As the world watches U.S. President Donald Trump and Chinese leader Xi Jinping's historic summit, analysts suggest it could mark a reset in ties between the world's top two economies.
The two leaders are expected to discuss a slew of thorny issues, including Chinese purchases of American agricultural and industrial goods, tariffs, Taiwan, and rare earths, with the backdrop of the war in Iran.
After nine turbulent years, the summit could mark a "defining test" for the world's G2 power dynamic, said Justin Feng, Asia economist at HSBC, pointing out that the U.S., China, and European Union now account for 60% of global GDP.
The summit builds on Trump and Xi's meeting late last year in South Korea that led to a thaw in the trade war between the two countries, with Trump referring them as G2, sparking hopes of an extended truce. "It makes no sense for the two countries to engage in trade wars or tit for tat," said James Zimmerman, AmCham China chairman.
The Trump administration indicated ahead of the trip that it planned to press for greater Chinese purchases of American soybeans, Boeing aircraft, and other goods, while Beijing made it clear that the Taiwan issue would be front and center on its agenda for the meeting.
