Trump, Xi wrap up summit claiming progress stabilising US-China relations

Presidents Donald Trump and Xi Jinping have wrapped up critical talks, claiming to have made important progress in stabilizing US-China relations, even as major disagreements remain between the world’s two biggest powers over Iran, Taiwan and more.

Xi welcomed Trump to his official residence, Zhongnanhai, on Friday for their final participation in the summit before the US leader returned to Washington. The leaders took a short walk through the grounds of centuries-old trees and Chinese roses, and walked through a covered corridor with green columns and arches painted with birds and traditional Chinese mountain scenes.

Over tea and lunch, Trump and Xi – with top aides and translators in tow – huddled for nearly three hours before the US leader completed his three-day visit to China.

“It’s been a really great few days,” Trump told reporters.

Xi, in turn, called the visit a “landmark visit.” “We have built a new bilateral relationship, or rather a constructive, strategic, stable relationship,” he said.

But the optimistic view clashes with some difficult truths about the thorniest issues between the two superpowers.

Beijing has shown little public interest in U.S. requests to become more involved in resolving the Iran conflict, even though Trump said in an interview with Fox News’ Sean Hannity that Xi had offered to help in their talks. In recent weeks, the U.S. State Department has accused Chinese companies of providing satellite images to the Iranian government and the Treasury Department has targeted Chinese oil refiners accused of buying oil from Tehran, as well as shippers of the oil.

And the White House believes China can still do more to stem the flow of Chinese precursors into Mexico, which are used to make illegal fentanyl, which has wreaked havoc among many American communities.

Xi, meanwhile, warned Trump in private conversations that their differences on the self-ruled island of Taiwan, if handled poorly, could push the world’s dominant powers toward “clashes and even conflict,” Chinese government officials said.

Trump seemed impressed by the rural grounds and noted that the roses were the most beautiful he had ever seen. Xi promised to send him some rose seeds.

The complex is wrapped around two artificial lakes that were built for the pleasure of emperors. Zhongnanhai is often compared to the White House, the Kremlin or the Blue House of South Korea. But unlike the other presidential residences, Zhongnanhai does not serve as the main location for diplomatic visits. The invitation appeared to be an attempt by Xi to add a personal touch to an American leader who appreciates grand gestures.

‘I actually think he’s a warm person. But he is purely business,” Trump said of Xi in the Fox News interview. “There are no games.”

The Chinese government also said goodbye to Trump with great pomp and ceremony.

Chinese Foreign Minister Wang Yi saw a smiling Trump leaving the airport. And schoolchildren dressed in the light blue and white colors of Air Force One waved American and Chinese flags in a coordinated motion as the American president arrived to board the plane.

Taiwan remains the most important issue for China

Xi’s sharp language on Taiwan was evident during the visit, with Chinese government officials emphasizing that disagreements on the self-governing island pose the greatest risk to US-China relations.

But Secretary of State Marco Rubio told NBC News that U.S. policy toward Taiwan was “unchanged” and warned that it would be “a terrible mistake” if China tried to take Taiwan by force. He also viewed Xi’s comments as standard practice.

“They always put it on their side. We always make our position clear, and we move on to the other issues,” said Rubio, one of the senior aides who joined Trump for the talks.

China has sought in recent weeks to put more emphasis on its position that Taiwan is at the “core” of its interests and crucial to ensuring a stable relationship with the US. Trump has at times shown ambivalence toward Taiwan, sparking speculation that he might be open to easing ties with Taipei.

Trump has demanded Taiwan increase defense spending, and in December the White House announced an $11 billion arms package for Taiwan, the largest ever for the island democracy.

But the US has yet to start implementing the arms sales, and Trump had said he expected to discuss the issue with Xi in Beijing. He also grumbles that Taiwan has “stolen” the US semiconductor industry and has called on Taiwan to pay the US for protection.

China wants the Strait of Hormuz opened

The leaders agreed that the Strait of Hormuz – effectively closed since the start of the conflict in Iran – must be reopened to support global energy needs. About 20 percent of the world’s oil flowed through the strait before the war began on February 28.

“We feel very much the same about (how) we want it to end,” the president said with Xi at his side. “We don’t want them to have a nuclear weapon.”

White House officials say Xi also opposed the imposition of tolls on ships crossing the strait and expressed interest in China potentially buying U.S. oil to reduce China’s dependence on Gulf oil in the future.

Trump had played down earlier this week the importance of talks with Xi over the 11-week war in Iran, which has led to rising energy prices and threatens to plunge the global economy into recession if the conflict does not end soon.

But before Air Force One could land in Beijing, Rubio said administration officials would convince Chinese officials why they should invest in pushing Iran to reach an agreement to end the war.

The Chinese, who have been critical of the American and Israeli bombing of Iran, have unique influence as Iran’s largest trading partner. The Chinese government has managed to weather the economic damage caused by the war using its strategic oil reserves, but that safety net is not unlimited. Economists say the conflict in Iran could still have a major impact on China’s export-driven economy.

Will Trump announce big business deals?

The White House stressed ahead of the visit that Trump would not make the trip without an eye to securing results before he leaves, suggesting there could be announcements on trade.

Trump said “fantastic trade deals” were struck during the visit, but gave no further details

The U.S. side had hoped to make good on Chinese commitments to buy U.S. soybeans and beef. Trump told Fox News that Xi had indicated that China would make commitments to buy 200 Boeing planes from the US.

The leaders on Thursday discussed increasing U.S. agricultural purchases by the Chinese and opportunities for both sides to expand investments in each other’s markets, the White House said. Trump administration officials also want to work toward establishing a trade council with China to address trade differences between the countries.

Trump, whose delegation for the trip included the CEOs of Mastercard and Visa, said he had also worked with Xi to expand access to the Chinese market for U.S.-based credit card companies.