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BEIJING — <\/span>As Presidents Xi Jinping and Donald Trump prepare for a highly anticipated summit,<\/a> both China and the United States say their ties have been broadly stable in recent months \u2014 and they are planning on keeping it that way.<\/p>\n But a long list of issues are at stake in one of the world\u2019s most consequential relationship, with no easy end in sight. <\/p>\n Few expect major breakthroughs to the long-running frictions between China and the U.S., which range from competition in technology to the thorny question of Taiwan, whose main ally is the U.S. Ending the war with Iran is likely to be added to the agenda, with Beijing being one of the unofficial mediators in the conflict.<\/a><\/p>\n \u201cOn both sides there is a consensus that U.S.-China stability is important,\u201d said Henrietta Levin, senior fellow for the Freeman Chair in China Studies at the Center for Strategic and International Studies in Washington. \u201cOnce you get past the question of stability, the \u2018what\u2019s next\u2019 in the relationship gets a little more complicated, and so for that reason, the most likely thing to come out of the meeting is very little.\u201d<\/p>\n Here’s what to know about the summit:<\/p>\n The China-U.S. trade war started<\/a> with Trump\u2019s first term, but turned up a notch in April last year, on Trump\u2019s so-called \u201cLiberation Day,\u201d when he announced 34% tariffs on all Chinese goods. China retaliated with counter tariffs and other measures, such as restrictions on rare earth exports. Tariffs reached as high as 145% in the escalating back and forth.<\/p>\n The two sides, realizing the sky-high tariffs weren\u2019t sustainable, then called for a trade truce, halting many<\/a> of the punitive economic measures. The two leaders met in South Korea in October<\/a> and extended the truce for another year. China promised to purchase soybeans from American farmers, while the U.S. dropped tariffs by more than half.<\/p>\n \u201cChina\u2019s strategy was to promote stability by fighting back,\u201d said Fudan University professor Zhao Minghao, an expert in international relations. \u201cBoth sides could very well issue a comprehensive trade agreement this time. But this doesn\u2019t mean the war is over, and the agreement will have conditions.\u201d<\/p>\n Last year\u2019s trade truce did not resolve any of the bigger picture issues, and it did not mean a return to how things were. China now has a new export permit requirement for rare earth exports that it can tighten at any time.<\/p>\n Further, this time around, \u201cthere\u2019s been a lack of the intensive type of engagement that has characterized past summits,\u201d said Wendy Cutler, vice president of the Asia Society, and a former trade negotiator for the U.S. <\/p>\n China in April issued new regulations that built out a framework for identifying and countering foreign measures targeted at Chinese companies. Under the new rules, for example, China\u2019s Ministry of Commerce told impacted companies, such as one petroleum refinery<\/a> that bought Iranian crude oil, to ignore U.S. sanctions. <\/p>\n Although some say the sides could announce a continuation of the trade truce, they note they have continued to take targeted actions. \u201cIt\u2019s a fragile truce,\u201d said Cutler.<\/p>\n The White House said Sunday they are also planning to discuss creating a new \u201cBoard of Trade\u201d to keep their countries talking on economic issues.<\/p>\n The U.S. imposed restrictions on exports to China of advanced computer chips<\/a> and related tech, such as the machines to make the chips, as early as Trump\u2019s first term in office. <\/p>\n Nvidia, a California company and the leading designer of advanced chips, has pressed Trump to allow it to export them to China. Nvidia founder Jensen Huang has argued that selling the chips will build reliance on American tech for Chinese AI firms. <\/p>\n But the increasing list of restrictions on chip exports may only push China deeper in its drive for self-reliance. \u201cChina\u2019s attitude has changed subtly, it seems more focused on advancing its domestic chip industry rather than continuing to rely on advanced chips from the United States,\u201d Zhao said in written comments. <\/p>\n Two weeks before the meeting, Chinese Foreign Minister Wang Yi said in a call with U.S. Secretary of State Marco Rubio that the bilateral relationship has remained generally stable, but Taiwan remains the \u201cbiggest risk\u201d to their ties. China signaled again<\/a> on Thursday that Taiwan would be a top priority for discussion. <\/p>\n Few expect a resolution to the Taiwan issue, lingering since China and Taiwan split in a civil war in 1949. While Beijing claims Taiwan, the island is a self-ruled democracy. <\/p>\n Tensions have only risen since Taiwan first elected Tsai Ing-wen as president in 2016. Her Democratic Progressive Party says Taiwan is functionally independent and its own sovereign state. Beijing has broken off communication with Taiwan\u2019s government, and in recent years, started sending warplanes and warships closer to the island in almost daily drills. <\/p>\n The island\u2019s current President Lai Ching-te is also from the DPP. Beijing has criticized Lai repeatedly, even depicting him as a \u201cparasite\u201d in propaganda imagery for its military exercises. <\/p>\n The U.S. is required by law to ensure Taiwan can defend itself but officially maintains a position of what has been called strategic ambiguity, leaving it a question of whether the U.S. would get involved militarily if China decided to reclaim Taiwan by force. Trump has also said recently that he discussed arms sales to Taiwan with Xi, which led to further questions of whether the U.S. would support Taiwan<\/a>. <\/p>\n \u201cOne possibility is that China and the U.S. can take the strategy of a sort of \u2018reciprocal restraint\u2019, such as reducing the number of American arms sales to Taiwan, in exchange for fewer military exercises from the mainland aimed at Taiwan,\u201d said Zhao.<\/p>\n As the world awaits an end to the war in Iran that has shaken the global economy, the conflict is likely to surface in the talks. <\/p>\n China has openly criticized the United States and Israel over the war. In addition, given its close political and economic ties with Iran, it is seen by some as an unofficial mediator that could influence Tehran. So far, Beijing has remained cautious, preferring to not get deeply involved.<\/p>\n \u201cI don\u2019t think China has any interest in solving the problems the U.S. has created for itself in the Middle East,\u201d Levin, of the Center for Strategic and International Studies, said. <\/p>\n A few days before the trip, U.S. Treasury Secretary Scott Bessent called on China to pressure Iran to open the Strait of Hormuz, and said that by buying Iranian oil, Beijing is funding terrorism.<\/p>\n \u201cLet\u2019s see if China \u2014 let\u2019s see them step up with some diplomacy and get the Iranians to open the strait,\u201d Bessent said on Fox News. \u201cIran is the largest state sponsor of terrorism, and China has been buying 90% of their energy, so they are funding the largest state sponsor of terrorism.\u201d<\/p>\n<\/div>\n