Trump and Xi to Discuss AI, Chip Exports and Supply Chains

U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet in Beijing this week with technology issues high on the agenda. The two leaders are expected to address artificial intelligence rivalry, access to advanced chips, supply chain security, electric vehicle trade and rare earth minerals as geopolitical tensions intensify over the war in Iran and the status of Taiwan.

The fate of advanced AI chip sales to China is likely to top the discussions. U.S. export controls have restricted sales of the most powerful chips. In January the administration allowed sales of H200 chips on the condition that the U.S. government receive a 25 percent cut of the revenue but the trade has since stalled due to Chinese government objections.

China has condemned the restrictions as an abuse of export controls and is urging its companies to develop domestic alternatives. Chinese AI labs have adapted models to run on locally produced processors while domestic AI chipmakers are gaining market share.

Officials have also raised concerns about Chinese firms using distillation techniques to replicate capabilities from advanced American models though Beijing has denied any illicit activity.

The two governments are considering establishment of recurring dialogues on AI risks including model misbehavior autonomous weapons and attacks by non-state actors. Such talks would occur even as technological competition between the countries continues to intensify.

American companies and officials have accused Chinese labs of using distillation to train models on outputs from more powerful systems a practice common across the industry.

“We have to keep the frontier chips out of the hands of China.”

Yale economist Stephen Roach told CNBC viewers not to expect a spectacular result from the meeting. The Trump administration has maintained tight controls on the most advanced chips while seeking to preserve advantages in the global AI race.

China has introduced new regulations that penalize foreign companies for discriminatory measures against Chinese suppliers. The rules allow authorities to freeze assets or impose exit bans on individuals who assist in what Beijing calls improper extraterritorial jurisdiction.

U.S. officials raised concerns about these measures in recent talks with their Chinese counterparts. market provided they build factories and hire American workers. Lawmakers from both parties have urged continuation of the restrictions to protect the domestic auto industry.

American manufacturers are exploring licensing agreements for Chinese battery and software technology to advance their own EV programs.

China maintains near-monopoly control over processing of rare earth elements essential for electronics EVs and defense equipment. In April 2025 Beijing restricted exports in response to U.S. tariffs though shipments later recovered after diplomatic agreements.

The U.S. has since launched a $12 billion initiative to stockpile critical materials and expand domestic mining and processing capacity. CoreWeave shares climbed 7 percent on expectations that the company's revenue will double in its upcoming earnings report.

The total backlog for major hyperscalers has now surpassed $2 trillion as demand for AI infrastructure continues without signs of slowing despite power constraints. Neocloud providers are positioned to capture a larger share of the $725 billion AI capital expenditure cycle as large technology companies face capacity limits.

One analysis described the infrastructure opportunity as resilient even in the face of what some have called an AI power wall. The summit occurs against a backdrop of competing priorities in the U.S.-China relationship. Officials on both sides continue to balance cooperation on shared concerns such as AI safety with efforts to protect national technological advantages.