Trump and Xi Redefine Strategic Competition

By Matthew R. Miller, Judy Zhang and Xiaoni Chen, CorpBridge Advisors

The Trump-Xi summit held in Beijing earlier this month, May 14-15 concluded with a noteworthy pivot towards a more pragmatic and less volatile U.S.-China relationship – one with meaningful implications for companies and investors.

While the meeting was largely ceremonial and short on tangible deliverables, it was the first direct engagement between the leaders of the world’s two most consequential economies since  October 2025 in Busan, South Korea. 

Discussions focused squarely on stabilizing relations and arresting the deterioration of bilateral ties. President Xi characterized the paradigm expansively as “constructive strategic stability” (建设性战略稳定), or competition within “manageable limits” and “manageable differences”. The White House said the two countries “should build a constructive relationship of strategic stability on the basis of fairness and reciprocity.” Presidents Trump and Xi agreed to establish a U.S.-China Board of Trade and a U.S.-China Board of Investment to support better commercial activities. 

Risks remain for American and Chinese businesses. Tariffs, industrial subsidies, overcapacity, and market access barriers were not materially addressed. Economic, technological and geopolitical securitization remain concerns for both countries. 

The Trump administration’s turn towards reciprocal strategic stability is unlikely to dampen its use of tariffs, export controls, sanctions, and import blocking actions. The U.S. will continue to rebuild its supply chain for production of critical components. Nor does China appear less enthusiastic about utilizing its expanding regulatory and sanction toolkit to assert national priorities. 

The status of Taiwan remains an ongoing source of tension, while an extension of the one-year framework agreement reached last year in South Korea to suspend export controls on rare earths and related tariff measures has yet to be finalized.  

This briefing note outlines top results from the summit and provides suggested action items.

Key Takeaways

US-China Dialogue Set to Continue

President Xi has accepted President Trump’s invitation for a state visit to Washington DC later this year. The parties appeared amenable to additional meetings in November at the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in Shenzhen, and in December at the G20 Leaders’ Summit in Miami. The two sides also agreed to continue dialogues on trade and the economy, military-to-military relations, and law enforcement.

Establishment of a U.S.-China Board of Trade and the U.S.-China Board of Investment

The U.S.-China Board of Trade (BoT) and the U.S.-China Board of Investment (BoI) resemble earlier U.S.-China dialogue forums, including the Strategic and Economic Dialogue and the Joint Commission on Commerce and Trade. The BoT and BoI appear more transactional, however, and designed to provide “institutionalized management” of bilateral trade and investment issues, according to China’s Ministry of Commerce (MOFCOM).

The mandate, structure, and operations of the boards remain to-be-determined.

• The BoT will allow the governments to manage bilateral trade across non-sensitive goods in non-strategic areas. For the Trump Administration, this includes items the U.S. would not reshore, according to U.S. Treasury Secretary Scott Bessent. China said the two sides will utilize the BoT to discuss reciprocal tariff reductions on $30 billion or more in products to most-favored nation tariff rates or lower.

  
  

• The BoIt will provide a government-to-government forum for discussing investment-related issues. The Board would not displace government review and approval processes in either the U.S. or China.

  
  

China agreed to the following actions, according to the White House Fact Sheet and subsequent China Ministry of Commerce Question & Answer: 

• China approved the purchase of 200 Boeing aircraft for Chinese airlines, with the U.S. providing supply guarantees for engines and components.

• China agreed to purchase at least $17 billion per year of U.S. agricultural products in 2026 (prorated), 2027, and 2028. These agricultural purchases are in addition to China’s purchase commitments of 25 MMT of U.S. soybeans in 2026, 2027, and 2028. 

• China agreed to restore market access for U.S. beef by renewing expired listings of more than 400 U.S. beef facilities and adding new listings. 

• China agreed to resume imports of poultry from U.S. states determined by the USDA to be free of highly pathogenic avian influenza.

• The U.S. committed to address non-tariff barriers and market access issues for some Chinese agricultural products, including longstanding detention measures for Chinese dairy products. The U.S. also committed to designate Shandong as an avian influenza-free zone.

  
  

Companies and investors must remain vigilant about issues that remain unaddressed or unresolved following the summit, including:

• Taiwan: President Xi told President Trump that the Taiwan question is “the most important issue” for China-U.S. stability and could push the relationship to "a very dangerous place." Top concerns focus on U.S. approval for a $14 billion weapons sale to Taiwan, following an $11 billion sale last year. President Trump said in an interview following the summit that U.S. policy had not changed but the arms sale represented “a very good negotiating chip.”

• Tariffs: The U.S. Trade Representative opened 301 investigations that may rebuild tariff schedules based on unfair trade practices related to structural excess capacity and forced labor, following the U.S. Supreme Court decision in February ruling illegal the tariffs President Trump had imposed under the International Emergency Economic Powers Act (IEEPA). The U.S. is expected to maintain pressure on Chinese exports, both directly and by leveraging third-party countries.China, in its MOFCOM statement, indicated a willingness to accept tariff levels that “will not exceed” last year’s agreed upon limits.

• Rare Earths and Extension of Busan Agreement: The governments have not finalized an extension of last year’s agreement, which expires on November 10, 2026. The U.S. stated China will address export controls on rare earths, including the sale of rare earth production and processing equipment and technologies. China stated that the extension of  last year’s agreement, including tariff and export control measures is “of great significance” to bilateral stability. 

• Iran and Other Geopolitical Issues: Both governments in their statements said the Strait of Hormuz should be opened but disagreed on specifics. China remains critical of U.S. action, with the Foreign Ministry on May 15 stating, “There is no point in continuing this conflict which should not have happened in the first place.” Cuba may be a fresh flashpoint, as the U.S. Justice Department indicted 94-year-old former Cuban president Raúl Castro on conspiracy and murder charges, drawing immediate rebuke from Beijing.

For U.S. Companies Operating in China

The post-summit environment may provide a period of stability for foreign businesses operating in China, particularly in non-sensitive sectors. However, the broader trajectory of strategic competition remains unchanged.

We recommend the following actions:

• Reassess communications strategies through the lens of “constructive strategic stability.” Companies should avoid framing China operations solely through geopolitical risk narratives, at the same time avoid messaging that may be perceived as overly aligned with either government. 

• Rebuild dialogue with local regulators, officials, trade associations, and policy stakeholders, particularly in regions where they maintain major operations or investment plans, as both governments move to stabilize commercial relations. 

• While “China-for-China” structures remain important, companies in strategic sectors must recognize that localization may not insulate them from future regulatory or geopolitical pressures. 

• Plan for long-term fragmentation, particularly companies operating in technology and strategically sensitive sectors, and assume continued regulatory scrutiny, export-control expansion, and investment restrictions despite the improvement in overall diplomatic tone. 

• Communications strategies should remain measured and locally informed, even as consumer-facing brands may have greater room for brand building and benefit from an improved public sentiment in China. 

• Prepare for renewed policy volatility despite near-term stabilization. Tariffs, sanctions, export controls, supply chain restrictions, and politically driven investigations remain core tools for both governments. Companies should continue scenario planning and communications preparedness for potential escalation.

  
  

For Chinese Companies Operating in the United States

The summit creates select opportunities for Chinese companies in the U.S. to re-engage investors, business stakeholders, and local communities, particularly firms operating in commercial and non-sensitive areas. The post-summit environment also provides a window to explore capital markets and direct investment opportunities. Caution is critical. Companies must remain mindful of the scrutiny paid to China-related business, particularly in key sectors. Chinese companies should focus not only on commercial positioning, but also on long-term trust-building, local citizenship, and community resilience.

We recommend the following actions:

• Increase engagement with state and local stakeholders. Important themes should include job creation, particularly for highly-skilled positions, and increased investment in local communities, which raises standards of living and local tax revenue. Although Chinese direct investment will remain a contentious subject in Washington D.C., many state and local governments continue to prioritize economic development.

• Position business narratives around economic value and community investment, which resonate effectively with local constituencies. Develop and socialize content about how businesses serve clients.

• Prepare for heightened media, regulatory and public scrutiny, regardless of bilateral developments. Companies must update \narratives and response plans based on business operations and supply chains, including ownership structure, data governance, cybersecurity, and government relationships.

• Strengthen third-party relationships and external advocacy. Proactively engage with sector and industry associations, commercial partners, suppliers, customers, academic collaborators, and community stakeholders. These organizations  play an increasingly important role in shaping perception of Chinese business. Companies should invest in broader stakeholder ecosystems rather than relying entirely on direct corporate messaging.

• For companies undertaking public market transactions or planning to list on U.S. exchanges, an early understanding of listing requirements is critical – listing rules for foreign and Chinese companies continue to evolve.

  
  

Recommended Actions for All Companies

• Track follow-up releases from China’s Ministry of Commerce, Ministry of Foreign Affairs, and other relevant Chinese government websites, alongside the White House, Department of Commerce, Department of Treasury, and U.S. Trade Representative.

• Conduct policy-risk audits for tariff and non-tariff exposure and assess vulnerabilities, particularly in relation to critical minerals.

• Corporate Affairs and Government Relations teams should continue to focus on aligning business narratives with bilateral cooperation priorities such as climate action, green supply chains, and trade facilitation while remaining alert to ongoing structural tensions in technology, security, and data governance. 

• Prepare contingency scenarios in case of renewed escalation.

For more information, contact:

Bob Christie: bob@corpbridgeadvisors.com

Matthew Miller: matthew@corpbridgeadvisors.com

Judy Zhang:  judy@corpbridgeadvisors.com