U.S. and Chinese leaders confront mounting pressure over Middle East instability, Taiwan security, trade expansion, artificial intelligence cooperation, and energy market disruption
President Donald Trump and Chinese leader Xi Jinping are set to meet for the second day of their summit on May 15, with the conflicts surrounding Iran and Taiwan expected to dominate discussions.
The war in Iran, now nearing its 12th week, has severely disrupted international energy markets. Global oil prices have climbed above $100 per barrel, while the costs of capital and consumer goods have risen sharply.
In an interview with Fox News host Sean Hannity on May 14, Trump said the Chinese regime has no intention of halting its purchases of Iranian energy.
“[Xi] said he's not going to give military equipment [to Iran]. That's a big statement,” Trump told Hannity. “But at the same time, he said they buy a lot of their oil there, and they'd like to keep doing that.”
The Trump administration has sought to persuade Beijing that helping stabilize tensions in the Middle East aligns with China’s strategic interests.
China remains the largest buyer of Iranian crude oil. According to the U.S. Energy Information Administration, approximately 10 percent of China’s oil imports in 2024 came from Iran, while nearly 90 percent of Tehran’s crude exports were directed to China.
Reports indicate that before the conflict began, nearly one-fifth of Beijing’s total oil imports originated from Iran, averaging as much as 1.5 million barrels per day.
Trump also said Chinese officials objected to Iran’s recently introduced toll policy.
Earlier this month, Tehran announced a 10 percent toll on all vessels passing through the Strait of Hormuz and established a new office to oversee the safe transit of commercial ships through the region.
“[Xi] didn't like the fact that they're charging tolls,” Trump said.
The Strait of Hormuz, located between Iran and the Arabian Peninsula, is one of the world’s most critical maritime chokepoints for oil, liquefied natural gas, petrochemicals, fertilizer, and other commodities.
Despite differences over the conflict, a White House readout stated that “both countries agreed that Iran can never have a nuclear weapon.”
Treasury Secretary Scott Bessent said China is expected to use its influence to help reopen the Strait of Hormuz.
“It’s very much in their interest to get the strait reopened,” Bessent told CNBC’s “Squawk Box” on May 14. “I think they will be working behind the scenes to the extent anyone has any say over the Iranian leadership.
“China has a much bigger interest in reopening the strait than the U.S. does.”
Taiwan Emerges as Key Flashpoint
At the opening of the summit, Xi warned Trump that disagreements over Taiwan could damage broader trade negotiations.
“The U.S. side must exercise extra caution in handling the Taiwan question,” a statement released by China’s Ministry of Foreign Affairs said.
“If it is handled properly, the bilateral relationship will enjoy overall stability. Otherwise, the two countries will have clashes and even conflicts, putting the entire relationship in great jeopardy.”
Secretary of State Marco Rubio confirmed that Xi raised the Taiwan issue, although arms sales were not a primary focus during Thursday’s discussions.
“U.S. policy on the issue of Taiwan is unchanged as of today, and as of the meeting that we had here today,” Rubio told NBC News.
Rubio added that whenever Taiwan is discussed, the United States reiterates that any attempt to change the island’s status through military force “would be problematic.” He emphasized that Washington’s approach has remained consistent across multiple administrations.
Several U.S. senators also urged Trump to make clear to Beijing that American support for Taiwan “is not up for negotiation.”
“Just as Taiwan’s leaders demonstrated unity in support of their people’s defense, so too must we move ahead with pending U.S. arms sales vital to our own national interests,” lawmakers wrote in a May 8 letter.
“For the sake of all Americans, the United States must continue to help Taiwan defend itself.”
Under the “One China” policy, the United States acknowledges Beijing’s position that Taiwan is part of Chinese territory, but Washington has never formally recognized China’s claim of sovereignty over the self-governing democratic island.
Trade, Boeing Orders, and AI Cooperation
Despite prolonged trade tensions over the past year, Trump and Xi have attempted to strengthen bilateral relations during the summit.
Trump said Xi agreed to purchase Boeing aircraft as part of the discussions.
“One thing he agreed to today, he’s going to order 200 jets. That’s a big thing—Boeings,” Trump said. “That's a lot of jobs—that's a lot. Boeing wanted 150; he got 200.”
Trump did not specify which aircraft models China intends to purchase from Boeing.
Industry analysts had anticipated that the summit could produce positive developments for the aerospace manufacturer.
During an April 22 earnings call, Boeing CEO Kelly Ortberg said the Trump–Xi meeting represented a “meaningful opportunity” for the company.
“I’m not going to give you the number of airplanes, but it’s a big number,” Ortberg said during the conference call after joining Trump and senior U.S. executives on the trip.
Bessent also revealed that Washington is exploring the creation of an investment board with China to strengthen economic ties between the two nations.
According to Bessent, the initiative would address national security concerns while identifying “nonstrategic” and “nonsensitive” sectors where Chinese investment in the United States could be permitted.
“There are plenty of things that the Chinese could invest in in the U.S.,” Bessent said. “And we’re trying to push the same thing in the U.S. President Trump today told Xi Jinping that he wants to open up China. And China should open up.”
Artificial intelligence is also expected to become a major focus of future bilateral cooperation.
Bessent said the United States remains the global leader in AI and confirmed that both nations will begin formal discussions aimed at establishing a framework for AI best practices and preventing advanced systems from falling into the hands of nonstate actors.
“The reason we are able to have wholesome discussions with the Chinese on AI is because we are in the lead,” Bessent said. “I do not think we would be having the same discussions if they were this far ahead of us.”
