The agreement emerged during the opening phase of a two-day summit in the Chinese capital that both sides framed as an effort to preserve cooperation between the world’s two largest economies despite disputes over trade, Taiwan and global security.

Xi told Trump that stable ties between China and the United States benefited the international community and warned that confrontation between the two countries would damage both sides.“When we cooperate, both sides benefit; when we confront each other, both sides suffer,” Xi said during opening remarks at the Great Hall of the People.

Trump, whose approval ratings have come under pressure amid the Iran war and rising inflation, described the gathering as potentially “the biggest summit ever” and invited Xi to visit Washington later this year.During a state banquet, Trump praised Xi as “a great leader” and said the two countries would pursue broader cooperation despite ongoing strategic rivalry.

Chinese officials said economic negotiations held in South Korea on Wednesday between US and Chinese trade teams had produced “balanced and positive outcomes,” aimed at preserving a trade truce reached last October that suspended steep tariffs and eased tensions over rare earth exports.

The leaders also discussed expanding cooperation in agriculture, trade and artificial intelligence while exchanging views on conflicts in the Middle East, Ukraine and the Korean Peninsula, according to Chinese state broadcaster CCTV.Taiwan remained a central point of friction.

Xi warned Trump that mishandling the issue could push bilateral relations toward “a dangerous situation,” according to China’s foreign ministry.Taiwan, the democratically governed island claimed by Beijing, continues to receive military support from Washington under longstanding US law despite the absence of formal diplomatic recognition.

Joining Trump in Beijing were senior US business executives including Elon Musk and Jensen Huang, reflecting Washington’s push for greater access to Chinese markets and reduced trade imbalances.China, meanwhile, is seeking relief from US export restrictions on advanced semiconductors and chipmaking equipment.

Analysts said shifting geopolitical conditions have altered the balance of the relationship since Trump’s previous Beijing visit in 2017. While China’s economy has slowed, Beijing faces less immediate domestic political pressure than Washington, where inflation, legal disputes over tariffs and the Iran conflict have complicated Trump’s agenda ahead of midterm elections.

The Iran conflict also featured prominently in discussions, with Trump expected to encourage Beijing to press Tehran toward a diplomatic settlement. However, analysts said China was unlikely to significantly reduce support for Iran, which Beijing views as an important strategic partner and counterweight to US influence.

US Secretary of State Marco Rubio said it was in China’s economic interest to help stabilize the Gulf region, noting that disruptions in shipping and trade would affect Chinese exports and maritime traffic.

India, which holds the BRICS presidency this year, is hosting the two-day meeting involving founding members Brazil, Russia, China and South Africa alongside newer entrants including Iran and the United Arab Emirates.

The summit comes as the war involving Iran and escalating instability around the Strait of Hormuz continue to disrupt shipping lanes and fuel markets, increasing pressure on energy-importing economies across Asia.

Indian foreign ministry spokesperson Randhir Jaiswal said the discussions would focus on “global and regional issues of mutual interest,” while diplomats indicated energy security, trade flows and geopolitical coordination would be central themes.

Iranian Foreign Minister Abbas Araghchi arrived in New Delhi late Wednesday, according to Iran’s embassy, while Russian Foreign Minister Sergey Lavrov held talks with Indian Foreign Minister Subrahmanyam Jaishankar shortly after arriving in the Indian capital.

Jaishankar said discussions with Lavrov covered “trade and investment, energy and connectivity” as well as broader multilateral issues, adding that political coordination among BRICS members had become increasingly important in a “volatile global environment.”The conflict in Iran has heightened concerns in India, which depends heavily on Middle Eastern crude oil and fertilizer imports.

Disruptions to Gulf shipping routes have contributed to volatility in oil and gas prices, complicating New Delhi’s economic outlook.Originally established in 2009 as a coalition of major emerging economies seeking greater influence in institutions traditionally dominated by Western powers, BRICS has expanded rapidly in recent years as member states sought to strengthen political and economic coordination across the Global South.

The bloc now includes Egypt, Ethiopia, Iran, the United Arab Emirates and Indonesia, though officials have not confirmed whether all member states are represented at the meeting.Despite efforts to project unity, internal divisions remain pronounced.

Differences over the Middle East conflict, relations with Western powers and regional rivalries have complicated attempts to present a unified diplomatic position.Indian officials declined to confirm whether the ministers would issue a joint communique at the end of the summit.

Prime Minister Narendra Modi is expected to meet participating foreign ministers ahead of a broader BRICS leaders’ summit scheduled later this year.