Factbox-What will Trump and Xi discuss in Washington next week?

U.S. President Donald Trump and Chinese President Xi Jinping are set to meet in Washington, D.C. next week for their second summit this year, as both leaders aim to maintain stability amid various issues ranging from trade disputes to regional tensions. Xi is arriving in the U.S. for his first visit to the White House in a decade, with China's economy on track to record a $1 trillion trade surplus for the second consecutive year.

Meanwhile, Trump faces low approval ratings and challenges related to the Iran war, high inflation, and potential difficulties in securing re-election.

The summit comes after the expiration of a recent tariff truce, which will soon expire on November 10. U.S. Trade Representative Jamie Zamis said both nations are expected to announce some progress on agriculture and non-tariff barriers and on a potential $30 billion in tariff reductions. China could potentially cut duties on U.S. agricultural imports, which would be a significant win for Trump ahead of the upcoming midterm elections.

Trump hopes to announce trade victories during the meeting, such as securing high-profile deals for Boeing aircraft and U.S. agricultural products. Sources suggest Xi will bring a large business delegation, similar to a 2015 visit where China inked a $38 billion agreement for 300 Boeing aircraft. However, China and the U.S. have been in ongoing negotiations for a larger deal, with some sources claiming it could involve up to 500 Boeing jets and dozens of wide-body planes.

China and the U.S. have been engaged in lengthy discussions regarding critical technology, minerals, and spare parts, as well as potential restrictions on advanced technology sales to China. This has led to growing concerns in Asia, with U.S. allies wary that Trump may compromise support for Taiwan, a democratic island claimed by China. Despite the U.S. not having formal diplomatic relations with Taiwan, it remains a crucial ally and supplier of military assistance.

Furthermore, the meeting will address the ongoing Iran war and China's complex relationship with Tehran, the world's largest buyer of Iranian oil exports. While Beijing has been accused of facilitating a sanctions-evasion scheme, the Chinese foreign ministry has denied these allegations. Nonetheless, U.S. officials remain frustrated, and Secretary of the Treasury Scott Bessent has warned against supporting Iran, while simultaneously seeking to engage China on financial ties with Tehran.

Artificial intelligence (AI) is another area of potential cooperation, given its implications for national security, economic competitiveness, and military capabilities. However, experts predict that cooperation will likely be limited to symbolic agreements due to intense competition between the two nations. The U.S. has also expressed concerns over China's potential dominance in AI and the associated security risks.

Lastly, the summit will touch upon the issue of curbing the flow of fentanyl precursor chemicals from China, given the devastating impact the drug has had on American citizens. The Trump administration previously imposed fentanyl-related tariffs on China, which were later struck down by the U.S. Supreme Court in February. FBI Director Kash Patel has previously warned against these efforts, stating that curbing the flow of fentanyl is a critical concern for the Trump administration.