Keep pulling the thread on West Texas Intermediate.
President Trump stated on Truth Social that he intends to ask Chinese President Xi Jinping to open Chinese markets to American companies.
Potential deliverables from the U.S.-China summit include purchase agreements for U.S. agricultural products like soybeans and corn, energy products, and Boeing 737 Max aircraft.
President Trump plans to confront China during the summit about its status as the largest importer of Iranian crude oil.
U.S. exports to China declined by approximately 25% last year due to Chinese retaliatory measures.
The United States is not in a strong position to win the trade war with China due to China's market dominance over essential products like rare earths, permanent magnets, and certain semiconductors from companies like Nexperia.
China's export controls on rare earths and permanent magnets last year caused shortages that nearly shut down the American automobile industry.
China produces 90% of the world's supply of rare earths and 90% of its permanent magnets.
The Trump administration's theory for potentially relaxing AI chip export controls is that flooding the market with American chips could discourage the development of China's domestic chip ecosystem.
Despite the U.S. offering to sell AI chips, Chinese President Xi Jinping has directed Chinese tech companies to prioritize sourcing components locally.
Chinese President Xi Jinping has explicitly stated his long-term goal is the eventual reunification of Taiwan with mainland China.
China has been providing support to help sustain Russia during its war in Ukraine.
Higher energy costs, resulting from the closure of the Strait of Hormuz, are contributing to broader wholesale inflation.