Trump and Xi open Beijing talks; Trump weighs $30B tariff cuts

President Donald Trump opened talks with Chinese President Xi Jinping in Beijing on Thursday, putting trade back at the center of a summit that also includes Taiwan, Iran, rare earths and artificial intelligence. The meeting began at the Great Hall of the People and is scheduled to run through Friday, according to U.S. and Chinese media reports. Trump said in opening remarks that the relationship between the two countries would be “better than ever before,” while Xi asked whether Washington and Beijing could avoid the “Thucydides Trap,” according to official broadcast footage and state media accounts. ### What are Trump and Xi trying to get done on trade? U.S. Trade Representative Jamieson Greer first floated a new “Board of Trade” in March, and Reuters reported that the two sides are now weighing a managed-trade mechanism for goods that do not touch national security red lines. Under that approach, each side could identify about $30 billion of imports for tariff cuts and more predictable market access. (cnbc.com) Four people familiar with the Trump administration’s objectives told Reuters they expected a $30 billion-for-$30 billion framework to launch the mechanism, though it was not clear whether Trump and Xi themselves would name specific products in Beijing. Reuters also reported that broader tariffs and export controls on sensitive technologies would remain in place. (usnews.com) ### Why is the plan limited to “non-sensitive” goods? Greer told Fox Business Network last week that Washington was not trying to remake China’s state-directed economic system and instead was looking for places where the two economies could “optimize trade” and achieve more balance. Reuters said he compared the proposed mechanism to an “adapter” connecting two incompatible systems. (usnews.com) Wendy Cutler, a former U.S. trade negotiator who now heads the Asia Society Policy Center, told Reuters that both sides were “coalescing around” a $30 billion to $50 billion basket of goods for reduced tariffs or other barriers. Her account suggested the discussion had narrowed to a smaller slice of commerce than in earlier rounds of U.S.-China negotiations. (usnews.com) ### How did the summit start in Beijing? Trump arrived in Beijing on Wednesday and was greeted by Chinese Vice President Han Zheng, Ambassador Xie Feng, Vice Foreign Minister Ma Zhaoxu and U.S. envoy David Perdue, according to the Associated Press. The airport ceremony included a military honor guard, a military band and about 300 youths waving U.S. and Chinese flags. (usnews.com) Thursday’s opening session brought the two leaders together for formal talks after that ceremonial welcome. CNBC reported that Xi told Trump the Taiwan issue was the most important question in bilateral relations and warned that mishandling it could push ties to a “dangerous” place, citing Chinese state media. ### What else is on the table besides tariffs? (usnews.com) The Associated Press reported before the summit that Trump wanted China to buy more U.S. soybeans, beef and aircraft, and that he said he would discuss trade “more than anything else.” AP also said the administration hoped the Board of Trade could help prevent a repeat of the tariff fight that escalated last year after Trump’s tariff increases and China’s response through its control of rare earth minerals. (cnbc.com) CNBC reported that Taiwan, Iran, artificial intelligence, tariffs and rare earths were all expected to be part of the two-day agenda. Those issues have tied trade talks to a wider security negotiation between the two governments, according to the published summit schedules and opening remarks. ### What should readers watch next? Friday’s meetings in Beijing are the next test of whether the leaders turn the tariff discussion into a formal framework. (usnews.com) Reuters reported that senior economic officials, including Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, had already met for three hours in Incheon on Wednesday to prepare proposals for Trump and Xi. (cnbc.com) Any announcement on product lists, tariff reductions or a formal Board of Trade would most likely come after those leader-level sessions conclude. Reuters said it remained unclear on May 13 whether the goods covered by any $30 billion arrangement would be named during the summit or left to later talks. (usnews.com)