US President Donald Trump arrived in Beijing on Thursday for high-stakes talks with Chinese leader Xi Jinping, as tensions over Iran, Taiwan, trade, and technology continued to shape relations between the world's two biggest economies. While both sides projected warmth and stability in public, major disagreements remained unresolved behind closed doors.
Grand Welcome and Public Praise
Xi welcomed Trump at Beijing's Great Hall of the People with a lavish state ceremony that included a military band, a 21-gun salute, and crowds of schoolchildren waving Chinese and American flags. Trump praised Xi during the visit, calling him 'a great leader' and saying relations between Washington and Beijing could become 'better than ever before.'
Taiwan Remains Core Disagreement
However, the cordial atmosphere contrasted sharply with warnings issued by the Chinese president over Taiwan. According to Chinese state media, Xi told Trump that mishandling the Taiwan issue could push both countries towards 'clashes and even conflict.' The remarks came amid continued tensions over a proposed US arms package for Taiwan and growing concern in Beijing over Washington's support for the self-governed island. Xi warned that mishandling the issue could put the entire bilateral relationship 'in great jeopardy,' reflecting Beijing's anger over a planned $11 billion US arms package for Taiwan.
US Secretary of State Marco Rubio attempted to calm concerns, insisting US policy towards Taiwan remains 'unchanged.' However, he also warned it would be 'a terrible mistake' for China to seize the island by force. Taiwan's government later thanked Washington for its 'long-term support.' The sharp exchanges highlighted how Taiwan remains the most dangerous flashpoint in China-US relations, even as both governments attempt to maintain broader diplomatic and economic cooperation.
Iran and Strait of Hormuz
The summit also focused heavily on the ongoing Iran conflict and the future of the Strait of Hormuz, a crucial global oil shipping route. Trump said Xi had offered China's assistance in helping negotiate an end to the war and reopening the strait. Trump said Xi told him: 'I would love to be a help, if I can be of any help whatsoever.' Trump also claimed Xi assured him that China would not supply military equipment to Iran, although Beijing still intends to continue purchasing Iranian oil. China's role is particularly significant because it remains the largest buyer of Iranian oil. While Washington hopes Beijing can pressure Tehran towards a deal, it remains unclear how far China is willing to use its leverage.
Global Markets Rally
Despite the political uncertainty, global markets reacted positively. Wall Street surged to fresh record highs, driven by continued enthusiasm around artificial intelligence and technology stocks. The S&P 500 and Nasdaq ended at record levels, while European shares also rose strongly. Tech companies led gains after Cisco Systems surged more than 13 percent following a strong earnings report, while semiconductor startup Cerebras soared during its Nasdaq debut. Investors also hoped the Beijing summit could ease geopolitical tensions, particularly surrounding Iran and the Strait of Hormuz. Briefing.com analyst Patrick O'Hare said: 'The sentiment remains predominantly bullish.' However, he cautioned that the summit appeared 'mostly more of a glad-handing type of engagement' with 'not a lot of substance really to change things.'
Trade and Economic Cooperation
Trade remained another major talking point. Trump said China could expand purchases of American agricultural goods and aircraft, including a possible order for Boeing jets, as both sides attempt to avoid a renewed trade war after last year's tariff disputes. Xi stressed that 'cooperation benefits both sides, while confrontation harms both.' The Chinese leader even linked his national vision with Trump's political slogan, saying: 'Achieving the great rejuvenation of the Chinese nation and making America great again can go hand in hand.'
The carefully choreographed visit featured military honours, a state banquet, cultural tours, and extensive bilateral discussions. Xi described China-US ties as 'the most important bilateral relationship in the world' and urged both countries to avoid damaging the partnership. Although analysts said few concrete breakthroughs emerged from the meetings, both leaders appeared eager to lower tensions publicly and stabilise relations amid fears of worsening global instability linked to the Middle East war and economic uncertainty.
