During this week’s Beijing summit, President Trump and Chinese leader Xi will skip the cultural rituals that once punctuated their meetings. The absence of tours, concerts and student exchanges signals a shift in U.S.–China diplomacy, affecting firms that benefit from the flow of talent and tourism and the tourism sector for companies that depend on cultural diplomacy.

Student numbers have collapsed from 11,000 in 2019 to fewer than 2,000 today, according to the U.S.-China Education Trust. At Peking University in Beijing, bars that once catered to American students now serve mostly Chinese crowds, reflecting the broader decline in exchanges.

Cultural exchanges that once boosted trade and investment—such as the Philadelphia Orchestra’s 1973 debut—now face logistical hurdles. Without established venues, arranging a new tour would cost thousands of dollars and require approval that many see as unlikely in the current climate.

The shrinking soft ties dampen revenue for travel agencies, educational firms and entertainment companies that rely on bilateral flow. Investors will watch how the administration’s stance on visas and cultural funding shapes future market opportunities, as the U.S. and China recalibrate their economic engagement.