As Donald Trump stepped off Air Force One and onto Beijing Capital International Airport on May 13, 2026, much was said without saying anything at all. With tech billionaires Elon Musk and Jensen Huang flanking him and brass bands and waving flags greeting him in the airport, it appeared as though the setting could not be any more ceremonious. Yet, something about this particular event seemed different than Trump’s myriad other diplomatic occasions.
Consider Trump’s body language in Beijing compared to his attitude during recent visits: The victor in Riyadh with Saudi Arabia’s Crown Prince, the belligerence towards Ukraine’s Zelensky, the nonchalance shown while welcoming Pakistan’s Prime Minister Shehbaz Sharif, or even the good-natured exchanges with India’s Prime Minister Modi. In Beijing, however, observers noticed something markedly different from Trump.
A Trip Influenced by War and Weakening Power
It marked the first time in almost ten years that an American president visited China. Trump’s last trip had been in 2017. The meeting, which was originally set for April, was postponed because of the upcoming 2026 war with Iran.
The Council on Foreign Relations characterized the meeting as an attempt at stabilizing relations between the two powers rather than trying to solve problems. It reflects the mindset of a country more concerned with stability than aggression.
“As China feels remarkably more confident compared to the first such summit in 2017,” says Scott Kennedy of the Center for Strategic and International Studies (CSIS). This confidence did not arise overnight but is a result of careful patience, control over rare earths, and wielding economic leverage that caught Washington by surprise. Xi Jinping had already scored victory in the trade war of 2025 by imposing restrictions on the export of rare earth minerals essential for smartphone and fighter jet production, resulting in a temporary ceasefire in tariffs at the Busan Summit in October.
Addressing the attendees at the summit in Beijing, Xi Jinping raised a philosophical question about the possibility of avoiding the “Thucydides Trap” — the tendency for the rising power and the reigning power to clash. With this statement, he put China squarely in the former position and subtly portrayed the United States as the latter.
Destruction of America’s International Reputation Through the Iran War
Since the U.S.-Israel conflict against Iran started on February 28, 2026, America’s role on the international scene has become increasingly difficult due to events that will take decades for the country to overcome. In part, Trump’s visit to Beijing was aimed at asking for help from Xi in forcing Tehran to reopen the Strait of Hormuz, an area where about 20 percent of the planet’s total oil and gas supply usually passes through. Weeks of unsuccessful attempts to convince China preceded Trump’s arrival there.
America has once again followed the same scenario in its involvement in Iran’s war that has also been observed in the conflicts in Afghanistan and Iraq.
Dollar’s Next Nemesis: The Petroyuan
Perhaps the most important consequence to come out of this era of strife lies within the domain of finance, not warfare. Iran made the surprising decision to begin collecting transit fees in the Strait of Hormuz, requiring yuan for the transaction.
As per Lloyd’s List, by late March 2026, at least two ships had already used the yuan to pay their fees, arranged by a maritime services firm based in China. Al Jazeera revealed that Iran’s embassy in Zimbabwe went as far as to announce that it was high time to introduce the “petroyuan.”
This is extremely important. Petrodollars have been used by the United States since the 1970s. This is based on oil being traded worldwide in American dollars, thus creating permanent demand for U.S. dollars and allowing them to borrow at low interest rates. But while the Hormuz toll was not what killed the petrodollars, as pointed out by Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis, “it adds incremental pressure and normalises alternatives in energy flows.”
Mallika Sachdeva, Deutsche Bank strategist, warned of the possibility that this would cause the fall of petrodollar supremacy and begin a petroyuan system. It can be said that if the petrodollar falls into disuse as the indispensable currency in global energy trading, then this will definitely have serious consequences for the American people – higher borrowing costs and reduced global leverage.
The Question Americans Should Be Asking About the Summit
While the meeting between Trump and Xi in 2026 was a reflection of a diplomatically weak US that was militarily overstretched and was in an economic position that made it more vulnerable than ever, the summit has come to signify much more than that. Just like the conflicts in Afghanistan and Iraq, the war in Iran was extremely costly and it was not clear whether the country had anything to gain from it. What Americans saw when watching President Trump in Beijing trying to convince China to help them in handling a situation created by them should raise a question: what did the US achieve?
The point is that while the world sees the US losing its dominance in many ways, it watches how this process occurs gradually. Whether we speak about CSIS analysts or people on the streets of Beijing, we hear a clear message – everyone can see that American power is being negotiated behind the scenes.
Source: The information contained in this piece is sourced from news reports from Al Jazeera, CNBC, CNN, the Council on Foreign Relations, CSIS, Fortune, Asia Times, and the Atlantic Council as of May 14, 2026.
















