Xi’s US Trip May Not Be Business As Usual. Political Symbolism May Dwarf Trade Offs

President Xi Jinping’s upcoming trip to the US later this month may not be business as usual.

A large business delegation is likely to accompany the Chinese president this time, in a major departure from his usual trips, news agency Reuters reported.

The Xi trip assumes more significance than the diplomatic and geopolitical nuances usually attached to a visit by a high-profile Chinese leader. Trade between the two countries could be more in focus than the geopolitical nuances and diplomatic undercurrents that usually play out.

The Xi trip also assumes significance considering that the US is generally wary of Chinese investment. Beijing’s own love-hate relationship with private enterprise would also undergo a transformation, given that Xi had recently championed strict steps against private enterprises. In 2002, Xi had ordered regulatory clampdown on China’s technology, education and property sectors. The Chinese president has continued that tough stance since then.

The Xi-backed clampdown came after many private enterprises fell out of favor with the Chinese authorities.

“The White House is not tracking a Chinese CEO delegation,” an official ‌was quoted as saying by Reuters on Xi’s trip. The news outlet reported that the aide did not explain what “tracking” meant, though it is probably a reference to the composition of the entourage for the September 24 summit. The Reuters report did not provide details on business delegation that is slated to accompany the top Chinese leader.

But the step is significant as it is also interpreted as a signal being sent out by Xi that China is more than willing to back investment and commercial ties with the US. In other words, Xi would not be averse to offering some potential economic gains for the beleaguered Trump administration, which is facing a tough midterm election in November, according to the report.

The Trump administration’s stance on Chinese firms, which have been squeezed with increasing scrutiny over their US investments and business operations in recent years, would also be keenly watched by industry bodies and policy wonks.

The US had imposed a 100% tariff on imported Chinese EVs, banned foreign drone, router and robot imports, and forced the divestiture of TikTok’s US operations. The Trump administration also placed key Chinese tech firms on the Entity List, a euphemism for firms which the US considers as a threat to national security. Many have found a place on a Pentagon blacklist.

This is not the first time though that Xi is bringing an industry delegation with him, despite his reported aversion to mix business with politics. In his 2015 trip, Xi was accompanied by Alibaba founder Jack Ma, Tencent founder Pony ⁠Ma, along with top executives from Chinese banks and state-owned firms.

China and the US signed a $38 billion pact for 300 Boeing aircraft during that Xi trip.

The Chinese leader also met with top US technology executives including Apple’s Tim Cook, Meta’s Mark Zuckerberg and Amazon founder Jeff Bezos then.

Trump is exactly the opposite of Xi, as the US president has had no qualms in mixing business with politics. In fact, his major policy stance is to use trade as a tool for geopolitical bargaining, as is evident from his controversial tariff regime.

Trump has travelled to China with large business delegations on visits in 2017 and earlier this year in May. His slated agenda is to seek greater access to Chinese markets.

Nvidia CEO Jensen Huang and Elon Musk were among the top 18 US executives who accompanied Trump to China.

Scott Kennedy, a Chinese business expert at the ​Center ​for Strategic and International Studies, believes that by tagging along a business delegation, the Chinese government is intentionally sending out signals to the US administration, in contrast to the American executives who accompanied Trump. He described the US executives who accompanied Trump as “more wallflowers than serious participants.”

The US Treasury, the Office of the U.S. Trade Representative and the State Department did not offer comment.

The US and China had announced formal mechanisms to manage trade and investment ties in May. How this is likely to play out considering that the US administration is wary of Chinese investment, especially from a security point of view, would be keenly watched. No major outcomes are expected from the Xi trip, according to the report.

Beijing and Washington have not been able to reach a consensus on which products should qualify ‌as “non-sensitive” under the Board of Trade. The discussions are revolving around nearly 10 categories of “non-sensitive” goods.

The US has prioritized reaching an agreement on the ​Board of Trade, apart from securing more rare earth export licenses for US companies. How far Xi would budge is a wild guess. Reciprocal tariff reductions covering $30 billion worth of products could be pushed by the Chinese side.

US Trade Representative Jamieson Greer has the countries will ‌make “some announcements on agriculture and non-tariff barriers.” US Treasury Secretary Scott Bessent, Greer and Chinese Vice Premier He Lifeng will reportedly meet ahead of the summit to chalk out “summit deliverables.”