President Trump and Chinese leader Xi Jinping will meet in Washington this week seeking to stabilize trade relations, but Treasury Secretary Scott Bessent acknowledged Monday that China hasn’t fully delivered on promises made nearly a year ago. The admission comes as artificial intelligence disputes, shifting tariffs, and Iran-related sanctions threaten to derail what both sides hoped would be a productive second summit of 2026.
Speaking on CNBC’s “Squawk Box,” Bessent said the “great respect” between Trump and Xi helps broader negotiations, then added a pointed caveat: “We had some deliverables that have not been completely fulfilled” from the Busan, South Korea agreement reached last year. He didn’t specify which commitments China failed to meet, but the comment signals American frustration heading into high-stakes talks.
Trade Truce Shows Cracks Despite Diplomatic Gestures
Both nations have exchanged goodwill gestures leading up to the summit, yet accusations and retaliatory trade actions continue between Washington and Beijing. The fragile truce reached in Busan was meant to prevent the kind of tit-for-tat tariff escalation that rattled markets and raised consumer prices during Trump’s first term. American families saw those costs at checkout counters — higher prices on everything from electronics to clothing when tariffs spiked in previous trade wars.
China analysts express concern about the unusual top-down nature of Trump and Xi’s direct diplomacy, with one noting that “a number of inconsistent viewpoints seem to be jostling each other” as Trump dictates “the overarching approach.” That concentration of decision-making in two leaders could mean faster deals — or sudden breakdowns that leave American businesses scrambling.
AI, Tariffs, and Iran Complicate the Picture
Three major friction points loom over this week’s talks. Artificial intelligence has emerged as a new battlefield, with both nations racing to dominate the technology while debating export controls and security concerns. Tariff policies remain in flux, creating uncertainty for American manufacturers and importers who need stable planning horizons. And U.S. sanctions operations related to Iran could force China to choose sides in ways that complicate economic cooperation.
The stakes extend beyond diplomatic optics. American retirement accounts holding Chinese stocks, small businesses dependent on stable supply chains, and consumers facing potential price increases all have skin in this game. Whether Trump can extract concrete commitments from Xi — and whether China actually follows through this time — will determine if this summit produces real results or just more photo opportunities.
Key Points
- Treasury Secretary Scott Bessent says China hasn’t fulfilled trade deliverables from last year’s Busan agreement
- Trump and Xi meet in Washington this week for their second 2026 summit amid continuing trade tensions
- AI disputes, shifting tariffs, and Iran sanctions threaten to complicate efforts at trade stability
https://www.cnbc.com/2026/09/21/trump-xi-china-summit-trade-tariffs.html – September 22, 2026
