emirates7 - As Presidents Xi Jinping and Donald Trump prepare for a highly anticipated summit, both China and the United States say their ties have been broadly stable in recent months — and they are planning on keeping it that way.

But a long list of issues are at stake in one of the world’s most consequential relationship, with no easy end in sight.

Few expect major breakthroughs to the long-running frictions between China and the U.S., which range from competition in technology to the thorny question of Taiwan, whose main ally is the U.S. Ending the war with Iran is likely to be added to the agenda, with Beijing being one of the unofficial mediators in the conflict.

“On both sides there is a consensus that U.S.-China stability is important,” said Henrietta Levin, senior fellow for the Freeman Chair in China Studies at the Center for Strategic and International Studies in Washington.

“Once you get past the question of stability, the ‘what’s next’ in the relationship gets a little more complicated, and so for that reason, the most likely thing to come out of the meeting is very little.”

There may be a trade deal, but not a resolution
The China-U.S. trade war started with Trump’s first term, but turned up a notch in April last year, on Trump’s so-called “Liberation Day,” when he announced 34% tariffs on all Chinese goods. China retaliated with counter tariffs and other measures, such as restrictions on rare earth exports. Tariffs reached as high as 145% in the escalating back and forth.

The two sides, realizing the sky-high tariffs weren’t sustainable, then called for a trade truce, halting many of the punitive economic measures. The two leaders met in South Korea in October and extended the truce for another year. China promised to purchase soybeans from American farmers, while the U.S. dropped tariffs by more than half.

“China’s strategy was to promote stability by fighting back,” said Fudan University professor Zhao Minghao, an expert in international relations. “Both sides could very well issue a comprehensive trade agreement this time. But this doesn’t mean the war is over, and the agreement will have conditions.”

Last year’s trade truce did not resolve any of the bigger picture issues, and it did not mean a return to how things were. China now has a new export permit requirement for rare earth exports that it can tighten at any time.

Further, this time around, “there’s been a lack of the intensive type of engagement that has characterized past summits,” said Wendy Cutler, vice president of the Asia Society, and a former trade negotiator for the U.S.

China in April issued new regulations that built out a framework for identifying and countering foreign measures targeted at Chinese companies. Under the new rules, for example, China’s Ministry of Commerce told impacted companies, such as one petroleum refinery that bought Iranian crude oil, to ignore U.S. sanctions.

Although some say the sides could announce a continuation of the trade truce, they note they have continued to take targeted actions. “It’s a fragile truce,” said Cutler.

The White House said Sunday they are also planning to discuss creating a new “Board of Trade” to keep their countries talking on economic issues.