U.S. President Donald Trump (left) and Chinese President Xi Jinping shake hands after a meeting at Gimhae Air Base next to Gimhae International Airport in Busan on October 30, 2025.
Andrew Caballero-Reynolds | AFP | Getty Images
Hello, my name is Hui Jie from Singapore. Welcome to another edition of CNBC’s Daily Open.
Former Chinese leader Deng Xiaoping once said, “It doesn’t matter whether a cat is white or black.” As long as it can catch mice, it’s a good cat.
The same idea may apply to Thursday’s summit between US President Donald Trump and Chinese President Xi Jinping. Few expect the two countries to resolve all their differences, but from the opening remarks of the two leaders, China and the United States appear committed to easing tensions.
And that might be enough to make it a good summit.
What you need to know today
By the time you read this, both US President Donald Trump and Chinese President Xi Jinping will have moved from the negotiating table to the dinner table.
The talks between the two leaders appeared to be amicable so far, with Xi saying the interests of the United States and China are “deeply intertwined” and that competition between the two countries “should be healthy and should be kept within limits.”
Trump said the two countries are “working to foster a more balanced trade relationship” and that the leaders will discuss “pressing issues” around security, technology and artificial intelligence.
President Trump added, “The decisions we make today in these areas can promote peace and prosperity for decades to come.”
The dinner menu also seemed to reflect the conference’s priorities. The White House described the state dinner menu as showcasing “American ingredients with subtle Chinese influences.”
Perhaps the goal, like the menu, will be to keep domestic priorities central while allowing some influence from the other side.
Guests include many of America’s leading CEOs, including: appleMr. Tim Cook, Nvidia‘s Jensen Huang and his wife, Tesla’s Elon Musk and AMD’s Lisa Su. Meta Major U.S. technology companies also participated, including OpenAI and OpenAI.
Chinese business leaders were also expected to attend the dinner, but a person briefed on the preparations told CNBC they were not aware of any Chinese companies being invited to Xi’s visit.
But despite the pomp, Chinese analysts broadly predict it will be a cautious summit with little major outcome, given the leaders’ personal relationships and policy goals.
progress to some extent
However, some progress had already been made before the two leaders met.
China’s Ministry of Commerce confirmed that senior negotiators from the United States and China held their first dialogue specifically focused on artificial intelligence.
Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng discussed establishing a mechanism by which countries can warn each other about AI-related risks.
The talks between the two sides also discussed tariff cuts and an extension of the trade agreement reached last October.
Bessent said the countries had agreed to extend the truce until January, keeping in place tariff cuts and restrictions on China’s export controls on rare earths.
Bond markets are concerned
But while there is widespread optimism about the summit, the bond market appears to have other things in mind.
U.S. Treasury yields hit multi-decade highs on Thursday as investors bet on another rate hike from the Federal Reserve.
Most notably, the 30-year Treasury yield hit a high of 5.501%, the highest level since June 2004. The benchmark 10-year U.S. Treasury yield rose to 5.223%, its highest level since June 2007.
A sharp rise in yields weighed on stock prices, with the Dow Jones Industrial Average dropping 0.31% for its third straight loss. The S&P 500 and Nasdaq Composite were flat.
But the losses were offset by Reuters reporting, citing people familiar with the matter, that U.S. and Iranian negotiators in New York were considering a deal that would bring a gradual end to the Middle East conflict.
The reported deal would see Iran reopen the Strait of Hormuz and the US lift its economic blockade on Tehran.
Oil prices fell from their trading highs on the news, but prices still rose. brent while it rose 2.5% to $105.69 per barrel. west texas intermediate It rose 2.3% to $94.30. Oil prices fell in early Asian trading on Friday, with both indexes lower.
The reported agreement does not mean peace is definitely on the horizon. In Washington, the Senate narrowly rejected a resolution directing President Trump to seek Congressional approval to end the Iran war or continue it.
The measure failed 49-50. Four Republicans joined most Democrats in supporting it, but Democratic Sen. John Fetterman voted against it.
And finally…
Global debt tops $365 trillion as economists warn of ‘vicious cycle’
Economists have warned that rising debt servicing costs will become increasingly expensive, posing significant risks to governments around the world.
Global debt rose by $10 trillion in the first half of this year to more than $365 trillion, according to a study released Wednesday by the Institute of International Finance.
Debt has become a political issue, creating a “vicious cycle between elections and short-term quick fixes and long-term vulnerabilities due to the diminishing marginal utility of high debt,” the IIF warned.
— Jenny Reid
