Trump readies for Beijing summit with Xi as AI chip sales, farm goods top agenda

• China may commit to large-scale purchases of U.S. agricultural products and Boeing aircraft, similar to previous trade deals, though experts note China did not fulfill commitments from the 'phase one deal'
• Advanced AI chip sales remain a major sticking point, with China seeking access to technology beyond Nvidia's H200 chips while the U.S. maintains export restrictions due to national security concerns
• Beijing has shown reluctance to import even approved H200 chips, preferring to support domestic AI chipmakers, and is also interested in increasing Chinese investment in the U.S. similar to deals reached with Japan and South Korea

Summary

President Trump is scheduled to meet with Chinese President Xi Jinping in Beijing on May 14-15 for high-stakes discussions on trade and technology issues between the world's two largest economies.

Key Agenda Items:

The summit will focus primarily on two major trade components:

• Chinese purchases of American farm goods (particularly soybeans) and jetliners (Boeing aircraft)
• Export restrictions on advanced AI chips, specifically Nvidia's H200 and more advanced semiconductors

Expert Analysis:

Derek Scissors from the American Enterprise Institute expects Trump to announce significant Chinese purchase commitments for U.S. goods, though he noted China failed to fully honor similar commitments in the "phase one deal." The proposed arrangement would involve China making large-scale purchases of American agricultural products and aircraft in exchange for U.S. approval to sell more advanced AI chips beyond the H200 model.

Complicating Factors:

• AI Chip Standoff: While Trump has conditionally allowed H200 chip sales to China, Beijing has been reluctant to import them, preferring to support domestic chipmakers instead
• Energy Trade: A deal involving U.S. energy purchases is considered unlikely due to political sensitivities from the ongoing Iran war
• Investment Interest: China is interested in increasing investment in the U.S., similar to recent deals with Japan and South Korea, though U.S. receptiveness remains uncertain

Kyle Chan from The Brookings Institution questioned whether Trump views AI chip sales as a technology or trade issue, which could significantly impact negotiations. China has indicated willingness to "expand cooperation and manage differences" while seeking more stability in bilateral relations.