Trump and Xi open Beijing summit with new trade council talks

Thursday 14 May 2026 - 13:20

By: Dakir Madiha

Trump and Xi open Beijing summit with new trade council talks

Senior American and Chinese officials are discussing the creation of a new bilateral Trade Council and a separate Investment Council as President Donald Trump opened high-level talks with Chinese President Xi Jinping in Beijing. The proposals, confirmed Thursday by Treasury Secretary Scott Bessent, signal a new attempt to stabilize economic relations between the world’s two largest economies while preserving restrictions tied to national security.

Bessent said the proposed Investment Council would focus on “non strategic and non sensitive” sectors where Chinese companies could invest in the United States. The comments came as Trump began his first presidential visit to China since 2017, accompanied by nearly 17 American business leaders, including Elon Musk of Tesla, Jensen Huang of Nvidia, Tim Cook of Apple and Kelly Ortberg of Boeing.

The proposed Trade Council would formalize commercial flows between both countries on a sector by sector basis. American trade officials first introduced the concept in March after discussions in Paris with Chinese Vice Premier He Lifeng. Officials involved in the negotiations said the body would identify industries where trade expansion could proceed without affecting supply chains tied to defense or strategic technologies. The Investment Council would instead address specific investment disputes and barriers facing Chinese firms operating in the American market.

The discussions have already generated resistance inside Trump’s political coalition. Reports that Chinese officials were considering up to $1 trillion in potential investment into the United States in exchange for reduced security restrictions triggered criticism from several conservative figures. Marjorie Taylor Greene and television host Laura Ingraham publicly raised concerns about the risks tied to deeper Chinese economic involvement in American industries. John Moolenaar also warned that encouraging large Chinese investments could weaken Washington’s industrial strategy and ease pressure on China’s slowing economy.

The White House attempted to calm speculation surrounding the negotiations. Officials said the administration continues to support foreign investment linked to American reindustrialization while maintaining strict national security protections. Bessent and Commerce Secretary Howard Lutnick previously rejected the idea of Chinese electric vehicle production facilities operating inside the United States.

Expectations for major breakthroughs at the summit remain limited. Analysts believe the trade truce reached by Trump and Xi in South Korea last year will likely be extended. China is also expected to announce new purchases of American soybeans, beef and Boeing aircraft during the visit. Bessent indicated that a significant Boeing order could emerge from the meetings. Broader agreements remain difficult as Washington also faces legal challenges over Trump’s tariff powers and continued geopolitical tensions linked to the conflict involving Iran.