Trump and Xi Jinping head into Washington summit

President Donald Trump and China's President Xi Jinping are set to meet at the White House on Thursday, despite numerous contentious issues standing in the way. China has failed to comply with the Trump administration's demands to apply pressure on Iran to agree to U.S. terms for ending the ongoing war. The Chinese leader wants to halt arms sales to Taiwan and loosen export restrictions on advanced chips.

The two sides agreed on Wednesday to extend a one-year trade truce set to expire on November 10 for an additional two months, postponing the search for a more permanent resolution. Despite the disagreements, both leaders believe that time is in their favor as they strive to outmaneuver each other in the ongoing global economic and national security competition.

President Trump has lavished attention on the state visit, ensuring the completion of a new helicopter landing pad on the White House's South Lawn before Xi and his wife, Peng Liyuan, arrive on Wednesday evening. The guest list features tech luminaries such as Amazon's Jeff Bezos, Nvidia's Jensen Huang, and Meta's Mark Zuckerberg, all of whom are engaged in discussions about safeguarding artificial intelligence development, a matter of great significance to the leaders.

The two leaders have yet to make significant progress on AI or other difficult issues. Treasury Secretary Scott Bessent stated that the leaders may agree to a new "notification mechanism" for AI incidents affecting national security. However, it is unclear whether they will reach a more comprehensive agreement by January or just extend the current truce further.

Both Trump and Xi have a vested interest in prolonging the trade truce, as their respective parties face challenges in retaining control of Congress during the upcoming midterm elections. Meanwhile, China's economy is grappling with domestic issues while its high-tech exports continue to thrive. The U.S. Supreme Court's overturning of many Trump tariffs in February has led to fluctuating average tariff rates between the two nations.