Trump-Xi Summit: Trade, Taiwan, Iran and AI Talks Explained

US President Donald Trump is preparing to welcome Chinese President Xi Jinping to Washington on September 24 for their second meeting of 2026, with trade, Taiwan, Iran, artificial intelligence and critical minerals expected to feature prominently in the talks.

The meeting comes as Washington and Beijing try to manage a relationship that has improved in some economic areas while remaining marked by disputes over technology, trade restrictions, security and strategic competition.

Xi’s visit will also be his first White House visit in a decade, according to Reuters.

Trade truce is a central issue

One of the most closely watched issues will be the future of the existing US-China tariff arrangement.

A trade truce reached after the leaders’ October 2025 meeting in South Korea is due to expire on November 10, 2026. Markets will therefore be watching for signs that Washington and Beijing intend to extend the arrangement rather than allow tariffs and other restrictions to escalate.

The US Trade Representative has said Washington wants trade with China to become more balanced and based on what it describes as reciprocity.

The administration’s 2026 Trade Policy Agenda says the United States will continue engaging China while monitoring Beijing’s compliance with the 2025 agreement.

The two sides also agreed earlier this year to establish a US-China Board of Trade, designed to provide a government-to-government mechanism for discussing bilateral trade involving non-sensitive goods.

That mechanism could become part of the broader effort to prevent disagreements over individual products from repeatedly escalating into wider tariff disputes.

What China wants

Beijing has its own priorities going into the meeting.

Reuters reports that China is expected to seek relief from some US technology restrictions while pushing for greater stability in the economic relationship. Beijing is also interested in maintaining access to international markets for Chinese companies and securing a predictable trading environment.

Technology restrictions are particularly sensitive because the United States has imposed controls on China’s access to advanced semiconductor technology.

At the same time, China’s position on critical minerals gives Beijing an important negotiating issue. Rare-earth materials and related processing capabilities are essential to several industries, including electronics, electric vehicles and advanced manufacturing.

The White House said in May that China had agreed to address US concerns involving shortages and restrictions affecting rare earths and other critical minerals.

The United States wants more access to Chinese rare earths

Critical minerals are expected to remain an important part of the negotiations.

China occupies a major position in the global rare-earth supply chain, including processing. Restrictions on exports can therefore affect manufacturers outside China.

The Trump administration has been seeking greater predictability in access to these materials.

The White House said its May agreement with China included commitments concerning rare earths, including yttrium, scandium, neodymium and indium, as well as equipment and technologies used for rare-earth production and processing.

The issue is significant because restrictions on critical minerals can have consequences far beyond the two countries.

Manufacturers in other economies depend on international supply chains for components and raw materials, meaning changes in US-China trade policy can affect production costs and investment decisions elsewhere.

Boeing and agricultural purchases are also on the agenda

Trade discussions could also involve Chinese purchases of American goods.

The White House said in May that China had committed to an initial purchase of 200 Boeing aircraft and at least $17 billion per year in US agricultural products in 2026, 2027 and 2028, with the 2026 figure prorated.

Those commitments are relevant to American aircraft manufacturers, farmers and agricultural exporters.

Whether additional purchases or new commercial commitments emerge from the September meeting will be closely watched.

For Beijing, however, trade concessions need to be considered alongside its own concerns about US tariffs and technology controls.

Taiwan adds a security dimension

Trade is only one part of the relationship.

Taiwan is expected to be among the most sensitive subjects discussed between Trump and Xi.

China regards Taiwan as part of its territory and opposes moves toward formal Taiwanese independence. The United States maintains unofficial relations with Taiwan and provides it with defensive equipment, while also maintaining a longstanding policy of strategic ambiguity over how it would respond to a Chinese attack.

Reuters reported that US allies in Asia are watching closely for indications of how Trump might approach the Taiwan issue during his meeting with Xi.

The issue is particularly sensitive because any major change in US policy could affect calculations in Beijing, Taipei, Washington and other Asian capitals.

The Chinese government has repeatedly called for opposition to Taiwan independence and has described the Taiwan issue as a core Chinese concern.

Iran could enter the discussions

The conflict involving Iran is another issue expected to feature in the talks.

Reuters reported that Trump and Xi are expected to discuss China’s economic relationship with Iran as Washington seeks to restrict financial and commercial channels that support Tehran.

The issue has become more important because disruptions involving Iran and the wider Middle East have affected global energy markets.

China is a major importer of oil and has economic relationships across the region. Washington, meanwhile, has been seeking to use sanctions and other measures to influence Iran’s access to international finance and trade.

The discussions could therefore connect geopolitical concerns with energy markets and international financial flows.

Artificial intelligence is becoming a strategic issue

Artificial intelligence is another major subject in the relationship.

The US and China are competing over advanced AI systems, semiconductors, computing infrastructure and the development of military applications.

Reuters reported that AI competition is expected to be a central issue during the Trump-Xi talks, with disagreements over advanced chips, technology transfer, AI regulation and the military implications of increasingly autonomous systems.

The two countries have also seen calls from security experts for safeguards around AI systems that could interfere with nuclear command structures or conduct sensitive military cyber operations.

Those proposals include maintaining human control over critical military decisions and establishing communication channels that could reduce the risk of an AI-related incident being mistaken for deliberate aggression.

The proposals have not been adopted as a bilateral agreement, but they show how AI has moved beyond a technology and economic issue into the security relationship between Washington and Beijing.

China is expected to bring business leaders

Xi is also expected to travel with a business delegation.

Reuters reported that executives from companies including BYD, CATL, Xiaomi, Gotion, Hisense, Wanxiang Group and the Bank of China may be part of the wider delegation, although final participation and visa approvals were still pending.

The potential presence of major Chinese companies would add an economic dimension to the summit.

Several of the companies being considered operate in industries that are already affected by US-China technology, automotive, investment or national-security disputes.

That makes their participation potentially relevant to discussions about market access, investment and supply chains.

A proposed Board of Trade could become important

The US-China Board of Trade is one of the institutional mechanisms created during the current period of engagement.

The US Trade Representative said the mechanism is intended to manage bilateral trade involving non-sensitive goods and identify areas where tariff modifications could support more balanced trade.

Its significance will depend on whether Washington and Beijing can use it to resolve commercial disputes before they become larger political conflicts.

For businesses, a more predictable mechanism could make planning easier. For governments, it provides another channel for negotiations outside high-level presidential meetings.

Markets are watching the summit closely

Financial markets are paying attention because the outcome could affect tariffs, supply chains, currencies, commodities and investment decisions.

An extension of the tariff truce could reduce uncertainty for companies that rely on US-China trade.

A failure to reach agreement, by contrast, could leave businesses preparing for the possibility of renewed tariff measures when the existing arrangements expire.

The situation is particularly important for industries exposed to Chinese manufacturing and US technology restrictions.

Investors are also watching rare-earth supply because any renewed restrictions could affect companies involved in electronics, automobiles, defence and advanced manufacturing.

What the summit can and cannot resolve

The September 24 meeting could produce agreements on specific commercial issues, but the broader US-China relationship contains disputes that are unlikely to disappear after a single summit.

Trade, Taiwan, advanced technology, critical minerals and military competition involve long-term strategic interests on both sides.

The two governments have nevertheless established several mechanisms for continued engagement.

The May 2026 White House fact sheet said Trump and Xi had agreed to establish both a US-China Board of Trade and a US-China Board of Investment.

Those institutions could provide channels for continued discussions after the leaders leave Washington.

What to watch on September 24

The most important indicators from the summit will include any announcement on the tariff truce, Chinese purchases of US goods, rare-earth exports, technology restrictions and the proposed Board of Trade.

Statements concerning Taiwan will also receive close attention, as will any discussion of Iran and energy security.

AI could produce another important signal if the two governments announce new dialogue or safeguards concerning advanced systems and military applications.

For businesses and investors around the world, the immediate question is whether the meeting produces enough concrete agreements to reduce uncertainty in trade and technology.

For the wider US-China relationship, the more significant test will be whether the two governments can maintain communication while continuing to disagree over issues involving economics, security and technology.

The September 24 summit therefore brings together several disputes that extend well beyond tariffs, with decisions made in Washington potentially affecting global supply chains, technology markets, energy trade and international diplomacy.