U.S.-China trade negotiations may stall as Iran dominates the agenda at this week’s summit, delaying tariff and rare earth supply discussions.
U.S. President Donald Trump and Chinese President Xi Jinping will prioritize Iran discussions during their May 14-15 summit, reducing time for tariff and rare earth supply negotiations. U.S. Treasury Secretary Scott Bessent confirmed Iran as a key topic, following China’s recent meeting with Iran’s foreign minister, which boosted hopes for a peace deal and weighed on oil prices.
The U.S. declined China’s invitation for industry-specific meetings with American CEOs, citing concerns over appearances of closeness to Beijing. A proposed list of two dozen executives accompanying Trump may be halved, with Boeing and Citigroup CEOs among those still expected. Boeing is poised to secure its first major Chinese order in nearly a decade during the summit.
While reduced corporate engagement may limit immediate trade progress, markets could react positively if the summit eases geopolitical tensions, particularly around Iran.