The recent reciprocal visits between Chinese President Xi Jinping and U.S. President Donald Trump have brought renewed attention to the economic and commercial relationship between the world’s two largest economies.
President Trump visited China in May 2026, followed by President Xi’s state visit to the United States from 23 to 25 September 2026. During their latest meeting in Washington, the two countries announced a number of economic understandings, including a US$30 billion reciprocal tariff reduction arrangement, the establishment of a China–U.S. Board of Trade and a new Board of Investment. The two sides also agreed to continue dialogue on artificial intelligence and other areas of economic cooperation.
For Australian businesses, the developments are relevant because Australia has significant commercial relationships with both China and the United States. China was Australia's largest two-way trading partner in 2025, with trade in goods and services valued at approximately A$326 billion, while the United States was Australia's second-largest trading partner at approximately A$158 billion. The United States is also Australia's largest foreign investor.
Potential implications for Australian businesses
A more stable China–U.S. trading environment could affect Australian businesses in several areas, including:
- Supply chains and trade: Changes in tariffs and market access may affect sourcing, manufacturing and distribution strategies involving China and the United States.
- Cross-border investment: Businesses considering investment or expansion across the three markets should continue to assess foreign investment, ownership and regulatory requirements.
- Technology and AI: Continued China–U.S. dialogue on AI may have implications for technology businesses, data, intellectual property and cross-border commercial arrangements.
- Investment structuring: Australian businesses with Chinese or U.S. investors may need to consider the interaction between Australian regulation and developments in the investors' home jurisdictions.
The latest developments do not remove the regulatory and geopolitical risks associated with cross-border commerce. Australian businesses should continue to consider applicable foreign investment, sanctions, export controls, intellectual property, tax and contractual risks when structuring international transactions.
For Australian companies with interests in China, the United States or both markets, the changing international environment reinforces the importance of reviewing commercial structures and transaction arrangements as trade and investment policies evolve.