BEIJING (REUTERS)

China's Xi Jinping told President Donald Trump that trade talks were making progress at the start of a two-day summit on Thursday.

The Chinese leader's remarks, ​reported by the official Xinhua news agency, set the stage for what Trump described as possibly the "biggest summit ever" following a pomp-filled reception at Beijing's imposing Great Hall of the People. This is the first visit by a US president to America's main strategic rival since Trump's last trip there in 2017.

After an opening ceremony that featured an honour guard and throngs of children excitedly ⁠waving flowers and flags, Xi opened the summit by telling Trump that stable relations between the world's two biggest economies benefit the entire world.

"When we cooperate, both sides benefit; ​when we confront each other, both sides suffer," he said in brief remarks that were open to media.

"You're a great leader, sometimes people don’t like me saying it, but ​I say it anyway," Trump ‌responded. "There are those who say this may be the biggest summit ever," he added.

Behind closed doors, ⁠Xi said negotiations ​between economic and trade teams on Wednesday had reached an "overall balanced and positive outcome", according to a readout by China's state-run Xinhua news agency.

The latest round of negotiations aimed to maintain the trade truce struck between Trump and Xi last October, and establish mechanisms to support future trade and investment, officials with knowledge of the matter said.

Joining Trump on the ‌trip are a group of CEOs looking to resolve issues with China, including Elon Musk and Nvidia CEO Jensen Huang, a late addition. Trump has said his first request to Xi will be to "open up" China to US industry.

Musk, Huang, and Apple's Tim Cook were present during the opening talks between the leaders, with Musk telling reporters they were "wonderful" as he left the Great Hall.

This week's ​leaders' meetings will provide plenty of face time between Xi and Trump: after their initial talks, they will tour the UNESCO heritage site Temple of Heaven and attend a state banquet on Thursday, before taking tea and lunch together on Friday, according to the White House.

Both sides are eager to maintain a trade truce struck last October in which Trump suspended ​triple-digit tariffs on Chinese goods and Xi backed away from choking global supplies of rare earths, vital ‌in ⁠making items from electric cars to weapons.

They are ‌also expected to discuss forums to support mutual trade and investment and dialogue on AI issues.

Washington looks to ‌sell Boeing airplanes, farm goods, and energy to China to cut a trade deficit, while Beijing wants the US to ease curbs on exports of chipmaking equipment and advanced semiconductors, officials involved in the planning said.

Aside from trade matters, Trump ⁠is expected to encourage China to convince Iran to make a deal with Washington to end the conflict.

Xi has a reciprocal visit tentatively planned ​for later this year, which would be his first visit to the United States since Trump re-took office in 2025.