Chinese leader Xi Jinping told US President Donald Trump that trade talks were progressing at the start of a two-day summit on Thursday, but warned that disagreements over Taiwan could lead to a dangerous path in relations between the two countries, Reuters reported.
The Chinese leader's statement, carried by the official Xinhua news agency, laid the groundwork for what Trump described as "the biggest summit ever," after a ceremonial welcome at the imposing Great Hall of the People in Beijing, according to Reuters.
Given Trump's declining popularity due to the war in Iran, the US president's first visit to the US's main strategic rival since his last trip in 2017 has taken on added importance.
After an opening ceremony that included an honor guard and scores of children excitedly waving flowers and flags, Xi opened the summit by telling Trump that stable relations between the world's two largest economies benefit the entire world.
"When we cooperate, both sides benefit; when we clash, both sides suffer," he said in a statement to the media in SI.
"You're a great leader, sometimes people don't like me to say it, but I'm going to say it anyway," Trump replied. "There are those who say this could be the greatest summit ever," he added.
Behind closed doors, Xi said talks between the economic and trade teams on Wednesday achieved an "overall balanced and positive outcome," according to a statement by China's state-run Xinhua news agency.
The latest round of talks aimed to maintain the trade truce that Trump and Xi reached last October and establish mechanisms to support future trade and investment, officials familiar with the matter said.
Xi also raised the issue of Taiwan, a democratically governed island territory claimed by China and armed by the US.
The Chinese leader told Trump that Taiwan was the most important issue in US-China relations and that handling the issue poorly could lead to conflict and an extremely dangerous situation, according to a Chinese report on the talks, which ended after just over two hours.
Trump also had a group of CEOs on the trip who want to resolve issues with China, including Elon Musk and Jensen Huang, the CEO of Nvidia, who was a late addition. Trump said his first request to Xi would be to "open up" China to American industry.
Musk, Huang and Apple's Tim Cook were present during the initial talks between the leaders, with Musk telling reporters the talks were "great" as he left the Great Hall.
The leaders' meetings this weekend will provide plenty of time for talks between Xi and Trump: after initial talks, they will tour the UNESCO World Heritage Site, the Temple of Heaven, and attend a state dinner on Thursday, before taking tea and having lunch together on Friday, according to a White House statement.
The power dynamics have changed.
The power dynamic has shifted since Trump's last visit to Beijing, when China went out of its way to impress Trump and buy billions in American products, said Ali Vine, senior adviser on U.S.-China relations at the International Crisis Group.
"This time the US, on its own, is recognizing that status," Vine said, noting that Trump had used the term "G2," which refers to the superpower duo, again when he last met with Xi on the sidelines of the APEC meeting in South Korea last October.
Trump is entering the negotiations in a weaker position, according to Reuters.
US courts have limited his ability to unilaterally impose tariffs on exports from China and other countries. The war in Iran has also increased inflation in the US and increased the risk that Trump's Republican Party will lose control of one or both legislative branches in the upcoming November elections.
Although China's economy is weakened, Xi does not face similar economic or political pressures.
Still, both sides want to maintain a trade truce reached last October, in which Trump suspended tariffs on Chinese goods and Xi withdrew the threat of a decline in global supplies of rare metals, vital for the production of items from electric cars to weapons.
They will also discuss forums to support mutual trade and investment and dialogue on artificial intelligence issues.
Washington plans to sell Boeing BA.N planes, agricultural products and energy to China to reduce a trade deficit that has long bothered Trump, while Beijing wants the U.S. to ease restrictions on exports of chip-making equipment and advanced semiconductors, officials involved in the planning said.
Iran and Taiwan in focus
Beyond trade issues, Trump is expected to push China to persuade Iran to reach a deal with Washington to end the conflict. But analysts doubt Xi will be willing to pressure Tehran or end support for its military, given Iran's value to Beijing as a strategic counterweight to the United States.
US Secretary of State Marco Rubio told Fox News that it was in China's interest to help resolve the crisis because many of its ships are blocked in the Persian Gulf and a slowdown in the global economy could hurt Chinese exporters.
For Xi, selling US arms to Taiwan is a priority.
China on Wednesday reiterated its strong opposition to the sale, with the status of the $14 billion package awaiting Trump's approval still unclear. The US is legally obligated to provide Taiwan with defense funds, despite the lack of formal diplomatic ties.
Xi has a planned reciprocal visit that could take place later this year, which would be his first visit to the United States since Trump re-assumed the presidency in 2025.
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