Rare Earths, Taiwan, and a Trade Truce: Trump and Xi Set for a 5-to-3 Agenda Showdown

[Financial News, New York = Reporter Lee Byung-chul]President Donald Trump departed for Beijing for a historic summit with President Xi Jinping of China. Trump said he would focus on trade issues with Xi, but kept his distance from the war in Iran. The move appears aimed at preventing China from gaining more leverage through the Iran issue.
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Before leaving the White House for China on the 12th local time, Trump told reporters, "There is a lot to discuss" with Xi, adding that "trade will be the main topic." The United States has identified five key agenda items for the summit: agricultural and Boeing purchases, easing rare earth export restrictions, semiconductor export controls, mediation in the Iran war, and an extension of the trade truce.
The New York Times (NYT) reported that Scott Bessent, the finance minister, led negotiations with China ahead of the visit, calling it evidence of how important Trump considers the trade and economic relationship between the two countries. In previous administrations, the secretary of state took the lead in preparing summit talks.
Elon Musk of Tesla, Tim Cook of Apple, and Kelly Ortberg, CEO of Boeing, are also expected to join the summit's economic delegation. They are set to discuss expanding the Chinese market, as well as supply chain and artificial intelligence (AI) cooperation.
China is expected to make Taiwan, easing U.S. technology controls, and reducing tariffs and pressure on China its main agenda items. Taiwan, in particular, is one of Beijing's most sensitive issues. China has repeatedly urged the United States to stop arms sales to Taiwan and to state its opposition to Taiwan independence.
Patricia M. Kim, a China expert at the Brookings Institution, told the Financial Times (FT) that "China has made it very clear that it is deeply unhappy about the recent Taiwan arms sales package and the large package now under additional review," adding that "Xi Jinping will probably ask Trump to delay the next arms sales package or scale it back."
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On ending the war with Iran, however, Trump drew a careful line. "We will have a long conversation about that (Iran)," he said. "He is my friend, and many good things will happen."
A moment later, Trump added, "To be honest, I wouldn't say Iran is one of the main topics," stressing that "we are handling Iran well, and either we will reach a deal or they will be wiped out." The remarks are being read as an attempt to curb China's efforts to expand its diplomatic influence through the Iran issue.
Trump is scheduled to arrive in Beijing on the night of the 13th, China time, and begin a three-day, two-night visit. His meeting with Xi is set for 10 a.m. on the 14th. The face-to-face summit comes about six months after their last meeting in Busan at the end of October last year. It is the first time the two leaders will meet in Beijing in about nine years, since November 2017 during Trump's first term.
The meeting had originally been planned for late March to early April, but the trip was pushed back by about two weeks because of the fallout from the U.S.-Israel war with Iran, which began a month earlier.
During the visit, Trump is expected to meet Xi at least six times, including at the official summit, a tour of Temple of Heaven Park, and a state dinner.
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pride@fnnews.com Reporter Lee Byung-chul Reporter