Chinese President Xi Jinping is set to lead a significant group of Chinese business executives to Washington for a summit with US President Donald Trump on September 24. This decision is reportedly intended to manifest China’s intent to enhance its investment and commercial relations with the United States, as noted by two sources familiar with the planning process.

Historically, Xi has seldom travelled abroad accompanied by corporate leaders, particularly following a stringent regulatory clampdown in sectors such as technology, education, and real estate, which has led to several private-sector figures falling out of favour. The specific members of the business delegation remain unconfirmed, according to reports. The White House has mentioned that it is not monitoring a Chinese CEO delegation but has not elaborated on this statement.

One insider indicated that this business presence could signify China’s readiness to bolster trade relations and investment opportunities, potentially presenting economic benefits for the Trump administration ahead of the upcoming midterm elections in November.

Challenges Faced by Chinese Firms in the US

Chinese enterprises have increasingly come under scrutiny regarding their activities and investments in the United States. Washington has instituted a 100 per cent tariff on imported electric vehicles from China, restricted drone, router, and robot imports, and mandated the divestiture of TikTok’s US operations. Numerous major Chinese technology firms have also been added to US national security-related blacklists.

In 2015, Xi last took a substantial business contingent to the United States, which featured prominent figures such as Alibaba founder Jack Ma and Tencent founder Pony Ma. During that visit, China secured a USD 38 billion deal for 300 Boeing aircraft, while Xi engaged with leading US technology executives, including Apple CEO Tim Cook and Meta CEO Mark Zuckerberg.

Trump has previously visited China with large groups of American business leaders, aiming to ensure better access to Chinese markets. Notably, during a visit in May of this year, he was accompanied by 18 US executives, including Nvidia CEO Jensen Huang and Tesla CEO Elon Musk.

Summit Expectations Remain Modest

In May, the US and China established formal mechanisms aimed at managing their trade and investment relations. Nevertheless, sources suggest that the Board of Investment is unlikely to yield significant outcomes during the upcoming summit due to a restrictive environment for Chinese investment in the United States. There are limited expectations for groundbreaking agreements, according to insiders.

There remains a divide between Beijing and Washington regarding which goods can be classified as “non-sensitive” under the Board of Trade. Currently, around ten product categories are under consideration, with potential adjustments likely before the summit.

A key focus for the summit will be achieving an agreement on the Board of Trade and obtaining additional export licences for rare earths for US companies. A US official indicated that the administration continues to encourage China to adhere to commitments made in Busan last October, which led to a temporary trade truce and the suspension of certain export controls and tariffs. Concurrently, China is advocating for further tariff reductions, with its commerce ministry in July discussing reciprocal tariff cuts amounting to USD 30 billion.

Moreover, US Trade Representative Jamieson Greer announced on Thursday that the two nations would provide updates on agricultural matters and non-tariff barriers during the summit; however, no specific details were made available.

In early September, US Treasury Secretary Scott Bessent, Greer, and Chinese Vice Premier He Lifeng are expected to convene to explore possible outcomes for the upcoming summit, as reported by multiple sources.

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