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.

The commitment came during Takaichi’s visit to Hanoi, where the two leaders discussed expanding the Comprehensive Strategic Partnership established in 2023, covering sectors including energy, critical minerals, artificial intelligence, semiconductors and space cooperation.

“The two sides identified economic security as a new priority area for bilateral cooperation,” Takaichi told reporters after the meeting.“With regard to critical minerals, both sides agreed to strengthen close coordination to ensure stable supplies and reinforce supply chains,” she said.

The talks come as Japanese investment flows into Vietnam weakened sharply despite stronger trade ties. New Japanese investment in Vietnam fell about 75% year-on-year to $233 million in the first quarter of 2026, while bilateral trade rose 12.3% to $13.7 billion during the same period, according to Vietnamese government and customs data.

Japan remains one of Vietnam’s largest foreign investors, with major Japanese manufacturers operating extensive production bases in the country across electronics, automotive and industrial sectors.As part of the visit, both governments signed six agreements covering infrastructure development, climate action, agriculture, digital transformation, technology cooperation and space development, reinforcing broader strategic cooperation beyond trade.

Vietnam has also been seeking support from Japan and other partners to stabilize oil supplies as conflict in the Middle East pushes up crude prices and disrupts shipping routes.Under Japan’s $10 billion Power Asia Initiative, designed to strengthen energy self-reliance across Asia, Tokyo will help arrange crude oil supplies for Vietnam’s Nghi Son Refinery and Petrochemical Complex, one of the country’s most important energy facilities, Prime Minister Hung said.

Takaichi is also scheduled to meet To Lam and senior Communist Party leadership later on Saturday and deliver a keynote address at Vietnam National University.Her speech is expected to mark a decade since former Prime Minister Shinzo Abe introduced Japan’s “Free and Open Indo-Pacific” strategy, a regional framework aimed at strengthening rules-based order, maritime security and economic cooperation across Asia.

Vietnam has publicly supported Japan’s regional initiatives, including the Free and Open Indo-Pacific Vision, aligning them with ASEAN’s broader Indo-Pacific outlook and emphasizing international law, regional stability and balanced strategic autonomy.Hung said Vietnam viewed the framework as contributing positively to “peace, stability, cooperation and development in the region and beyond.”

The visit reflects Tokyo’s broader effort to deepen strategic partnerships across Southeast Asia as competition over technology, trade routes, mineral access and energy security intensifies across the Indo-Pacific.

The Philippines becomes the 13th member of Pax Silica, a programme designed to safeguard the full spectrum of the technology supply chain, including critical minerals, advanced manufacturing, computing and data infrastructure.

The initiative forms part of the Trump administration’s broader economic strategy to reduce reliance on rival nations and deepen coordination among allied partners. Other participating countries include Australia, Finland, India, Qatar, South Korea and Singapore.

The planned industrial hub will be located within the Luzon Economic Corridor, a key economic zone encompassing Manila and surrounding regions with established manufacturing capacity. The Philippines, Japan and the United States have also committed to increasing infrastructure investment in the corridor under a trilateral framework agreement.

“It is intended to serve as a staging point for a purpose-built platform for allied manufacturing,” the State Department said, adding that both countries aim to reinforce supply chains across semiconductors, electronics and other critical sectors.

The project underscores strengthening ties between Manila and Washington under President Ferdinand Marcos Jr., who has moved to deepen cooperation with the United States.

The Philippines, a former U.S. colony, has also taken on strategic importance in Washington’s efforts to counter China’s assertiveness in the South China Sea.

The benchmark KOSPI index has recovered nearly all of last month’s 19% decline, regaining momentum after being one of the world’s top-performing major indices last year. The rebound has been supported by renewed foreign inflows, with $4.2 billion returning to equities in April after record outflows of $23.8 billion in March, according to LSEG data.

Investor interest has been driven in part by the global surge in demand for high-bandwidth memory used in data centres, benefiting major South Korean chipmakers such as Samsung Electronics. Market participants said the March correction created attractive entry points, prompting portfolio reallocations into Korean technology stocks.

“We’re cautiously optimistic, but we think it’s a megatrend,” said Isaac Thong, senior investment director for Asian equities at Aberdeen Investments, referring to the long-term growth potential of AI-linked semiconductor demand.Despite the recovery, the recent market turmoil has exposed structural vulnerabilities.

South Korea’s equity market remains heavily concentrated in a small number of AI-linked firms, amplifying swings during periods of global uncertainty. Since the onset of the Iran war, the KOSPI has experienced sharp daily fluctuations, including declines of up to 12% and gains of 9%, outpacing volatility seen in other Asian and U.S. markets.

The South Korean won has remained near 17-year lows against the U.S. dollar, increasing the cost of energy imports and complicating policy responses. Authorities face a balancing act as measures to support growth risk fuelling inflation, particularly in an economy highly dependent on imported energy.

Government efforts to address the so-called “Korea discount” through corporate governance reforms have begun to attract activist investors, aiming to narrow valuation gaps linked to longstanding concerns over transparency and shareholder rights within family-run conglomerates.While equities have been volatile, South Korea’s bond market has shown resilience.

Companies raised $74.7 billion in the first quarter, maintaining strong issuance levels, while the benchmark 10-year government bond yield has declined this month to its lowest level since February.

Prospects for sovereign debt have improved further with anticipated inclusion in FTSE’s World Government Bond Index, prompting early inflows from major institutional investors including Japan’s Government Pension Investment Fund, alongside interest from global asset managers such as Goldman Sachs Asset Management and Principal Global Investors.

Analysts estimate that index inclusion could drive between $50 billion and $70 billion in passive fund inflows, reinforcing demand for Korean bonds even as equity markets remain sensitive to external shocks.

However, continued weakness in the won remains a key concern for global investors, with capital outflows and safe-haven demand for the dollar keeping the currency near levels last seen during past financial crises.

Authorities have responded with verbal interventions and strategic hedging operations by the state pension fund to stabilise the currency.

India’s semiconductor market is experiencing significant expansion. According to the India Electronics and Semiconductor Association (IESA), the market is projected to grow from $52 billion in 2024 to $103.4 billion by 2030, driven by sectors such as mobile handsets, information technology, telecommunications, consumer electronics, automotive, aerospace, and defense.

Notably, mobile handsets, IT, and industrial applications account for almost 70% of the semiconductor industry’s revenue and are expected to continue as the main contributors to growth.

Saudi Arabia’s Vision 2030 and Semiconductor Initiatives

Under Saudi Arabia’s Vision 2030 initiative, the Kingdom is making substantial investments to develop local semiconductor manufacturing capabilities, aiming to reduce dependency on external sources and enhance economic diversification. A key component of this strategy is the establishment of the National Semiconductor Hub, which has received an initial investment of $266 million. This initiative seeks to attract international semiconductor companies and cultivate a domestic industry capable of supporting Saudi Arabia’s technological growth.

Launched in 2016, Vision 2030 is Saudi Arabia’s ambitious roadmap to transform its economy and society. The initiative focuses on three primary pillars: a vibrant society, a thriving economy, and an ambitious nation. By diversifying its economy away from oil dependence, Vision 2030 aims to create a sustainable and innovative environment that fosters growth across various sectors, including technology, manufacturing, and services.

Strategic Collaboration with India

Saudi Arabia’s collaboration with India in the semiconductor sector is a strategic initiative aimed at leveraging India’s established expertise to bolster Saudi Arabia’s technological capabilities. Indian professionals have a significant presence in the global technology sector, particularly in Silicon Valley, where they have been instrumental in driving innovation and managing major tech companies.

This partnership is expected to facilitate knowledge transfer, technology sharing, and joint ventures, positioning Saudi Arabia as a competitive player in the global semiconductor market. Recent discussions between Saudi Industry Minister Bandar Alkhorayef and India’s TATA Group leaders underscore the potential for cooperation in various sectors, including electronics, which could further strengthen this collaboration.

By leveraging India’s expertise and Saudi Arabia’s investment initiatives, this partnership is poised to strengthen the semiconductor industry in the Middle East and contribute to the stability and growth of global supply chains. The ongoing efforts to establish a robust semiconductor ecosystem within Saudi Arabia align with the Kingdom’s Vision 2030 objectives, aiming to position the nation as a global hub for technology and innovation.