Trump and Xi Reach Trade Deals Amid Taiwan Tensions

President Donald Trump and Chinese President Xi Jinping concluded a high-stakes summit in Beijing on May 15, 2026, aimed at stabilizing bilateral relations. The leaders reached a preliminary agreement for China to purchase 200 Boeing jets and established bilateral trade and investment councils to resolve disputes. Trump touted these as "fantastic trade deals" and noted progress on agricultural market access, including renewed export permits for American beef. However, analysts noted a lack of formal financial frameworks, and Boeing shares fell 4% as the aircraft order was lower than the 500 jets previously anticipated.

Geopolitical tensions remained a central point of friction. President Xi warned that mishandling the Taiwan issue could push relations to a "very dangerous place" and lead to "clashes and even conflicts." Trump expressed uncertainty regarding a previously authorized $11 billion arms package for Taiwan, stating he had not yet decided on the sale after hearing Xi's strong opposition. In response, Secretary of State Marco Rubio affirmed that U.S. policy on Taiwan remains unchanged and that it would be a "terrible mistake" for China to take the island by force.

The leaders also discussed the war in Iran and the closure of the Strait of Hormuz. While both agreed the strait must remain open for energy flow, Trump declined to ask Beijing for favors to end the conflict. The summit ended with Trump inviting Xi for a reciprocal visit to the White House in September, with both leaders describing the current state of their relationship as one of constructive strategic stability.