Trump Faces China Trade Summit Amid Calls to Tackle Cars, Currency and Chips

President Donald Trump is slated to meet Chinese leader Xi Jinping in Washington on September 24. Analysts warn that Trump’s trade strategy has left three critical “C’s”—automobiles, the renminbi and semiconductor chips—insufficiently addressed, threatening U.S. manufacturing competitiveness.

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During his first term and early in his current administration, Trump reshaped the U.S.–China trade relationship with extensive tariffs and a “Board of Trade” limited to “nonsensitive” goods. He upheld the 2019 Phase One agreement but later eased tariffs after Chinese retaliation in 2025 and postponed actions on shipbuilding and other sectors. The administration has also pursued reshoring of chip production, securing a $200 billion commitment from Micron, acquiring a stake in Intel and backing federal investments in semiconductor firms.

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• China posted a record $1.2 trillion trade surplus last year, despite a modest shrinkage in the overall U.S.–China trade deficit.

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• U.S. auto jobs have been eroded by decades of factory closures, a trend Trump’s tariffs were intended to reverse.

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• Automobiles – China’s heavily subsidized auto industry now exports vehicles worldwide, creating what some observers label an “existential threat” to U.S. auto employment. Allowing Chinese-owned factories on American soil while barring imports could entangle the broader manufacturing ecosystem in a foreign-controlled supply chain.

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• Currency – Persistent concerns about renminbi manipulation raise the cost of U.S. imports and affect the competitiveness of domestic producers.

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• Semiconductors – Dependence on foreign-made chips leaves critical defense and technology sectors vulnerable. While Trump has promoted domestic chip production, he has also entertained pleas from executives such as Nvidia’s Jensen Huang to sell high-end chips to China, creating ambiguity about the reshoring agenda.

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Chinese officials have signaled willingness to discuss the three “C’s” at the upcoming summit, though specific policy proposals remain undisclosed.

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Sources agree that the U.S.–China trade deficit has narrowed, yet they differ on the significance of China’s $1.2 trillion surplus versus its impact on U.S. manufacturing. No source provides definitive data on how many auto jobs would be affected by permitting Chinese factories in the United States, leaving a critical gap for policymakers.

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The September 24 summit will be the first high-level dialogue between Trump and Xi since the 2025 tariff escalations. Observers anticipate discussions on automotive subsidies, renminbi valuation and semiconductor export controls, but concrete outcomes remain uncertain.

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