• Chinese President Xi Jinping calls for fair treatment of Chinese companies in the U.S., echoing past appeals amid ongoing trade negotiations.
  • The statement comes as U.S. and Chinese officials discuss reciprocal tariff reductions and a trade truce extension until November 10, 2026.
  • Despite tentative stabilization, deep-seated tensions over technology, export controls, and national security persist, leaving businesses in uncertainty.

Xi's Appeal for Fairness

Chinese President Xi Jinping on Thursday urged the United States to treat Chinese firms fairly, according to people familiar with the matter, as the world's two largest economies navigate a fragile trade truce. The appeal, while not directed at any specific company, underscores Beijing's longstanding grievance over what it sees as discriminatory measures targeting Chinese businesses, from tech giant Huawei to social media platform TikTok.

"We hope Chinese firms are treated fairly in the U.S.," Xi said during a meeting with visiting U.S. business leaders, according to a senior Chinese official who requested anonymity to discuss closed-door talks. The phrasing mirrors Xi's 2019 conversation with then-President Donald Trump, when both sides sought to de-escalate a trade war that had rattled global markets.

Trade Talks Show Signs of Progress

The statement comes amid a tentative stabilization of U.S.-China relations. Negotiators from both sides have been discussing reciprocal tariff reductions covering roughly $30 billion of goods each, along with potential Chinese tariff cuts on U.S. liquefied natural gas and agricultural products, according to two people briefed on the matter. A recent trade truce has suspended some tariff and non-tariff measures until November 10, 2026, including the U.S. 24% reciprocal tariffs and corresponding Chinese actions.

But the détente is partial. Strategic competition over technology, export controls, data security, and investment remains unresolved, and Washington's concerns over military ties, intellectual property, and state subsidies continue to shape restrictions even as trade tensions ease.

Competing Definitions of Fairness

The word "fair" means different things to each side. Beijing argues that Chinese companies should receive open, non-discriminatory treatment and not face broad restrictions simply due to their nationality or presumed ties to the state. U.S. policymakers counter that restrictions are justified when a firm's products, data, technology, ownership, or alleged military links pose national-security risks.

That tension was on full display in June 2026, when China protested a U.S. move to add several major Chinese companies to a Defense Department list of firms alleged to assist China's military. Such listings can lead to federal contracting restrictions beginning in 2027. The U.S. has also used export controls to limit China's access to advanced semiconductors and AI technology, prompting Beijing to develop its own countermeasures.

Business Impact and Outlook

For Chinese firms with U.S. operations, the practical relevance is broad. Greater exposure to export controls, Pentagon-related restrictions, and scrutiny of ownership and data practices could impede capital raising, supply chains, and technology access. U.S. companies operating in China, meanwhile, remain vulnerable to reciprocal measures and regulatory uncertainty. A thaw could reopen Chinese demand for U.S. farm goods and LNG, benefiting producers and exporters.

"The key question is whether the two governments can create transparent, evidence-based rules that distinguish ordinary commerce from legitimate national-security cases," said a Beijing-based trade lawyer who asked not to be named. "Without that, firms will continue to duplicate supply chains and reduce exposure to either country."

Related developments include ongoing negotiations over tariff rollbacks and energy purchases, as well as Beijing's parallel effort to reassure U.S. businesses that it will improve the business environment. China's Commerce Ministry did not respond to a request for comment on the status of talks.

Correction: An earlier version of this article misstated the date of the trade truce suspension. It runs until November 10, 2026, not November 1.