Trump to follow up Middle East success with high-profile China business delegation

U.S. officials are currently drafting plans for President Donald Trump to visit China later this year, accompanied by a large delegation of top business executives, Nikkei Asia has learned.

The forthcoming trip is expected to mirror Trump’s recent visit to the Middle East in May, during which more than 30 CEOs joined the president on a trip to Saudi Arabia, resulting in over $2 trillion in business deals.

The business leaders who participated in the Saudi Arabia visit included high-profile figures such as Tesla’s Elon Musk, Blackstone’s Stephen Schwarzman, BlackRock’s Larry Fink, OpenAI’s Sam Altman, Nvidia’s Jensen Huang, Palantir Technologies’ Alex Karp, and Amazon’s Andy Jassy.

These preparations follow Trump’s announcement on June 26 that a trade deal with China has been signed, although he did not provide further details.

This development signals a strategic shift in the U.S. approach to China, moving away from escalating threats aimed at forcing immediate concessions toward a more managed negotiation aimed at long-term “de-risking” of economic dependence.

On June 27, a spokesperson for China’s Ministry of Commerce confirmed that Beijing and Washington had reached a “supplementary understanding” concerning China’s exports of rare-earth elements and the U.S.’s export restrictions on China.

The spokesperson stated, “China will, in accordance with the law, review and approve eligible export applications for controlled items,” referring specifically to rare-earth materials. “In turn, the United States will lift a series of restrictive measures it had imposed on China,” likely referring to export controls on semiconductors and artificial intelligence technologies introduced during the Biden administration.

Following a period marked by tit-for-tat tariff increases, with U.S. tariffs peaking above 145%, the two countries agreed to a 90-day pause on most tariffs after a Geneva meeting between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.

However, U.S. Commerce Secretary Howard Lutnick accused Beijing of “slow-playing” the resumption of rare-earth exports, which disrupted supply chains critical to American military contractors, automakers, and aerospace manufacturers.

Advisers to Bessent have been advocating for rolling back some Biden-era export controls in exchange for China’s commitment to ease licensing requirements on rare-earth elements and magnets. The strategy aims for a managed “de-risking” rather than a full decoupling, reducing U.S. dependence on China gradually over five to ten years.

Earlier this month, the State Department began consulting with business leaders experienced in China to seek guidance on the logistics and protocol for Trump’s potential visit, including details such as the tradition of serving and receiving tea.

These developments suggest that Bessent’s more conciliatory views on China are gaining influence within the administration.

Sources reveal a power struggle between Treasury Secretary Bessent, who advocates for a “big, beautiful rebalancing” with China, and Secretary of State Marco Rubio, a prominent China hawk. Tensions escalated after Rubio announced new visa restrictions targeting Chinese students on May 28, shortly after the Geneva talks between Bessent and He Lifeng.

During a June 5 phone call with Trump, Chinese President Xi Jinping emphasized the need to “recalibrate the direction of the giant ship of China-U.S. relations” and “take the helm and set the right course.”

“It is particularly important to steer clear of the various disturbances and disruptions,” Xi added, comments widely interpreted as a reference to Rubio’s visa policies.

In testimony before the Senate Finance Committee on June 12, Bessent said that U.S. and Chinese economic goals are complementary.

“Chinese leaders want their economy to focus on more consumption while U.S. leaders want their economy to focus on more production,” he explained. “Only by working together in good faith can the U.S. and China achieve a big, beautiful rebalancing that will put global trade on a more sustainable path.”

By Tamilla Hasanova