Trump and Xi meet at White House, extend trade truce but key disputes remain

The talks were followed by an elaborate state dinner.

US President Donald Trump and Chinese President Xi Jinping met at the White House on Thursday for high-stakes talks. The meeting centred on trade, artificial intelligence, Taiwan and the broader strategic rivalry between the world's two largest economies. The talks were followed by an elaborate state dinner, where both leaders struck a notably warm tone and highlighted the long history of engagement between the two countries. Trump described his relationship with Xi as a “truly great friendship”, while Xi called for the US and China to build a “constructive China-US relationship of strategic stability”. The meeting, however, did not erase the major differences between Washington and Beijing. Trade tensions remain unresolved, the two sides continue to differ over artificial intelligence and Taiwan remains a central security flashpoint. The war in Iran also featured in discussions, with Beijing maintaining a position different from Washington's approach to the conflict.

Five key takeaways from the Trump-Xi meeting at the White House.

Trade truce gets more time, but key disputes remain The two countries agreed to extend their existing trade truce by two months, giving Washington and Beijing additional time to negotiate a more durable economic arrangement. US Treasury Secretary Scott Bessent said the extension would provide “more time to see what we can do on the economic front”. The agreement had been due to expire in November, with the extension pushing the deadline into the next phase of negotiations. The pause does not resolve the central disputes between the two sides. Tariffs, Chinese purchases of American goods, rare-earth supplies and US technology restrictions remain important areas of disagreement. Bessent had also said Beijing was meeting a commitment to purchase 25 million tons of US soybeans but was behind on a pledge to buy $17 billion in other agricultural goods. US officials have also said Chinese rare-earth deliveries were falling short. For businesses, the extension means lower tariff rates remain in place for now, but uncertainty over the longer-term trading relationship continues.

Taiwan remains a major fault line Taiwan was another central issue in the Trump-Xi discussions, with Xi urging Washington to take a cautious approach to the island. According to China's official news agency Xinhua, Xi asked Trump to “prudently handle the Taiwan question” and urged the US to oppose Taiwan independence. The White House had not immediately released its own readout of the exchange on Taiwan. Beijing considers Taiwan part of China and has repeatedly pressed Washington to stop arms sales to the island. The US, meanwhile, maintains an official policy of encouraging a peaceful resolution of the dispute while providing Taiwan with military equipment. Trump had previously described arms sales to Taiwan as a “very good negotiating chip” with China and postponed final approval of a $14 billion arms package after his May meeting with Xi. The Taiwan issue therefore remains one of the areas where the warmer rhetoric between Trump and Xi has not translated into an obvious change in the underlying positions of either side.

AI exposes different visions for the future Artificial intelligence emerged as another important area of disagreement, even as both leaders acknowledged its growing importance. Trump has argued against imposing new guardrails on AI and said in a social media post that he wanted “to leave it exactly where it is”. He also said that this was China's position. Xi offered a different emphasis. He said the US and China had both the capability and responsibility to develop and manage AI, adding that its development should remain under human control. “We have both the capability and responsibility to develop and manage AI for good, and ensure that the development of AI is always under human control and serves the well-being of the people,” Xi said. The contrasting positions come as Washington maintains restrictions on advanced chips, semiconductors, software and chip-making equipment that can be supplied to China. The prominence given to AI was also reflected in the guest list for Trump's state dinner, which included technology leaders such as Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, Meta CEO Mark Zuckerberg, AMD CEO Lisa Su and Tesla and SpaceX CEO Elon Musk.

Xi warns against a US-China confrontation Xi used his White House remarks to argue that competition between the US and China should not develop into open conflict. He invoked the “Thucydides Trap”, a term used to describe the risk of conflict between an established power and a rising power. Xi said the danger could be overcome through dialogue, cooperation and stronger mechanisms to prevent crises. “We should strengthen communication. China and the United States are different in national conditions, but through candid, in-depth and continued dialogue, our two countries can understand each other better, seek common ground while shelving differences, and build up mutual trust,” Xi said. He also called for regular military dialogue and stronger mechanisms for crisis communication. “We should coexist in peace. China and the United States, as two major countries, stand to gain from cooperation and will both lose in confrontation. Our two militaries should maintain regular dialog and improve mechanisms for crisis communication and prevention.” Xi also argued that competition should remain controlled. “It should be a race of catching up with one another, not a wrestle in which one either wins or loses,” he said.

Warm state dinner, but issues remain The state dinner underscored the effort by both leaders to project a more cooperative relationship. Trump said the two countries represented “different systems” but that their ties endured. “President Xi and I both understand we represent different systems, but the ties between our people endure, and we’ve never gotten along better,” Trump said. Xi, meanwhile, invoked several historic moments in US-China relations, including cooperation during World War II and Richard Nixon's 1972 visit to China. He described the wartime relationship as a “friendship forged in blood and fire”. “Like a river that never stops flowing, history never stands still,” Xi said, before calling for cooperation between the two countries. “Together let us nurture the beautiful flowers of Sino-US friendship. Together let us write a new chapter in our friendly relations.” Trump also highlighted his personal relationship with Xi, saying the two had “made tremendous strides” on issues facing their countries. But the warm public messaging was accompanied by continued uncertainty over the most difficult issues in the relationship. There were no reported breakthroughs on Taiwan, AI or the broader strategic competition, while the trade truce remains temporary. The two leaders also discussed the war in Iran. Xi said China supported the US and Iran returning to an interim agreement aimed at winding down the conflict, while Washington has sought greater Chinese pressure on Tehran.