Trump and Xi Hold First Washington Summit in Over a Decade as US and Iran Explore Phased Hormuz Deal

Chinese President Xi Jinping visited the White House on September 24 for his first trip to Washington in more than a decade, meeting with President Trump for wide-ranging talks on trade, artificial intelligence, Taiwan and the ongoing conflict with Iran. The two leaders extended the existing US-China trade truce by roughly two months to January 10 and Xi announced that China would invite 100,000 American youths to visit China over the next five years. Xi called for healthy competition between the two countries on AI, urged that the technology remain under human control, and said China and the US have "even more reasons to cooperate" on AI despite their rivalry. Trump and Xi also agreed to support each other in hosting the 2026 APEC leaders meeting and G20 summit. Chinese delegations announced a new trade arrangement after talks, with Xi calling it "good news," though few concrete details emerged publicly.

Taiwan and nuclear concerns surfaced sharply at the summit. Xi told Trump that China's position on safeguarding its territorial integrity is "crystal clear" and urged the US to adhere to the correct position of opposing Taiwan independence. Separately, the Wall Street Journal reported that the Trump administration has been quietly pressing China in confidential talks over suspected low-yield nuclear tests and Beijing's rapidly expanding arsenal, with discussions held on the sidelines of multilateral meetings in Geneva, New York and Casablanca. China denies violating the 1996 nuclear test ban treaty. Washington is seeking stronger verification measures, greater transparency and more advance notice of ballistic missile tests, with further talks expected next month.

On Iran, Reuters reported that US and Iranian negotiators are discussing a phased agreement that could begin with Iran reopening the Strait of Hormuz to navigation in exchange for Washington lifting its economic blockade and potentially unlocking frozen Iranian assets. Iran is willing to defer its demand for transit fees through the strait but is not prepared to give up administrative control, a position Gulf states have rejected. The central obstacle is sequencing: neither side wants to surrender its main source of leverage first. Tehran later denied working on any such phased deal, insisting it is sticking by its existing conditions. Xi publicly urged the US and Iran to return to negotiation as soon as possible and expressed hope the two sides would reach agreement on the nuclear issue. The Hormuz news helped US stocks pare earlier losses.

At the United Nations General Assembly in New York, dozens of delegates walked out as Israeli Prime Minister Benjamin Netanyahu took the podium, with Netanyahu calling those who left "moral cowards." Netanyahu referenced Israel's attack on Hezbollah, said Israel has no greater partner than Trump, and clashed with New York Mayor Zohran Mamdani, who had campaigned on a promise to have Netanyahu arrested under an International Criminal Court warrant. Money markets priced in three additional Federal Reserve rate hikes over the next year as investors demanded higher returns on long-term bonds.