Trump Xi Summit Turns Trade Into a Wider Energy and Tech Bargain

President Trump’s Beijing summit with President Xi Jinping is no longer only about trade. It is becoming a wider negotiation over energy security, technology controls, rare earths, Taiwan, agriculture, aviation, and the future structure of US China economic relations.

Key insights:

• A White House official said Trump and Xi held an intensive meeting and agreed on the importance of keeping the Strait of Hormuz open, placing energy security at the center of the talks.
• Trump also discussed increasing Chinese purchases and investment linked to US agriculture and oil, while Xi reportedly showed interest in buying more US oil.
• The US goods deficit with China fell to USD 202.1 billion in 2025, down from USD 295.5 billion in 2024, a reduction of about USD 93.4 billion.
• In Q1 2026, the US goods deficit with China stood at about USD 33.5 billion, suggesting a lower run rate than previous years.
• China is estimated to buy around 80 to 90 percent of Iranian crude exports, giving Beijing potential leverage over Tehran as Hormuz disruption affects global energy flows.
• US gas is also back on the table, with reports noting Chinese contracts to import around 28 million tonnes annually of US gas through the end of the decade.
• Rare earths remain one of China’s strongest cards. Beijing controls about 70 percent of global rare earth production and a larger share of processing capacity.
• Taiwan remains the most sensitive security file, with Beijing seeking lower US arms sales and tighter limits on political support for Taipei.

The main takeaway is that the summit is less about a reset and more about managed leverage. The US wants market access, supply chain security, energy stability, and visible export wins. China wants tariff predictability, technology space, Taiwan restraint, and recognition of its strategic influence.