Trump-Xi Summit Kicks Off as Trade Data Signals Sharp U.S.-China Decline

BEIJING (Day.News) — President Donald Trump landed in Beijing on May 14, 2026, for a pivotal two-day summit with Chinese President Xi Jinping, as fresh trade data underscores the fraying economic ties between the world's two largest economies. China's General Administration of Customs reported merchandise exports to the U.S. fell 10.2% year-over-year to $133.4 billion in the first four months of 2026, while imports from the U.S. declined 10.9% to $45.8 billion, widening the bilateral trade surplus to $87.7 billion. The figures, released Saturday, coincide with Trump's visit aimed at stabilizing relations battered by years of tariffs now averaging nearly 48%, up from 3.1% pre-2018, per Peterson Institute for International Economics analyst Chad Bown. Despite an April uptick — with exports to the U.S. rising 11.3% to $36.8 billion and imports up 9% to $13.7 billion — the overall trend reflects a profound decoupling. U.S. Census Bureau data shows China now ranks fourth in contributing to the U.S. goods trade deficit, behind Taiwan, Vietnam and Mexico, its lowest since joining the World Trade Organization in 2001. China's share of U.S. imports has plummeted from 22% in early 2017 to 7.5% in Q1 2026, as American firms shift production to Vietnam and India, and Beijing reroutes exports through Southeast Asia. Trump, downplaying frictions over rare earth minerals, AI and electric vehicles, touted booming U.S. profits from China trade last week: "We're earning a significant amount — it's not like it used to be." Yet U.S. exports to China dropped nearly $50 billion last year from 2022 levels, partly due to halted soybean purchases amid last year's flare-up. The summit, the first of four planned this year, seeks to extend an October 2025 truce pausing tariff escalations, with China eyeing purchases of U.S. soybeans, beef and Boeing aircraft. U.S. officials float creating a bilateral Board of Trade for ongoing economic talks, following March negotiations in Paris. Former Commerce Secretary Wilbur Ross emphasized interdependence: "The notion that China could be entirely self-sufficient from us, and vice versa, is simply not realistic." Manufacturers like Dongguan's Michael Lu of Brothersbox express hope for a "more stable" U.S. market, though a return to 2010s trade peaks seems unlikely amid Iran conflict tensions and tech export controls. Global markets, already awaiting key U.S. economic releases, hang on summit outcomes that could ripple through supply chains and stocks. U.S.-China trade volumes crashed over 25% by end-2025 due to tariffs, per Peterson Institute research, even as China posted a $1.1 trillion global surplus. Any de-escalation could boost tech shares, but persistent hurdles signal a new era of managed competition.