President Trump’s Beijing visit arrives as Xi Jinping uses the Iran war to strengthen his bargaining position. By positioning China as a potential peace broker, Xi hopes to extract concessions on Taiwan and secure a longer trade truce. The timing follows last year’s mineral‑leveraged talks that produced a year‑long tariff pause between the two economies, and both leaders face domestic pressure to show strength.

Washington has already delayed a $13 billion Taiwan arms package to avoid antagonising Beijing, and Trump signaled he will raise the issue in talks. Analysts say Beijing could leverage its role in keeping the Strait of Hormuz open—about 40 % of China’s oil imports flow through the waterway—to press the United States for assurances against a Taiwan blockade. China’s influence could also temper global oil price volatility.

Beyond immediate deals, Xi seeks formal recognition as the United States’ peer, a status he has pursued since 2012. By demanding stability—no new tariffs, export bans, or sanctions—Beijing hopes to buy time to deepen self‑reliance in chips and AI while continuing purchases of Boeing jets, soybeans and beef. Investors will watch China’s commodity purchases for clues on future demand. The summit will test whether those concessions materialise.