US President Donald Trump will travel to China this week for a meeting with President Xi Jinping. The visit from May 13-15 is a key test for the trade truce between the world's two largest economies. Executives from major American companies are expected to join Trump, looking for business opportunities.
This meeting comes after a period of significant trade tension. In April 2025, President Trump imposed sweeping import taxes on many countries. This led to a trade war with China. Both countries imposed tariffs on each other's goods, reaching over 100% in some cases. The tariffs were paused after a meeting between Trump and Xi in October. However, both sides have continued to make threats.
The trade war began when Trump won the 2016 election with a promise to create fairer trade deals for the US. In 2018, he announced tariffs on $250 billion of Chinese imports. This marked the start of the trade war for many experts. Trump also placed tariffs on other trading partners like Mexico and Canada. These measures surprised China. Policy researcher Ning Leng from Georgetown University noted that China likely underestimated Trump's actions. At that time, China heavily relied on trade with America. The US was a major buyer of Chinese manufactured goods. Trump's tariffs put these jobs at risk. This added to existing problems in China, like weak consumer spending and high unemployment.
When Joe Biden became president in 2021, he continued to put pressure on China. His administration did not remove Trump's tariffs. They believed the US needed to limit China's growth, especially in technology. Biden also restricted Chinese companies like Huawei, citing security concerns. TikTok also faced scrutiny. Chinese electric vehicles (EVs) were also largely blocked from the US market by new tariffs.
As economist Tang Heiwai from the University of Hong Kong explained, some argue that Biden was even more protectionist than Trump. Trump returned to office in 2025 and increased tariffs on China to 20%. He accused China of allowing fentanyl into the US. He later set a 34% levy on Chinese goods. These high tariffs caused problems for Chinese businesses and forced US companies to seek other suppliers. China retaliated with its own tariffs, hurting American farmers. However, Trump faced a challenge with China's near-monopoly on rare earth minerals, essential for many high-tech products. Trump used tariffs to force deals, but he could not risk upsetting businesses reliant on Chinese raw materials. This led to a need for negotiation.
A meeting in October led to Beijing suspending export controls. This was seen as a win for Trump. He also claimed China agreed to buy more US agricultural goods. In return, Washington reduced some tariffs on ingredients used for fentanyl. Planned tariff increases were paused. Restrictions on selling advanced semiconductors to China were also lifted, though not for the very latest technology.
Currently, a permanent solution to the trade dispute is still missing. China's strong investment in manufacturing means its businesses must export heavily because domestic spending is weak. As Tang Heiwai stated, China needs the US market because it is so large. However, China is now in a stronger position. Its exports have reached record levels. This is partly due to finding new trading partners as US relations soured. China has also invested heavily in robotics and aims to produce its own advanced chips. This reduces its reliance on Western companies. The Trump administration is expected to focus on these ongoing trade issues during the visit.