Former Treasury chief Hank Paulson says the Trump-Xi meeting is in jeopardy because of the Iran war
Former US Treasury Secretary Hank Paulson discusses the market implications of artificial intelligence, conflict in the Middle East and more on ‘The Claman Countdown.’
Former US Treasury Secretary Hank Paulson said the upcoming meeting between the United States and China may not happen if the war in Iran continues, as Beijing grows increasingly dissatisfied with the aggressive US military campaign.
President Donald Trump is expected to meet with Chinese President Xi Jinping in May for high-level talks focused on rising tensions in the Middle East and US-China relations.
“There will be no meeting if we go back to war,” Paulson, referring to the two-week ceasefire in the US-Iran conflict, told The Claman Countdown on Tuesday. “But the Chinese are very interesting. They have been saying, ‘Please don’t do this with Iran, but come over here.’
His comments came as China criticized the blockade of US warships in Iranian ports, describing the move as reckless and dangerous.
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Chinese President Xi Jinping applauded during the session of the China National People’s Congress. (Lintao Zhang / Getty Images)
Paulson’s comments also follow the Treasury Department sending letters to banks in Oman, the United Arab Emirates and China, putting them on notice to cooperate with Iran, according to Edward Lawrence of FOX Business.
Paulson said the United States’ relationship with China is a very important bilateral relationship, but added that there is a “significant trust deficit” that needs to be addressed.
“They are very competitive economically … and they are enemies when it comes to military matters,” he said.
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The former Treasury secretary said that because the two economies are deeply integrated, he described the US-China economic relationship as a “guaranteed economic disruption.”
“Each country knows that the other can do things that will disrupt their economy,” Paulson told FOX Business anchor Liz Claman. “And they know that. And no country can afford a trade war right now.”
Paulson predicted how Trump’s meeting with Jinping in May would play out, suggesting it would focus on stability as tensions flared in Iran.
President Donald Trump addresses reporters before answering questions before boarding Air Force One on April 10, 2026, at Joint Base Andrews, Md. (Wina McNamee/Getty Images/Getty Images)
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“We will see ways to manage trade so that it does not get out of control,” he explained. “We’re going to see ways to have more cross-border investment. And the biggest thing we need to get out of this is to put guardrails in place so that everyone understands each other’s red lines, we can compete, and we don’t get into a trade war.”
The former Treasury secretary also commented on the economic impact of Trump’s war on Iran as the ongoing conflict in the Strait of Hormuz causes oil prices to rise.
“Our economy is better able to withstand these shocks than anywhere else in the world,” Paulson said. “So, what I’m looking at is disruption elsewhere that spills over into the US economy.”
