US President Donald Trump pressed Chinese President Xi Jinping during talks in Washington to halt direct or indirect assistance to Iran. Trump described Chinese support for Tehran as "totally unacceptable," according to US Ambassador to China David Perdue.

Perdue stated that Washington received assurances from Beijing on Thursday that China would not continue assisting Tehran. The ambassador noted that the US had already observed some movement on the issue following these discussions.

Conflicting narratives emerge

The diplomatic pressure coincides with reports that China supplied Iran with shoulder-fired air-defense systems and helped Tehran circumvent US sanctions on oil exports. However, an Iranian senior official contradicted the US account, telling Reuters that Chinese officials assured Tehran that Beijing would not restrict its economic, political, or military relationship with Iran due to pressure from Trump.

Allegations of military and economic aid

Washington is examining specific allegations regarding Chinese entities' role in supporting Iran. Key points of contention include:

• Military hardware: Reports indicate Iran was expected to receive Chinese-made shoulder-fired air-defense missile launchers.
• Sanctions evasion: Tehran reportedly used barter-like arrangements to continue selling oil and purchasing Chinese goods despite sanctions.
• Intelligence sharing: Trump previously played down reports that Chinese entities provided satellite imagery to Iran before an attack in Jordan that killed three US troops.

Legislative pressure

US lawmakers had urged Trump to confront Xi over allegations that Chinese entities provided assistance to Iran that may have contributed to attacks resulting in US casualties. The administration's stance reflects a broader strategy to isolate Iran economically and diplomatically, with officials suggesting that curbing Chinese support is central to this approach.

Chinese President Xi Jinping stated that China and the US can find the right way to get along on this planet they both call home. Speaking after a grand welcome ceremony at the White House on September 24, Xi emphasized that both nations stand to gain from cooperation and lose from confrontation.

Xi noted that there is no need to shy away from competition, but it must be healthy and kept within bounds. He described the relationship as a race where both sides strive to catch up with each other, rather than a contest with only a winner and a loser. This rhetoric reinforces his earlier call for a relationship where cooperation is the mainstay, with moderate competition and manageable differences.

Trade truce extended to January

The diplomatic engagement follows significant economic developments. Treasury Secretary Scott Bessent confirmed that the two sides agreed to extend the Busan Agreement, a temporary trade truce, by two months until January 10. Xi described this outcome as "good news," reinforcing the path toward deeper bilateral engagement despite unresolved disputes.

The announcement followed Xi's arrival for a US state visit on September 23. At the Joint Base Andrews summit, President Donald Trump welcomed Xi with a ceremonial military display, including a B-1 bomber flyover. The extension of the truce provides a window for continued dialogue, although Bessent noted it leaves "unfinished business" regarding a larger comprehensive deal.

Business community backs deeper engagement

American business leaders have reinforced the case for sustained bilateral engagement. Harley Seyedin, Chairman and President of the American Chamber of Commerce in South China (AmCham South China), said his chamber represents over 2,300 member firms accounting for nearly 40% of bilateral trade and investment volume. Key findings from the chamber's 23 consecutive years of annual surveys are summarised below.

Seyedin told Beijing Review that most US companies maintain profitable operations in China, securing faster and higher returns than in other global markets. He stressed that uncertainty is the biggest enemy of cross-border investment and that the two highly integrated economies cannot be separated.

Michael Hart, President of the American Chamber of Commerce in China (AmCham China), whose more than 4,000 members span finance, healthcare, advanced technology, and artificial intelligence, echoed this view. He said high-level face-to-face dialogues send reassuring signals to the global business community and encourage US firms to expand their footprint in China.

Unresolved disputes remain

Despite the extension of the trade truce and new arrangements, significant friction points persist. Key areas of contention include:

• Taiwan: Xi is expected to press Beijing's sovereignty claims, while Trump is likely to maintain existing export controls. The Chinese side's position on safeguarding national reunification and territorial integrity is clear-cut, according to state media.
• Rare-earth minerals: China's controls on these critical materials have created scarcity, impacting global supply chains.
• Narcotics: Ongoing disagreements persist over drug enforcement cooperation.
• Iran sanctions: Bessent warned that China's purchases of Iranian oil expose Chinese refineries to US sanctions.

Technology and cultural exchange

Xi stated that China and the US are major AI powers and can cooperate, noting that AI dialogue can continue. This aligns with the presence of major US tech figures at state functions, despite ongoing regulatory tensions. State media emphasized that as both major countries in artificial intelligence, China and the US have more reasons to cooperate in AI, leveraging their respective strengths rather than guarding against each other. It is imperative to maintain human control over AI technologies and ensure AI serves human progress.

Beyond trade and technology, cultural engagement has emerged as a complementary channel. Ryan Martin, an American actor featured in Once Upon a Time in the Middle East, a box office success in China, said disrupted dialogue breeds misunderstanding and potential conflict. He noted that cultural works abandoning simplistic stereotypes can bridge societal gaps and fill the communication vacuum caused by shrinking academic and people-to-people exchanges.

In a move to bolster these exchanges, Xi announced an invitation for 100,000 young Americans to visit China for exchanges and study in the coming five years. This initiative underscores the two sides' commitment to steering bilateral ties toward sustainability and stability.