Trump-Xi Beijing summit: markets watch chips, trade, Taiwan

President Donald Trump and President Xi Jinping meet in Beijing for a two-day summit beginning Tuesday. Global investors are monitoring the talks for developments that could affect trade, technology access and regional security.

Market participants will watch for agreements to resume high-level economic talks, partial rollback or suspension of tariffs, and specific changes to U.S. export controls on advanced semiconductors and AI accelerators. Rules affecting Nvidia H200 chips, related processors and testing equipment are among the items under scrutiny.

Officials are expected to discuss restoring military and diplomatic communication channels. Delegates aim to agree on language intended to reduce the risk of accidental clashes in the Taiwan Strait and to lower the chance of miscalculation between forces.

Currency and financial stability are on the agenda. The offshore Chinese yuan recently traded near 6.7740 per U.S. dollar, approaching a three-year high. U.S. officials are likely to press for commitments against competitive currency depreciation while both sides may highlight measures to calm bond and foreign-exchange markets.

Market strategists say a limited de-escalation framework is more likely than a comprehensive trade deal. Kelvin Wong, senior market analyst at OANDA, noted: “Even modest diplomatic improvements could support risk assets and Asian equities.” He added that sustained market gains would require clearer commitments on semiconductor access and long-term trade arrangements.

If the summit produces few concrete deliverables, traders expect any initial rally to fade as attention returns to inflation, oil prices and Federal Reserve policy. A breakdown in talks or sharp rhetoric on tariffs or Taiwan could prompt flows into safe havens such as the U.S. dollar, gold and Treasuries.

The summit takes place amid higher energy prices linked to the Iran conflict and an ongoing strategic rivalry between Washington and Beijing. Officials from both sides are scheduled to hold economic and security-level meetings during the two days in Beijing.