But Sun Yun, director of the China program at the Stimson Center, said Trump is bound by the Taiwan Relations Act, a domestic law that obligates the U.S. to maintain an unofficial relationship with the island and provides it with sufficient hardware to deter any invasion by China.

Yet analysts say the Chinese leader is likely holding out for concrete deliverables before agreeing to the high-profile meeting. Trump dramatically escalated the trade war with the world's second-largest economy in April, rolling out sweeping new tariffs that prompted China to respond with its own export duties and other measures.

US President Donald Trump hinted at a "not-too-distant" visit to China after an invitation from Xi Jinping, signalling possible diplomacy amid trade tensions, and geopolitical strains.