Rubio meets Wang Yi in Manila as 2 superpowers prepare September summit

US Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi met in Manila on July 22, keeping a potential Trump-Xi summit on track for September.

The meeting between the world's two largest economies' top diplomats in Manila on Wednesday kept alive plans for a September summit between Presidents Donald Trump and Xi Jinping, even as disputes over election meddling and the South China Sea strained ties.

"Both sides acknowledge that there are significant differences between the United States and China, but I think there are also potential areas where we can cooperate," Rubio told reporters after the talks, calling it "reckless and irresponsible" for the two countries to forgo maintaining a relationship.

The meeting on the sidelines of the ASEAN Foreign Ministers' Meeting came as Trump has said Xi will visit the United States on Sept. 24, though Beijing has yet to officially confirm the schedule. Rubio said the two sides discussed areas where they could work together to make it "a very positive visit." The diplomatic engagement follows a fragile truce between Washington and Beijing after their leaders met in May, the first face-to-face meeting since Trump returned to office.

A breakdown in diplomatic momentum could reignite trade tensions between the two economies that together account for more than 40 percent of global gross domestic product, threatening supply chains from semiconductors to consumer goods. Markets are watching for any official readouts on trade, technology restrictions, or tariff policy that could emerge from the summit preparations.

Wang characterized 2026 as a "big year" for bilateral relations during the meeting, referencing the Beijing summit that established a "constructive strategic stability" framework. He urged both sides to translate the leaders' consensus into whole-of-government action while conveying China's stern position on recent US "negative words and actions," according to the official readout from Beijing. Trump last week renewed allegations that China interfered in US elections, accusations Beijing has denied.

The South China Sea emerged as a flashpoint during the Manila gathering. Rubio criticized China's use of coast guard vessels around Taiwan to press territorial claims, saying Washington viewed such actions as "contrary to the strategic stability that both countries are seeking." In an opinion piece published on his arrival, Rubio said ASEAN countries were confronting "new and coercive threats" in the waterway, warning that freedom of navigation was "by no means guaranteed."

Wang pushed back, telling ASEAN Secretary-General Kao Kim Hourn that certain elements of the Philippines' security apparatus had "deliberately engaged in provocations and created maritime incidents" that served the interests of "external forces." He said the South China Sea issue should not become an obstacle in China's relations with ASEAN. Australia separately voiced concern over recent confrontations between Chinese and Philippine forces in the disputed waters.

Iran Tensions Cast Shadow Over Regional Talks

Beyond US-China dynamics, the ASEAN meetings were dominated by concerns over the Middle East conflict. Rubio blamed Iran for the lack of progress in diplomatic efforts, saying the United States remained ready for talks if Tehran demonstrated genuine commitment. He warned that Iran must not be allowed to control the Strait of Hormuz, arguing it could create a dangerous precedent that could be repeated in Southeast Asia.

The Strait of Hormuz handles about 21 percent of global oil trade, and any disruption could push crude prices higher, adding to inflationary pressures across Asian economies already exposed to energy price volatility. ASEAN foreign ministers earlier expressed serious concern about recent developments in the war, with their economies highly exposed to energy disruptions from the conflict.

The Manila meetings showed the delicate balancing act facing Southeast Asian nations as they navigate between the two superpowers. Rubio also attended a Quad meeting with India, Australia, and Japan on the sidelines, where the group reaffirmed its commitment to a free and open Indo-Pacific. China, meanwhile, called for greater regional trust and cooperation with ASEAN, setting the stage for intensifying competition over the region's future direction ahead of the September summit.

This article is for informational purposes only and does not constitute investment advice.