Trump and Xi Meet in Washington: Trade, AI, and Taiwan Top Agenda

Trump and Xi Jinping are meeting in Washington at a pivotal moment for US-China relations, with trade, technology, AI, and Taiwan high on the agenda. The environment is markedly different from their first US meeting in 2017. China has strengthened its position in critical technology sectors and global supply chains, enhancing its ability to respond to US economic pressure. Friction points have multiplied, from tariffs and microchips to rare earths and Asian security. US Treasury Secretary Scott Bessent has proposed a new US-China dialogue on AI, including a mechanism for mutual notification in case of a serious incident. China's trade surplus reached about $1.2 trillion last year, and its dominance in rare earth supply chains gives it leverage. Taiwan remains the most sensitive issue, with Trump reportedly viewing a $14 billion arms package to Taipei as a negotiating tool. However, China faces domestic economic challenges including low consumption, property sector problems, and youth unemployment, making avoidance of a new trade war particularly important for Xi.