Chinese President Xi Jinping is reportedly preparing to lead a large delegation of business executives to Washington for a summit with former President Donald Trump scheduled for September 24, according to a report from Reuters.
The delegation is intended to accompany Xi on his visit, marking the first time in over a decade that a significant business contingent has traveled with the Chinese leader to the United States. The last major business delegation led by Xi to the U.S. was in 2015. That group included founders and executives from Alibaba Group Holding Ltd (NYSE: BABA), Tencent Holdings Ltd (OTC: TCEHY), and representatives from various Chinese banks and state-owned firms.
During the 2015 visit, China signed a $38 billion agreement for the purchase of 300 Boeing Co. (NYSE: BA) aircraft. The inclusion of business leaders in the upcoming delegation is seen as a signal of China's willingness to support investment and commercial ties with the U.S. This move could also provide the White House with potential economic victories ahead of the midterm elections, a source told Reuters.
Chinese companies have faced increasing scrutiny from Washington, including the imposition of steep tariffs on Chinese electric vehicles and restrictions on the import of drones, routers, and robots. Additionally, the U.S. has forced the divestiture of TikTok and blacklisted major Chinese tech firms over national security concerns.
Trump has previously visited China with large groups of U.S. business leaders, including Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang and Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk, to seek greater access to Chinese markets. His May 2017 visit included 18 American executives.
The upcoming visit by Xi is also expected to potentially lead to new announcements regarding agriculture and the reduction of non-tariff barriers to expand American farm exports to China. U.S. Trade Representative Jamieson Greer stated that while the administration is not seeking a sweeping trade pact, they expect announcements on agriculture-related incentives during the meeting.
