Presidents Donald Trump and Xi Jinping are laying the groundwork for what could be a year-long extension of their trade truce, according to a report from the South China Morning Post citing sources familiar with the matter. The deal would likely be sealed during an April summit in Beijing, giving both leaders something to celebrate while kicking the harder trade issues down the road.
For Trump, the timing is politically convenient. With midterm elections looming in November, he's looking for concrete economic wins to tout on the campaign trail. Enter China, which is reportedly prepared to make new purchase commitments that the administration can frame as victories for American exporters. Think soybeans, energy deals, and possibly even auto arrangements that could mirror the recent TikTok agreement.
Interestingly, no U.S. CEOs have been invited to join the delegation. The Trump administration appears concerned about optics, wanting to avoid any perception that it's encouraging American companies to invest more heavily in China. Still, industry-specific deals could emerge, with the TikTok framework potentially serving as a template for how to structure arrangements in other sectors.
The exact date for the summit remains fluid. Beijing is juggling its scheduling around the April 5 Ching Ming festival, and both sides are still hammering out the details. The White House declined to comment when MarketDash reached out.
Bessent Takes Point on Trade Balance
Treasury Secretary Scott Bessent has been busy advancing the administration's China agenda. Senior Treasury officials just wrapped up a visit to Beijing last week, setting the stage for Bessent to hold direct trade talks with Chinese Vice Premier He Lifeng. Bessent said both countries are working to sustain the diplomatic "thaw" and expressed optimism about keeping the momentum going into their next face-to-face meeting.
The core issue? China's massive trade imbalance. Bessent has called the $1 trillion surplus "unsustainable" and made clear that Trump's April visit will center on narrowing that gap while pushing the U.S. toward greater industrial self-reliance. It's a delicate balancing act: maintain diplomatic progress while extracting meaningful economic concessions.
Meanwhile, at a Lunar New Year reception on Tuesday, Chinese Ambassador to the U.S. Xie Feng called for stronger cooperation across agriculture, energy, counter-narcotics, law enforcement, biomedicine, and artificial intelligence. He urged both nations to move past "zero-sum" thinking, though he was crystal clear that Taiwan remains a non-negotiable "red line" for Beijing.
Xi's White House Invitation
Trump revealed in a Wednesday NBC News interview that Xi is expected to visit the White House later this year. The two leaders recently held wide-ranging talks covering trade, Taiwan, Russia's war in Ukraine, and Iran. According to Trump, Xi praised U.S. progress and is considering ramping up China's purchases of American soybeans ahead of the April Beijing trip.
This isn't the first time the two have sat down recently. They met in October at the APEC summit in Busan, South Korea, where discussions covered fentanyl tariffs, soybean purchases, rare earth elements, and broader Chinese export issues. The April summit looks like it will build on that foundation, with both sides hoping to turn tactical wins into something more durable.
