China and the United States are talking about making a new fund that could help Chinese companies build factories and make products in the United States. This idea came as both countries prepare for an important meeting in Beijing in April 2026 between Chinese President Xi Jinping and U.S. President Donald Trump. The talks are meant to reduce trade tensions and show some positive results before the summit.
The fund idea was shared by James Zimmerman, who leads the American Chamber of Commerce in China. He said that China has shown some interest in the idea of investing in U.S. manufacturing, but China wants protection for these investments. The protection could mean rules or guarantees that keep Chinese money safe and give investors confidence. This proposal is similar to past plans that helped companies from Japan, Taiwan and South Korea build factories in the U.S.
At Sydney Zimmerman said that it was unlikely that the leaders will agree to one big deal that solves all problems between both countries at the April meeting. Instead, both leaders might announce smaller deals that seem positive for the public and government in their countries. Zimmerman also said that Trump may want to show good results before the U.S. midterm elections in November.
China and the United States have been in a long trade fight. Both countries have put taxes (called tariffs) on each other’s products. But now, they agreed to slow down this fight and talk more about trade and cooperation. China is thinking about supporting business in the U.S. by helping Chinese companies build factories and create jobs there. At the same time, the U.S. has paused some strict rules against Chinese technology companies.
The plan for a China‑U.S. manufacturing fund is linked to discussion about trade, tariffs, exports and imports between the world’s two largest economies. Both sides are also considering deals on soybean and energy exports, and may look at removing some trade barriers as part of the negotiations. Trump will likely ask China to buy more products from the U.S. At the same time, China may ask the U.S. to remove strict rules on selling advanced technology, like computer chips.
Right now, the U.S. has stopped some plans to restrict Chinese tech companies. This includes rules about phones and computer equipment from China. These actions are meant to reduce tensions and make the meeting easier and comfortable between both leaders.
Experts say that while this manufacturing fund idea could encourage Chinese investments in U.S. industry, it will not solve major problems. Issues like technology competition, trade, and national security remain sensitive. For example, rare earth minerals and advanced chips are key points of meeting, and both sides want to protect their own economic interests.
The leaders from both countries are careful but hopeful that they can solve some business problems. Moving slowly may help people worry less about bigger trade fights, and these talks could also help the U.S. and China work better together and have more stable relations in the future.