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Trump and Xi Seek Common Ground as Trade, Taiwan and AI Dominate High-Stakes Washington Talks

President Donald Trump opened Chinese President Xi Jinping’s state visit to the United States by highlighting what he called a “truly great friendship” — a carefully calibrated message of warmth as the two leaders prepared to confront some of the most sensitive issues in the world’s most consequential bilateral relationship.

A Diplomatic Opening With Strategic Undercurrents

Speaking before formal talks at the White House, Xi said he was “ready to work with you to steer the giant ship of China-US relationship on a steady course toward the future,” urging both sides to avoid “conflict and confrontation.”

He framed the relationship between the world’s two largest economies as one that carries global consequences, arguing that the United States and China “shoulder a historic responsibility of advancing human development and progress.” His message was clear: the relationship must be managed with discipline, not volatility.

“We can certainly find the right path for two great countries to get along on this planet we both call home,” Xi said, adding that “through candid, in-depth, and continued dialogue, our two countries can understand each other better, seek common ground, while shelving differences and build up mutual trust.”

Trump, for his part, invoked the long arc of the relationship, saying that since his first election in 2016, he and Xi had “forged a friendship, a truly great friendship, actually, built on mutual respect and the vital interests of our people.” He also referenced cooperation during World War II, underscoring the historical dimension of the encounter.

The Real Agenda: Trade, Security And Technology

Behind the diplomatic language, the two sides were preparing for difficult negotiations. Trump said the discussions would focus on foreign affairs, trade, financial cooperation, security and artificial intelligence, which both governments have identified as a major strategic issue.

Washington and Beijing have spent months trying to manage a relationship defined by rivalry as much as interdependence. Trump said the United States and China were working toward “more balanced” trade relations, a signal that tariff pressure, market access and industrial competition remain central to the talks.

Xi, meanwhile, said he hoped “Chinese companies are treated fairly here in the United States,” while welcoming U.S. firms in China. “Competition should be a healthy one and should be kept within bounds,” he said, a line that reflects Beijing’s effort to present competition as manageable rather than existential.

Iran, Taiwan And The Limits Of Cooperation

The talks come against a backdrop of tensions that extend far beyond trade. China has resisted Trump administration pressure to use its economic leverage over Iran to help end the war there, despite its own dependence on Gulf energy supplies. Beijing has condemned the U.S. and Israeli military campaign, and Xi has previously warned that the conflict reflected a return to what he described as “the law of the jungle.”

Taiwan is likely to remain one of the most sensitive flashpoints. Xi is expected to press Trump once again to permanently halt U.S. arms sales to the island, which Beijing claims as part of its territory. Trump, however, has previously described arms sales to Taiwan as a “very good negotiating chip” — a blunt reminder that the issue remains embedded in broader geopolitical bargaining.

Trade Truce Buys Time, Not Certainty

On trade, China is seeking relief from U.S. export controls on advanced semiconductors and other cutting-edge technologies. The two countries agreed on Wednesday to extend by two months a one-year trade truce that was due to expire on November 10, giving both sides more time to pursue a more durable agreement.

That extension may reduce immediate market anxiety, but it does little to resolve the structural tensions at the heart of the relationship: industrial policy, technology controls, strategic competition and mutual suspicion.

“It should be a race of catching up with one another, not a wrestle in which one either wins or loses,” Xi said, offering a message of managed rivalry rather than open confrontation.

Artificial Intelligence Emerges As A Shared Concern

Artificial intelligence has emerged as one of the rare areas where both governments appear to see the need for guardrails. Xi said the two countries have a responsibility to ensure that AI remains under human control. “We have both the capability and responsibility to develop and manage AI for good and ensure that a development of AI is always under human control and serves the well being of the people,” he said.

Trump also highlighted the issue in a social media post earlier in the day, saying artificial intelligence would be high on the agenda amid rising global concern about its potential risks. “I want to leave it exactly where it is,” Trump wrote. “That is China’s position also.”

Earlier this week, finance ministers from both countries met to discuss a proposed “notification mechanism” for AI incidents, a modest but notable sign that Washington and Beijing are at least exploring ways to reduce the risk of technological escalation.

Soft Power Signals: Students And Pandas

As the opening remarks concluded, Xi announced that China would invite 100,000 American youth to study and exchange in the country over the next five years. He also said China would send two pandas to the Atlanta zoo, calling them an “envoy of friendship.”

The gesture was symbolic, but symbolism matters in diplomacy — especially when the substance of the relationship remains fraught. In the end, the visit underscored a familiar reality: Washington and Beijing may speak in the language of cooperation, but they are still negotiating the terms of strategic competition.

LVMH Revenue Rises, But China Weakness Continues To Weigh On Luxury Giant

A Softer Quarter Exposes The Limits Of Luxury’s Recovery

LVMH, the world’s largest luxury group and parent of Louis Vuitton, Dior, Celine and Hennessy, reported revenue of €18.5 billion in the three months to the end of September, underscoring both the scale of its business and the pressure building across parts of the luxury market.

The company’s revenue rose 1.2% year on year in the third quarter, following a 0.1% increase in the second quarter and a 5.9% decline in the first. The trajectory points to stabilization, but not yet to a convincing rebound.

Organic Growth Misses Expectations

Organic sales growth, which strips out currency effects and portfolio changes, slowed to 1% in the third quarter from 3% in the previous quarter. That result fell short of market expectations and reinforced concerns that the luxury cycle remains uneven.

For the first nine months of the year, LVMH generated sales of €57.1 billion, with organic growth of 2%.

In its statement, the company highlighted the breadth of its portfolio, saying that diversification continues to provide resilience in an uncertain geopolitical and economic environment. That remains one of LVMH’s defining strengths: when one category weakens, another can help offset the downturn.

China Remains The Key Pressure Point

LVMH said sales performed well in the United States, Europe and Japan, but conditions in China remained less favorable. That matters because the country has long been one of the most important growth engines for global luxury brands.

The fashion and leather goods division, LVMH’s most closely watched unit, saw organic sales fall 5% as weaker demand in China weighed on performance. Deutsche Bank said the decline was steeper than the roughly 2% drop expected by analysts.

The segment had delivered its first organic sales gain in two years in the previous quarter, making the latest retreat a notable setback.

Brand Equity Faces A Test In China

The quarter also highlighted the reputational risks facing global brands in China. Louis Vuitton drew criticism after suing local tea company Molly Tea over logo copying. Although the company won the case, the dispute sparked social media backlash and boycott calls, adding another layer of pressure to an already fragile environment.

For a company built on scarcity, aspiration and brand discipline, perception is an asset as valuable as inventory. In a market as digitally connected as China, that asset can shift quickly.

Mixed Performance Across The Portfolio

Not every division weakened. LVMH’s selective retailing business, which includes Sephora, posted an 8% organic sales increase. Watches and jewellery, along with wines and spirits, both recorded 6% organic gains.

That broad mix is precisely what has historically given LVMH an advantage over rivals: it can absorb softness in one category without relying on a single growth driver.

Analysts See A Longer Recovery Ahead

Deutsche Bank analysts said the results could lead to further cuts in earnings forecasts for the second half of 2026 and 2027. They added that it is difficult to see what could improve investor sentiment in the near term.

Still, the bank framed the weakness as cyclical rather than structural. In its view, recovery is taking longer because Chinese demand remains subdued, but the problem does not appear to reflect a permanent deterioration in the brand franchise. Analysts said ongoing brand initiatives are beginning to show results, though improvements are likely to remain gradual.

Investor Pressure Continues To Mount

LVMH’s share price has fallen nearly 40% since the start of the year. In September, L’Oréal overtook the group as France’s most valuable listed company, a symbolic shift that captures how sharply sentiment has changed.

Shares in LVMH were down more than 1.6% in Paris around 10 a.m. CEST following the release.

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