriers and maintaining a tariff truce established last year.
Xi also reassured American businesses that China would continue opening its economy to foreign investment. Chinese state media reported that the president encouraged deeper cooperation with US firms and promised broader opportunities for international companies operating in China.
Despite the positive tone on trade, serious geopolitical tensions continue to overshadow the summit. Xi issued a stern warning over Taiwan, calling it the most sensitive issue in US-China relations. He cautioned that mishandling the Taiwan question could trigger confrontation between the two powers.
The two leaders are also expected to discuss the ongoing conflict involving Iran, artificial intelligence competition, regional security and supply chain disruptions affecting global markets. Analysts say the summit could shape the future direction of US-China relations at a time of growing uncertainty in international politics.
Financial markets reacted cautiously as investors monitored developments from Beijing. Traders hope both countries can avoid another damaging trade war that could disrupt global supply chains and economic growth.
Political observers believe the summit carries enormous diplomatic significance for both leaders. Trump seeks economic wins ahead of domestic political challenges, while Xi aims to position China as a stable global power capable of managing international tensions through dialogue and cooperation.
The summit is expected to continue through Friday, with both sides likely to release joint statements on trade and strategic cooperation after the talks conclude.