The leaders of the world's two largest economies are set to sit down together this week, in a meeting markets and diplomats alike are watching closely.
President Donald Trump and Chinese President Xi Jinping are scheduled to meet at the White House on Thursday. The two leaders have a wide range of matters they could address, from trade and tariffs to technology policy and the broader economic relationship between the two countries, which has gone through repeated periods of tension and negotiation over the past several years.
The meeting comes against a backdrop of an active year for trade policy. In July, the United States imposed new tariffs, including a 10 percent duty, on a wide range of countries as part of a broader push tied to supply chain and labor standards concerns. Trade friction between Washington and Beijing has been a recurring feature of the relationship since Trump's first term, and it has continued to shape decisions by companies about where to manufacture goods and source components, including the computer chips and electronics that have been central to this year's technology stock rally.
Financial markets have shown sensitivity to the state of the US China relationship all year, with stocks and currencies in the Asia Pacific region often moving on headlines about the two governments' trade posture. Ahead of Thursday's meeting, equity futures in Hong Kong, South Korea and Australia were pointing higher on Tuesday, part of a broader lift in Asian markets that also reflected the rally on Wall Street and easing oil prices tied to hopes for progress in the Iran conflict.
Neither government has released a detailed agenda ahead of the meeting, and officials on both sides have generally kept specifics of leader level discussions close until after they occur.
Markets will be watching for any statements coming out of Thursday's meeting on tariffs, technology export rules, or other trade measures that could affect global supply chains.
What will Trump and Xi discuss?
No official agenda has been released, but trade, tariffs and technology policy are widely expected to be on the table given ongoing tensions between the two countries.
Why are markets watching this meeting?
The US China relationship has repeatedly moved global markets this year, and investors are watching for any signals about tariffs or trade policy that could affect companies and supply chains.