Iran, Taiwan, AI and trade set to dominate high-stakes Donald Trump-Xi Jinping talks in China

Donald Trump is currently on a state visit to China, marking the first such trip by a sitting US president in nearly a decade.

The visit comes at a time of mounting geopolitical tensions, a prolonged Middle East conflict and growing strategic rivalry between Washington and Beijing.

With relations between the world’s two biggest powers remaining strained on several fronts, Trump’s meeting with Chinese President Xi Jinping is expected to focus on a series of high-stakes global issues. According to a report by The Guardian, five major topics are likely to dominate discussions between the two leaders.

1. US-Iran conflict and the Strait of Hormuz

One of Trump’s key objectives during the visit is expected to be seeking China’s support in pushing Iran toward peace negotiations and reopening the Strait of Hormuz.

So far, Beijing has largely avoided direct public involvement in the US-Iran conflict. However, China has significant economic interests in the region, with nearly half of its crude oil imports passing through the strategic waterway.

China is also concerned that any prolonged disruption to global oil supplies could trigger a wider economic slowdown and hurt Chinese exports.

The issue has become more complicated after the US imposed sanctions this week on several Chinese companies accused of helping Iranian oil shipments and allegedly supplying satellite imagery used in Iranian military operations. Beijing has denied the accusations.

The visit also follows last week’s trip to Beijing by Iranian Foreign Minister Abbas Araghchi.

2. Rising tensions over Taiwan

Taiwan is expected to remain another major flashpoint in the discussions.

China is likely to pressure the US over recent comments by Trump indicating openness to discussing American arms sales to Taiwan — the self-ruled island that Beijing considers part of its territory despite never having governed it.

Last December, Trump approved an $11 billion arms package for Taiwan, reportedly the largest weapons deal ever signed for the island, though the shipments were never delivered.

Beijing is also expected to push Washington to alter its diplomatic language on Taiwan, specifically by explicitly “opposing” Taiwanese independence rather than merely “not supporting” it.

The issue has already caused friction between the two countries in recent weeks. China’s foreign minister reportedly urged US Secretary of State Marco Rubio to “make the right choices” on Taiwan during a recent phone call.

3. Intensifying AI rivalry

Artificial intelligence has increasingly become a major battleground between the two superpowers, with the competition often described as a technological cold war.

In April, the US accused China of stealing intellectual property from American AI firms on a large scale — allegations that Beijing strongly denied.

China, meanwhile, has criticised Washington’s restrictions on the export of advanced AI chips manufactured by Nvidia.

Although the White House announced earlier this year that Nvidia would be allowed to export its H200 chip to China, shipments have reportedly still not begun.

4. Trade tensions and critical minerals

Trade remains one of the most contentious aspects of US-China relations.

Last year, Trump imposed tariffs exceeding 140 percent on Chinese imports, escalating tensions between the two economies. In response, China restricted exports of magnets and rare earth minerals to the US.

As of May 2026, Washington still maintains baseline tariffs of around 10 percent on many Chinese goods despite some temporary easing of retaliatory measures imposed during the 2025 trade war escalation.

The issue has gained additional importance due to growing concerns in the US over access to critical minerals used in military equipment and advanced technologies, areas where China dominates global supply chains.

According to reports, Beijing may announce major purchases involving Boeing aircraft as well as American agricultural and energy products during the visit.

In exchange, China is expected to push for reduced US restrictions on advanced semiconductor exports.

5. Fentanyl and drug trafficking concerns

The fentanyl crisis is also expected to feature prominently on Trump’s agenda.

For years, the US has accused Chinese businesses of supplying chemical ingredients used by Mexican drug cartels to manufacture fentanyl-based narcotics.

The issue remains politically important for Trump domestically, particularly among his MAGA support base.

However, analysts believe Trump’s leverage on fentanyl negotiations weakened after China resisted earlier tariff threats linked to the issue. The two countries also clashed over fentanyl and trade policies during a UN narcotics meeting in March.

China, meanwhile, reportedly wants its name removed from the US State Department’s annual list of “major drug transit or illicit drug producing countries,” which is scheduled to be updated later this year.