As President Trump prepares to meet Chinese President Xi Jinping, the summit arrives not as a diplomatic breakthrough but as a carefully managed pause in an accelerating strategic competition. FDD Senior Fellow Craig Singleton framed the meeting as a continuation of last fall's tactical trade truce — "stalemate with a stage" — in which both sides are protecting the trade and tariff lane while continuing to apply pressure everywhere else. Expected deliverables remain narrow by design: agricultural purchases, Boeing orders, and a Board of Trade mechanism to separate lower-risk commerce from sensitive technology sectors.

Elaine Dezenski, senior director of FDD's Center on Economic and Financial Power, identified China's dollar dependency as its structural Achilles heel and flagged the fentanyl front as largely unresolved, with roughly 97% of Chinese precursor chemical manufacturers now accepting cryptocurrency, shifting money flows beyond the reach of regulated financial institutions. On Iran, she noted Beijing's dual-track posture: publicly ordering Chinese firms to defy U.S. sanctions on Iranian refineries while quietly directing its largest banks to suspend new loans to those same entities.

RADM (Ret.) Mark Montgomery, senior director of FDD's Center on Cyber and Technology Innovation, identified Taiwan as the summit's highest-risk variable, warning that any restraint on foreign military sales would be deeply damaging given a U.S. arms delivery backlog already exceeding $20 billion. He cautioned equally against any shift in declaratory policy toward opposing rather than merely not supporting Taiwan independence, which Beijing would immediately weaponize in a lawfare campaign against Taipei.

Craig Singleton is a senior fellow and senior director of FDD's China Program. Elaine Dezenski is senior director and head of FDD's Center on Economic and Financial Power. RADM (Ret.) Mark Montgomery is a senior fellow and senior director of FDD's Center on Cyber and Technology Innovation. The call was moderated by Joe Dougherty, FDD's senior director of Communications.

For more, check out: https://www.fdd.org/analysis/2026/05/07/previewing-the-trump-xi-summit/