Trump to Meet Xi as Hormuz Blockade and Trade Frictions Bite

China’s U.N. envoy Fu Cong told reporters the Strait of Hormuz blockade will be a central topic when President Trump meets Xi Jinping in Beijing on May 14–15. He called reopening the waterway “urgent” and noted China’s May presidency of the U.N. Security Council will prioritize Middle East issues.

Fu said the immediate aim is to secure and sustain a ceasefire in the Iran war and to push for good‑faith negotiations between the parties. He expects the strait to remain blocked when Trump arrives, making the disruption a high item on the bilateral agenda. The White House confirmed the visit; it will be the president’s first trip to the People’s Republic of China in eight years after earlier delays tied to the Gulf conflict.

The Strait of Hormuz normally carries about 20% of global oil and gas. At the height of the crisis, transit through the strait was estimated to halt roughly 13 million barrels of crude per day. Markets drew on strategic reserves and benchmark crude prices rose.

The World Bank projects global energy prices to increase about 24% in 2026 and fertilizer costs to climb roughly 31%, factors that add inflationary pressure and slow growth in lower‑income countries. Buyers shifted purchases, and China reported $26 billion in energy product sales in March 2026, more than half the value recorded in March 2025.

Bilateral trade flows between the United States and China have changed over the past year. Tariffs on some goods reached as high as 145%. Overall trade between the two countries fell about 30%, and roughly $130 billion of Chinese exports to the U.S. disappeared. China redirected about $55 billion in exports to Europe, other parts of Asia, the Middle East and Africa.

Export controls have affected technology firms. A March 2026 survey of chip and tech companies found 56% now wait more than 180 days for export licenses and about one‑third wait over 300 days. More than half of respondents reported lost business, 62% said customer relationships suffered and 58% said they lost clients to foreign competitors. A separate poll of U.S. experts found 57% do not believe the bilateral relationship is stabilizing, 26% saw improvement and 3% expected both governments to fully honor agreements.

Economist Daniel Lacalle, who manages roughly €1 billion at Tressis Gestion, described the situation as a “three‑way standoff” between the U.S., Iran and China and said rising economic pressure could push the parties to reach a combined agreement. He projected that when the strait reopens the dollar index could fall to about 96, oil prices would ease from recent peaks but remain above pre‑conflict levels, and that gold had already dropped roughly 20% from earlier highs.

Fu emphasized the Security Council will work to create conditions for a lasting ceasefire and a negotiating process. “The most urgent issue is to keep the ceasefire. And the ceasefire needs to last, and there has to be a good‑faith negotiation between the two sides,” he said. Chinese officials plan to press for steps to reopen maritime traffic and reduce the risk of further energy shocks during the visit.

U.S. and Chinese officials framed the talks as an opportunity to prevent competition from escalating into direct confrontation and to pursue practical measures to stabilize markets and supply chains while diplomatic efforts continue. Officials did not expect a single meeting to resolve all disputes over trade, technology and regional security.