Trump-Xi Talks: A Cautious Start With Room to Deal
Markets responded positively to the first day of talks, with U.S. stocks turning green and Bitcoin recovering to $81K. The White House described the session as constructive.
Strait of Hormuz & Iran
Both sides aligned on keeping the strait open and free from Iranian tolls. Xi pushed back on any militarization of the waterway, and the two leaders also agreed that Iran must not develop nuclear weapons.
Trade
This proved to be the most productive ground. China signaled appetite for more U.S. oil, agricultural goods, and potentially Boeing aircraft. Beijing also reinstated import licenses for hundreds of American beef processing plants, reopening a key trade channel for U.S. farmers. Buying more U.S. oil was framed partly as a way to reduce China's reliance on Hormuz supply routes.
Taiwan The Hard Part
The thorniest issue remains unresolved. Xi reportedly cautioned that U.S.-China relations could enter an "extremely dangerous" phase if Trump sidesteps Beijing's position on Taiwan. No breakthroughs were reported on this front.
Trump extended an invitation for Xi to visit Washington on September 24.
Day one went smoother than many expected. Trade is where both sides have room to deal Taiwan is where the real friction lives.