BEIJING—The Iran war is likely to be the focus of the summit between President Donald Trump and Chinese President Xi Jinping, leaving little room for resolving issues such as tariffs and rare earth supplies.
Treasury Secretary Scott Bessent has already said Iran will be on the agenda at the meeting, scheduled for May 14th and 15th. And earlier this week, China hosted Iran’s foreign minister for the first time since the war began in late February, raising hopes for a peace deal, lowering oil prices and spurring stock market gains.
The U.S. government turned down China’s invitation to hold industry-specific meetings between senior Chinese leaders and U.S. CEOs because it thought it might make American companies appear too close to China, according to a U.S. executive with direct knowledge of the deal. As of Tuesday, the White House had not yet formally invited top officials to Trump’s tour, and the proposed list of 20 leaders could be cut in half, the person added.
boeing The U.S. aircraft giant is hoping to secure its first major order from China in nearly a decade, and CEO Kelly Ortberg is expected to accompany Trump, a person familiar with the matter told CNBC on Thursday.
citygroup CEO Jane Fraser also confirmed the CNBC report on Friday, saying she also plans to take part in the trip.
“I think it’s very important to see engagement” between the two economic powers, he told CNBC’s Leslie Picker. “We all need that kind of engagement to happen.”
Fraser also emphasized the importance of China to his company.
“From Citi’s perspective, we’ve been in China for 124 years. China is a very important market,” he said. We have many multinational clients operating in China. We also note that many Chinese companies are growing and expanding globally for the benefit of all. ”
Mr. Xi has hosted more than a dozen national leaders this year from Britain to South Korea, who often bring large business delegations with them. Still, companies may not object to a reduction in focus if large geopolitical overhangs are resolved.
Hai Zhao, director of international political research at the Chinese Academy of Social Sciences, a state-run think tank, said the end of the Iran war would be a “huge relief for world business.” The summit between Mr. Trump and Mr. Xi will be “remembered as a very successful one.”
However, the United States and Iran once again engaged in a shootout in the Strait of Hormuz, with each accusing the other of launching the attack. According to Chinese media outlet Caixin, a Chinese-owned oil tanker also collided with the ship a few days earlier. CNBC could not independently confirm this report.
The participation of a small number of senior officials on President Trump’s trip to China would be in contrast to his trip to Saudi Arabia last May, when he was accompanied by more than 30 U.S. officials. In 2017, when President Trump, the last sitting US president, visited China during his first term, he was accompanied by nearly 30 CEOs and signed 37 major contracts worth more than $250 billion.
But Michael Hart, president of the Beijing-based China-American Chamber of Commerce, said the expected image of Mr. Trump and Mr. Xi together could still send a signal within China that engagement with American companies is again acceptable.
“Since the U.S. military action earlier this year, Chinese authorities have become increasingly hesitant to engage with the U.S. business community,” he said.
The Ministry of Foreign Affairs told CNBC that China welcomes U.S. business expansion and looks forward to the two companies continuing to develop bilateral economic relations. China’s Ministry of Commerce did not respond to a request for comment.
On the other hand, some business-related issues are becoming less urgent. According to reports, the two countries are looking to cooperate on the growing security threat of AI, while rolling back recent conflicts over US sanctions and technology.
And there may still be some progress to be made. President Trump is expected to reach an agreement on China’s purchases of U.S. soybeans and Boeing aircraft, said Scott Kennedy, senior adviser and director of China Business and Economics at the U.S.-based Center for Strategic and International Studies.
He also expects Trump to discuss the United States’ plan to establish a trade and investment body called the Council to handle specific bilateral issues.
“This meeting will most likely solidify the advantages China has gained over the past year,” President Kennedy said.
Kennedy said Beijing’s focus is likely to be on tariffs, Taiwan’s status and U.S. restrictions on access to China’s advanced technology. China became the first major country to take retaliatory measures against the additional tariffs announced by the Trump administration in April 2025.
Meanwhile, changes to China’s increasingly stringent rare earth export regulations will have repercussions around the world, affecting all countries, not just the United States.
—CNBC’s Matthew Chin and Kevin Breuninger contributed to this report.
