Trump and Xi Open Beijing Summit With Trade, Taiwan, and the Thucydides Question
CNBC reported Thursday that President Donald Trump and Chinese President Xi Jinping opened a two-day summit in Beijing, setting an optimistic early tone on one of the world’s most consequential bilateral relationships. Trump told Xi the two nations would be on better terms than ever, with cameras from state broadcasters capturing the opening exchange at the Great Hall of the People.
Thucydides Trap Takes Center Stage
Xi used his opening remarks to pose a pointed historical question. He asked whether the United States and China could avoid the so-called Thucydides Trap, a concept describing how rising and ruling powers have historically stumbled into armed conflict. Harvard professor Graham Allison, who popularized the theory, told CNBC he expects the informal trade truce the two leaders struck in South Korea last autumn to be formalized into a binding agreement. He described the summit’s defining ambition as “stabilization.”
A Packed and Sensitive Agenda
Beyond tariffs and trade flows, the two-day agenda is expected to touch on Taiwan, Iran, rare earth supply chains, and artificial intelligence governance. Scott Kennedy, senior adviser at the Center for Strategic and International Studies, noted that China enters this meeting in a far stronger position than during Trump’s first-term visit in 2017. Beijing was the first major economy to retaliate against Trump’s sweeping Liberation Day tariff package introduced in April 2025, and that defiance has shaped Xi’s posture heading into the talks. Kennedy cautioned that a grand bargain remains unlikely, even as the ceremonial warmth signals how much both sides want a stable floor under the relationship.
Business Heavyweights Join the Delegation
The U.S. contingent extended well beyond the usual diplomatic corps. Tesla chief Elon Musk, Apple CEO Tim Cook, and Nvidia CEO Jensen Huang all traveled to Beijing as part of Trump’s delegation, underscoring how deeply American corporate interests are intertwined with the outcome of the talks. Secretary of State Marco Rubio and Secretary of War Pete Hegseth were also present for the opening session alongside senior Chinese officials including top diplomat Wang Yi.
What Comes Next
The two leaders are scheduled to hold multiple working sessions through Friday midday. Trump is expected to visit the Temple of Heaven and attend a state dinner Thursday evening. Xi is anticipated to return the visit with a trip to the United States later in the year, with possible sideline meetings at APEC and G20 events. Markets are watching closely for any signal on whether the existing tariff truce will be extended or upgraded into something more durable.
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