Xi labels US visit a 'milestone' as diplomatic ties enter 'constructive and strategic' phase
Beijing and Washington agree to keep the Strait of Hormuz open, while oil prices rise on reports of a crude oil purchase deal, amid broader tensions over trade and artificial intelligence.
Chinese President Xi Jinping has formally characterised the bilateral relationship with the United States as "constructive and strategic," describing US President Donald Trump’s recent visit to Beijing as a "milestone" in diplomatic engagement. The comments were delivered as Trump concluded his two-day summit, marking the first visit by a US president to China since 2017.
During the final stages of the meeting, Xi presented Trump with roses, a ceremonial gesture underscoring the diplomatic tone of the encounter. The summit, which began on 14 May 2026 with a delegation of major technology executives, concluded on Friday with Xi’s public endorsement of the evolving political framework between the two nations.
The diplomatic engagement occurred against a backdrop of significant geopolitical friction, including ongoing tensions regarding trade policies, artificial intelligence regulation, and the conflict in Iran. Despite the high-profile nature of the summit, reports indicate that the trip yielded limited substantive diplomatic gains, with outcomes largely focused on stabilising specific economic and energy corridors rather than resolving broader strategic disputes.
A key policy outcome confirmed by the White House was an agreement that the Strait of Hormuz must remain open to support the free flow of energy. This consensus aims to stabilise global markets amid regional instability, with analysts noting that any supply shock from the strait could have significant economic implications for both nations and their allies.
Market reactions to the summit were mixed but generally positive in the short term. US stock markets rose as the summit began, with the Dow Jones Industrial Average gaining 0.8% and the Nasdaq Composite climbing 0.2%. Nvidia shares surged more than 2% following the US approval of certain AI chip exports, reflecting investor interest in the technology sector’s role in the bilateral relationship.
Oil prices increased on Friday following reports that China has agreed to purchase crude oil from the United States. Trump attributed the agreement to recent negotiations with Xi, a development that contributed to rising energy costs and highlighted the continued interdependence of the two economies despite political tensions.
The visit also took place shortly after confirmation that King Charles’s state visit to the US would proceed following a shooting incident, adding another layer of international diplomatic activity to the period. As Trump departed Beijing, the focus shifts to how the "constructive and strategic" framework will be implemented in subsequent policy discussions.
