Iran Conflict May Shift Focus of U.S.-China Summit Agenda

The White House had not formally invited business executives to join the president on a trip to China as of Tuesday, according to one person familiar with the planning. A proposed list of two dozen leaders could be halved. Boeing and Citigroup CEOs are among those expected to make the trip, two separate sources said.

The aircraft manufacturer is expected to finalize its first large order from China in nearly a decade around the time of the summit. Chinese leader Xi has hosted a dozen national leaders this year from countries including the U.K. and South Korea, often accompanied by large business delegations.

A smaller executive contingent would contrast with the president's visit to Saudi Arabia last May, which included more than 30 U.S. business leaders. During a 2017 trip to China, nearly 30 CEOs accompanied the president and signed 37 major deals worth more than $250 billion.

Corporations may not object to a reduced focus on business issues if the summit helps resolve the Iran conflict, which creates a significant geopolitical risk for global operations. An end to the Iran war would be a great relief to global business, according to Hai Zhao, a director of international political studies at the Chinese Academy of Social Sciences.

>"It would be remembered as very much the success" for the Trump-Xi summit. com) Iran and the United States have exchanged fire in the Strait of Hormuz, with each side blaming the other for starting the latest incident. A few days earlier, a Chinese-owned oil tanker was struck, according to Chinese media outlet Caixin.

CNBC was unable to independently confirm that report.

Chinese officials have grown more hesitant to engage with the American business community following U.S. military actions earlier this year, said Michael Hart, president of the American Chamber of Commerce in China. The images of the two leaders meeting could still signal greater acceptance within China of engagement with U.S. businesses.

China's foreign ministry said it supports business expansion and hopes companies can advance bilateral economic relations. The country's commerce ministry did not respond to a request for comment. Both countries have eased recent tensions around U.S. sanctions and technology issues while considering cooperation on artificial intelligence security threats.

Trump is expected to secure agreements on Chinese purchases of U.S. soybeans and Boeing airplanes, according to Scott Kennedy of the Center for Strategic and International Studies. Kennedy also anticipates discussion of plans to create bilateral trade and investment organizations, referred to as boards, to address specific issues.

He said the meeting most likely will solidify the advantages China has gained over the past year.