Trump Meets Xi in Washington as China Defies US Pressure on AI and Yuan Hits 4-Year High
Trump and Xi hold high-stakes talks in Washington with trade, AI, and currency on the agenda — but both sides expect few concrete results.
US President Donald Trump and Chinese President Xi Jinping are meeting in Washington next week for talks that could shape who leads the world in artificial intelligence, even as both sides play down expectations of any major breakthrough [243870][245091].
Ahead of the summit, China rejected US calls to slow its artificial intelligence development, saying it will keep investing in AI and set its own rules in a bid to become a global leader in the technology [245030]. The two countries remain far apart on what they fear most about AI: Washington focuses on long-term threats such as AI escaping human control or being used in cyberattacks and military systems, while Beijing worries about economic stability, social order, and control over information [243941].
The meeting comes as China's yuan reached its strongest level in four years on Thursday, with investors watching the talks closely for signs of progress on trade [244422]. China also said it will expand the use of its currency in global clearing systems, the process banks use to settle payments between countries, to make the yuan easier to use in international trade [244422].
Trump signed a new sanctions bill into law on Friday targeting major buyers of Russian energy, including China and India, just days before Xi's state visit [245078]. The law, named the "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026," authorizes and expands statutory sanctions, tariffs, and prohibitions on Russia, and extends existing sanctions on Iran [245078].
The United States may also postpone announcing major arms sales to Taiwan until after November's Apec summit in Shenzhen, with sources pointing to Xi's state visit as a key reason for the delay [245072]. Apec, the Asia-Pacific Economic Cooperation forum, brings together Pacific Rim economies for annual talks on trade and economic policy [245072].
The summit is expected to cover trade, tariffs, technology, and other economic issues [244422]. But both sides have reasons to keep expectations low, and the concrete results are likely to be limited despite the enormous consequences for the world [245091].