U.S. President Donald Trump (center) is greeted by Chinese Vice President Han Zheng as SpaceX, Twitter, and electric car maker Tesla CEO Elon Musk (right) look on at Beijing Capital Airport on May 13, 2026 in Beijing.
Brendan Smialowski AFP | Getty Images
Hello, my name is Dylan Butts from Singapore. Welcome to another edition of CNBC’s Daily Open.
President Donald Trump descended on Beijing with a group of prominent American CEOs, preparing for a key meeting with Chinese President Xi Jinping amid heightened geopolitical and economic tensions.
Asia-Pacific markets are closely monitoring breakthroughs in trade, technology, and regional security.
enjoy!
What you need to know today
President Trump was welcomed on the tarmac in China by a brass band and flag waver, who performed as he descended the stairs of Air Force One.
The president is accompanied on his trip by executives from some of America’s most valuable companies, including Tesla CEO Elon Musk and Nvidia CEO Jensen Huang.
Mr. Trump and Mr. Xi are expected to address issues such as tariffs, rare earths, artificial intelligence, the Iran war, and Taiwan. Experts predict that China could announce large orders for U.S. aircraft and soybeans after the meeting.
Asia-Pacific markets traded mixed ahead of the meeting on Thursday. In the US, futures prices were little changed.
Overnight on Wall Street, the S&P 500 index hit a new all-time high as traders’ enthusiasm for the technology trade was overshadowed by another better-than-expected inflation report.
U.S. wholesale inflation data released on Wednesday provided another shock, with prices rising 6% year-on-year in April, the steepest annual rise since 2022. The steeper-than-expected inflation numbers are increasing pressure on the Federal Reserve’s leadership and complicating the economic picture as President Trump grapples with high-level diplomacy.
In a significant development for US monetary policy, Kevin Warsh has secured Senate confirmation as the next Federal Reserve Chairman. His leadership will be immediately tested by persistent inflation and the potential impact on interest rates from a global energy shock.
Meanwhile, the closure of the Strait of Hormuz continues to have a negative impact on global oil flows, which OPEC reports have fallen by 30% since the start of the Iran war in late February. It also warned of significant risks to demand growth this year.
— Dylan Butts
And finally…
Japan’s global defense business may be on the verge of a major breakthrough
Japan’s easing of decades-old arms export restrictions represents a major opportunity for Japan’s defense industry in a world increasingly hungry for arms.
The world situation seems to be good. On April 27, SIPRI reported that global military spending will reach a record $2.89 trillion in 2025, increasing for the 11th consecutive year.
Countries are “desperate” to acquire weapons such as air defense missiles, artillery shells and armored vehicles, an area where Japanese companies have the potential to expand their market share in the international defense economy, Hiroto Ogi, a senior researcher at the Tokyo-based Institute for Global Economic Research, said in an interview with CNBC.
— Lim Huijie
