President Trump and Chinese President Xi Jinping sat down for formal trade sessions on May 14 in Beijing, marking the second day of a summit that could reshape the global economic order. The 90-day tariff truce negotiated in Geneva officially takes effect today, lowering the effective U.S. tariff rate on Chinese goods from 145% to 30%.
A heavyweight CEO delegation -- including Elon Musk, Tim Cook, Jensen Huang, Larry Fink, and Boeing's Kelly Ortberg -- joined the talks, underscoring the corporate stakes riding on every line of the communiqué. Markets across Asia rallied overnight as traders priced in progress, with the Hang Seng jumping 2.1% in early trading.
What happened
Day 2 of the Trump-Xi summit opened with a formal plenary session at the Great Hall of the People, with both leaders flanked by trade negotiators and the CEO delegation. The agenda spans tariff rollbacks, Taiwan Strait security protocols, coordinated Iran policy, and the contentious tech export control regime that has throttled chip sales to China since 2023. Boeing's Ortberg is pushing to finalize a 500-aircraft order worth an estimated $75 billion at list prices, which would be the largest single commercial aviation deal in history. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are leading the technical working groups on tariff schedules, while National Security Advisor Mike Waltz is handling the geopolitical dossiers separately.
Why it matters
This summit represents the most consequential U.S.-China diplomatic engagement since the trade war escalated in early 2025. The 90-day truce taking effect today drops the effective tariff rate sharply, but markets need clarity on whether it leads to a permanent framework or just kicks the can down the road. For multinational corporations, the tech export control discussion is existential -- NVIDIA, Apple, and Qualcomm have all warned that extended restrictions could cost them billions in annual revenue. The Taiwan language in any joint statement will be parsed word by word by defense analysts and semiconductor investors alike, given TSMC's dominant position in global chip fabrication.
Market impact
Asian markets surged on optimism, with the Hang Seng up 2.1% and the CSI 300 climbing 1.8% in early Wednesday trading.