Iran focus at Trump-Xi summit may delay progress on tariffs, rare earths

The upcoming summit between U.S. President Donald Trump and China’s Xi Jinping is expected to focus heavily on the Iran war, overshadowing discussions on issues such as tariffs and rare earth supplies. U.S. Treasury Secretary Scott Bessent has confirmed that Iran will be a key topic during the meetings scheduled for May 14 and 15. This comes after China recently hosted Iran’s foreign minister for the first time since the conflict began in late February, sparking hopes for a potential peace deal and leading to a drop in oil prices and a surge in stock markets.

The U.S. government has declined China’s invitation to organize industry-specific meetings between senior Chinese leaders and U.S. CEOs, citing concerns about appearing too close to Beijing. As a result, the White House has yet to formally invite executives to join Trump on the trip, with a proposed list of two dozen leaders potentially being halved. However, CEOs from companies like Boeing and Citigroup are reportedly set to accompany Trump, with Boeing expected to secure a significant order from China during the summit.

While the focus on the Iran war may limit discussions on other economic issues, such as tariffs and rare earth supplies, the potential resolution of this geopolitical challenge could bring relief to global businesses. According to Hai Zhao, a director at the Chinese Academy of Social Sciences, ending the Iran war would be a major success for the Trump-Xi summit.

Despite the ongoing tensions between the U.S. and Iran, with recent incidents in the Strait of Hormuz raising concerns, there is hope that the summit could pave the way for progress on other fronts. Reports suggest that Trump may secure deals on Chinese purchases of U.S. soybeans and Boeing airplanes, while also discussing plans to establish trade and investment organizations to address specific bilateral issues.

Overall, the summit is expected to address key issues such as tariffs, Taiwan’s status, and U.S. restrictions on Chinese access to advanced technology. While the focus on the Iran war may dominate discussions, the potential for progress on trade and economic cooperation remains a possibility. Stay tuned for updates on this high-stakes meeting between two economic superpowers.