Chinese President Xi Jinping warned U.S. President Donald Trump on Thursday that disagreements over Taiwan could send relations between the two countries down a “dangerous path”, as the leaders opened a high-stakes summit in Beijing.

The warning came despite both sides signalling progress in trade discussions during the opening day of the two-day meeting.

The summit, held at Beijing’s Great Hall of the People, marks the first visit by a U.S. president to China since Trump’s 2017 trip and comes at a politically sensitive moment for both countries.

Xi Says Cooperation Benefits Both Countries

During opening remarks attended by media, Xi said stable ties between the world’s two largest economies were important not only for China and the United States but also for global stability.

“When we cooperate, both sides benefit; when we confront each other, both sides suffer,” Xi said.

Trump responded by praising the Chinese leader and describing the meeting as potentially historic.

“You’re a great leader, sometimes people don’t like me saying it, but I say it anyway,” Trump said.

“There are those who say this may be the biggest summit ever,” he added.

Xi also said trade negotiations held between U.S. and Chinese officials in South Korea on Wednesday had produced “overall balanced and positive outcomes”, according to China’s foreign ministry.

The talks were aimed at maintaining the trade truce agreed last October and building mechanisms for future trade and investment cooperation.

Taiwan Emerges As Central Issue

Taiwan quickly emerged as one of the most sensitive topics during the discussions.

According to a Chinese readout of the meeting, Xi told Trump that Taiwan remained the most important issue in U.S.-China relations and warned that mishandling it could lead to conflict and an “extremely dangerous situation”.

Trump did not answer reporters when later asked whether Taiwan had been discussed as he appeared alongside Xi at Beijing’s Temple of Heaven, the historic UNESCO World Heritage site where Chinese emperors once prayed for good harvests.

China claims democratically governed Taiwan as part of its territory, while the United States remains the island’s most important arms supplier and international supporter despite lacking formal diplomatic relations with Taipei.

The issue has become increasingly sensitive following discussions within the Trump administration over a proposed $14 billion arms package for Taiwan.

Trade, Agriculture And AI Also Discussed

Chinese state broadcaster CCTV reported that the leaders agreed to deepen cooperation in trade and agriculture while also exchanging views on the Middle East, Ukraine and the Korean Peninsula.

Trump later attended a state banquet hosted by Xi, with further talks and informal meetings scheduled for Friday.

Joining Trump in Beijing is a delegation of leading American business executives, including Tesla chief Elon Musk and Nvidia CEO Jensen Huang.

Trump has said one of his main goals is persuading China to “open up” further to American businesses.

According to the Chinese readout, Xi told Trump that China’s “door of openness” would continue widening and said U.S. companies remained deeply involved in China’s economic reforms and development.

Power Balance Has Shifted Since 2017

Analysts say the balance of power between Washington and Beijing has changed significantly since Trump’s previous visit to China in 2017, when Beijing announced large-scale purchases of American goods and rolled out an elaborate diplomatic reception.

Ali Wyne, senior adviser for U.S.-China relations at the International Crisis Group, said Trump now appears more willing to acknowledge China’s growing global influence.

Trump also enters the summit under mounting domestic pressure.

Court rulings have restricted parts of his tariff strategy, while the ongoing Iran conflict has increased inflation concerns and weakened his approval ratings ahead of November’s midterm elections.

Although China’s economy has slowed, Xi faces far less immediate political pressure at home.

Iran And Strategic Rivalry Loom Over Talks

Apart from trade and Taiwan, Trump is expected to press Xi to use China’s influence with Iran to help end the ongoing conflict with Washington.

However, analysts remain doubtful Beijing will significantly pressure Tehran given Iran’s strategic importance to China as a regional partner and counterweight to U.S. influence.

U.S. Secretary of State Marco Rubio argued that helping resolve the crisis would also benefit China, especially as disruptions in the Gulf threaten global trade and shipping.

Meanwhile, Beijing continues to strongly oppose U.S. arms sales to Taiwan, which remains one of the most contentious issues in the bilateral relationship.

Xi is also expected to make a reciprocal visit to the United States later this year, which would mark his first trip to America since Trump returned to office in 2025.

(with inputs from Reuters)