US President Donald Trump and Chinese President Xi Jinping met in Beijing in a summit that analysts said could mark a reset in relations between the world's two largest economies, reported NBC News.

The leaders discussed trade imbalances, Taiwan, rare earths, and the Iran conflict, with expectations that the meeting could formalize a truce in the long-running trade war. Harvard professor Graham Allison stated that the 'big word will be stabilisation' as both sides seek to avoid escalation.

The summit followed last year's talks in South Korea that eased tensions, with Trump referring to the US and China as G2 powers. Analysts indicated that the meeting was a defining test for the global power dynamic, with the US, China, and the European Union accounting for 60 percent of global GDP.

Mr. Trump's delegation included executives from Tesla, Apple, Boeing, and BlackRock, raising hopes for expanded business ties. Professor Allison suggested that China could announce purchases of up to US$1 trillion in American goods, including aircraft, soybeans, beef, and semiconductors.

Nvidia chief Jensen Huang joined the trip, highlighting the role of artificial intelligence. Washington cleared 10 Chinese firms to buy Nvidia's H200 chips, though restrictions remain on its most advanced products.

Analysts noted that the summit underscored a shift towards a multipolar world. HSBC economist Justin Feng remarked on the move from a post-Cold War unipolar system to a contested multipolar order, while Bank J Safra Sarasin's Dong Chen stated that the G2 framework would put both countries on equal footing.

The talks also touched on the war in Iran, though observers said a breakthrough was unlikely. Former Indian ambassador Gautam Bambawale indicated that China could only help to a limited extent, while Professor Allison compared Beijing's stance to its limited role in Russia's war against Ukraine.