U.S. President Donald Trump hailed "extremely positive and constructive discussions" with Chinese counterpart Xi Jinping during a high-stakes trip to China on Thursday.Speaking at a state banquet in Beijing, Trump described Xi as a "friend" and his welcome in China as "magnificent." Talks so far between the two leaders have been "all good" for both countries, Trump said, inviting Xi to visit the U.S. in September.
"We have a chance to create a future of greater cooperation and prosperity," Trump said.
Xi, for his part, said he had an "in-depth exchange of views" with Trump, stressing that the two nations should "become partners, not rivals" -- although he noted that only through "mutual respect" can these ties be stable.
Neither Trump nor Xi entered into specifics around their conversations, which are expected to revolve around major issues like trade, Taiwan, and artificial intelligence. Earlier, the Wall Street Journal reported that Trump and Xi discussed granting U.S. companies more access to the Chinese market.
Citing a White House readout, the paper said Trump and Xi talked about "ways to enhance economic cooperation," as well as expanding Chinese agricultural purchases and efforts to limit the amount of ingredients found in the drug fentanyl sent to the U.S. from China.
But Chinese state media reported that Xi flagged that the U.S. and China could clash and even enter conflicts over Taiwan, if it was handled improperly. Trump said this week that he would raise the matter of arms sales to Taiwan with Xi. China has long laid claim to Taiwan as its own territory, and has warned against U.S. interference
Xi was also said to have been interacting with U.S. business leaders. A host of high-profile executives have joined Trump during his trip, including Tesla CEO Elon Musk, Apple CEO Tim Cook, and Boeing CEO Kelly Ortberg.
Trump, Xi call for tighter bonds
In opening remarks on Thursday, Xi argued that common interests between the U.S. and China far outweighed their differences, urging the nations to make 2026 a year of renewal in their relationship.
Trump said the bonds between the U.S. and China will be “better than ever before.” The president’s trip marks the first Chinese state visit by a U.S. leader in nearly a decade, with Trump having last visited Beijing shortly after the beginning of his first term.
Yet ties between Washington and Beijing have been strained, especially in the wake of a bitter trade war through most of 2025 and continued disagreements over AI chips. Before his trip, Trump had said he would ask Xi to “open up” China to U.S. business.
U.S. Treasury Secretary Scott Bessent, who met with Chinese Vice Premier He Lifeng in South Korea on Wednesday to lay the groundwork for the talks, told CNBC that he expected an announcement about large Chinese orders for Boeing’s aircraft during Trump’s visit. Shares of Boeing were higher in premarket trade following the comments.
Trump and Xi will also discuss other purchases of energy and agricultural goods, as well as non-strategic areas in which China could invest in the U.S., Bessent said.
The U.S. has cleared about 10 Chinese companies to purchase Nvidia’s second-most powerful AI chip, the H200, although a delivery has yet to be made, Reuters reported, citing people familiar with the matter. Nvidia CEO Jensen Huang is accompanying Trump to China, raising expectations that a breakthrough could be reached to unlock sales of the H200 in the country.
Bessent said the Reuters report was "news to me" and the "back and forth" on the H200 was a "Commerce Department function."
But discussions around AI will be "fulsome," Bessent claimed, adding that this was because the U.S. was "in the lead" on developing the nascent technology.
Iran war looms over talks
The talks are also expected to cover the U.S. and Israeli war on Iran, which has disrupted key oil flows to much of Asia for months. Some analysts have suggested that Trump may attempt to persuade China, a major importer of Iranian oil, to act as a guarantor on a lasting peace agreement, although it remains uncertain whether Beijing would want to play such a role.
"The market could be pinning too much hope on the U.S.-China talks yielding some positive results on Iran," analysts at ING said in a note.
According to the Fars news agency, Tehran has allowed the transit of Chinese vessels in the Strait of Hormuz, a vital waterway off Iran’s southern coast through which roughly a fifth of the world’s oil flows. Simultaneously blockaded by the U.S. and Iran, the strait has been virtually shut off for tanker traffic for months, driving oil prices higher and fueling worries over a burst of inflationary pressure.
Bessent said he believed China will "do what it can" on the strait.
"I think they will work behind the scenes to the extent anyone can sway Tehran," he said.
Signs have emerged this week that inflation is heating up in the U.S., with gauges of consumer and producer price growth coming in faster than anticipated, due largely to the energy shock sparked by the Iran war. Oil prices now sit well above pre-war levels of $70 a barrel.
However, Bessent predicted that price gains will ease "quickly" once the cost of crude begins to fall.
