President Donald Trump’s upcoming summit with Chinese President Xi Jinping in Beijing is expected to be largely dominated by discussions concerning the Iran conflict, potentially diverting attention from crucial trade tariff negotiations and rare earth supply issues. A smaller U.S. business delegation is anticipated, a shift from previous high-profile meetings.
While the focus on Iran may sideline economic talks, a resolution to the conflict could significantly benefit global business. The summit’s outcome could signal shifts in U.S.-China business engagement and impact global markets for critical resources like rare earths.
BEIJING — The looming Iran conflict is poised to dominate the upcoming summit between U.S. President Donald Trump and China's Xi Jinping, potentially overshadowing critical discussions on trade tariffs and the supply of rare earth minerals. The summit, scheduled for May 14-15, is the first presidential visit by a U.S. leader to China since 2017.
U.S. Treasury Secretary Scott Bessent has confirmed that Iran will be a key agenda item. This focus gains significance as China recently hosted Iran's foreign minister for the first time since the conflict began in late February. This diplomatic engagement has fueled hopes for a potential peace deal, which has already influenced global oil prices and boosted stock markets.
In a notable shift from previous engagement styles, the U.S. government declined China's invitation to arrange industry-specific meetings between senior Chinese leaders and U.S. CEOs. This decision, according to a U.S. executive familiar with the matter, was intended to prevent American businesses from appearing overly aligned with Beijing. As of Tuesday, the White House had not formally invited executives to join Trump's delegation, and a proposed list of two dozen leaders might be reduced by half.
Among the executives expected to accompany Trump are the CEOs of Boeing and Citigroup. Boeing, in particular, is anticipated to finalize its first significant order from China in almost a decade around the time of the summit.
While Chinese President Xi Jinping has hosted numerous national leaders this year, including those from the U.K. and South Korea, often accompanied by substantial business delegations, corporations might welcome a reduced focus on commercial issues if it means resolving geopolitical tensions. Hai Zhao, director of international political studies at the Chinese Academy of Social Sciences, suggested that an end to the Iran war would be a "great relief to global business" and a major success for the summit.
However, recent escalations in the Strait of Hormuz, with both the U.S. and Iran trading accusations over attacks, add a layer of complexity. A Chinese-owned oil tanker was reportedly struck in the strait a few days prior, according to Chinese media, although this could not be independently confirmed.
The reduced U.S. business delegation for this trip contrasts sharply with Trump's May 2025 trip to Saudi Arabia, which included over 30 U.S. executives, and his 2017 visit to China, where nearly 30 CEOs signed deals exceeding $250 billion.
Despite the smaller business contingent, the visual of Trump and Xi together could still signal a warming of relations and encourage engagement with the American business community in China, according to Michael Hart, president of the American Chamber of Commerce of China. He noted increased hesitancy from Chinese officials to engage with U.S. businesses following U.S. military actions earlier this year.
China's Ministry of Foreign Affairs expressed that Beijing welcomes U.S. business expansion and hopes for continued advancement of bilateral economic relations. The Ministry of Commerce did not respond to a request for comment.
Meanwhile, some pressing business issues are seeing a de-escalation. Both nations appear to be scaling back recent confrontations concerning U.S. sanctions and tech restrictions, while reports suggest a growing focus on cooperation regarding the escalating security threat of AI. Scott Kennedy, a senior advisor at the Center for Strategic and International Studies, anticipates that deals on Chinese purchases of U.S. soybeans and Boeing airplanes are likely to be finalized. He also expects discussions on U.S. plans to establish trade and investment "boards" to manage specific bilateral issues.
Kennedy believes the meeting will primarily solidify China's recent advantages. Beijing's key concerns are expected to include tariffs, Taiwan's status, and U.S. restrictions on advanced technology exports. China was among the first major countries to implement retaliatory tariffs following the Trump administration's announcements in April 2025.
Changes to China's stringent rare earth export controls could have global implications, affecting not just the U.S. but all nations reliant on these critical materials.
