US President Donald Trump praised China's Xi Jinping as a great leader and personal friend as they launched two days of discussions on Thursday. The agenda includes their vulnerable trade agreement, the ongoing Iran conflict, and American arms sales to Taiwan.

"You are a great leader - sometimes people dislike me saying that, but I say it regardless," Trump remarked to Xi while seated opposite each other with their respective delegations nearby.

"Some call this the most significant summit in history. It is an honor to be here with you, an honor to call you a friend. The China-US relationship will be stronger than ever," Trump added.

Xi responded to Trump: "The success of one nation offers opportunities for the other. A steady China-US partnership benefits the world at large. Cooperation brings gains to both; confrontation harms both."

Trump's approval ratings have suffered amid his involvement in Middle East affairs. This eagerly awaited journey to China - the first by a sitting US president to the nation's primary strategic competitor since his 2017 visit - carries extra weight.

Accompanying Trump are several CEOs aiming to address business challenges in China, such as Elon Musk and Nvidia CEO Jensen Huang, who joined at the last minute. Trump indicated his top ask to Xi would be to further "open" China to American industries.

The lavish two-day summit began with Xi welcoming Trump on a red carpet outside the grand ceremonial hall. The leaders exchanged handshakes and broad smiles.

A brass band performed the national anthems, after which the pair walked by lines of honor guards and children holding flowers along with US and Chinese flags. Trump occasionally tapped Xi on the back.

The balance of power has evolved since Trump's prior Beijing trip, when China spared no effort to impress him and committed to purchasing billions in US products, noted Ali Wyne, a senior adviser on US-China ties at International Crisis Group.

"Previously, China sought to demonstrate its rising stature to America. Now, the US is voluntarily recognizing that stature," Wyne observed. He referenced Trump's recent revival of the 'G2' concept - denoting a leading power pair - during an APEC sideline meeting with Xi in South Korea last October.

This week's engagements offer ample direct interaction: talks at the Great Hall of the People, a visit to the UNESCO-listed Temple of Heaven, and a state banquet Thursday, followed by tea and lunch Friday, per White House details.

Trump approaches these negotiations from a position of relative disadvantage.

US courts have restricted his unilateral tariff powers on Chinese and other imports. The Iran war has fueled domestic inflation and heightened chances that Republicans could lose one or both congressional chambers in November midterms.

Despite China's economic slowdown, Xi faces no equivalent domestic or political strains.

Still, both parties wish to preserve the October trade truce, where Trump paused steep triple-digit tariffs on Chinese imports and Xi eased threats to restrict global rare earth supplies essential for electric vehicles to weaponry.

Discussions will likely cover mechanisms to boost bilateral trade and investment, plus AI-related dialogues.

Washington aims to export Boeing aircraft, agricultural products, and energy to China to shrink a persistent trade gap that bothers Trump. Beijing seeks relaxed US limits on chipmaking gear and advanced semiconductors, according to planning officials.

Beyond commerce, Trump plans to urge China to press Tehran toward a Washington deal to halt the fighting. Experts question whether Xi will strongly influence Tehran or cut military aid, considering Iran's role as a Beijing counterbalance to US influence.

US Secretary of State Marco Rubio stated on Fox News from Air Force One that resolving the crisis aligns with China's interests, as many of its vessels remain in the Gulf and a global slowdown would damage its exports.

US arms sales to Taiwan take center stage in talks

For Xi, US weapons sales to Taiwan - the self-governing island Beijing claims - rank highly.

China voiced firm opposition to the sales Wednesday, with the fate of a $14 billion package pending Trump's decision uncertain. US law mandates aiding Taiwan's defense despite absent formal ties.

"Trump lacks many leverage points, though he likely does not perceive it that way," said Ronan Fu, assistant research fellow at Taiwan's leading government think tank, Academia Sinica.

"Trump will not simply grant Beijing's every demand or yield to its requests," Fu added.

Xi has a return trip to the US penciled in for later this year, marking his initial visit since Trump's 2025 return to the White House.