The United States and China have agreed to reduce tariffs affecting about $30 billion worth of goods in each direction and establish a new dialogue on artificial intelligence, following a three-day meeting between US President Donald Trump and Chinese President Xi Jinping.
According to a White House statement, the proposed tariff changes would provide more favourable treatment for a range of non-sensitive goods traded between the two countries.
The products covered include US exports such as agricultural products, wood and cosmetics, while imports into the United States would include products such as small appliances, toys and decorations.
The agreement also provides for the establishment of a bilateral trade council and extends the outcomes of earlier discussions held in Kuala Lumpur, according to China’s Foreign Ministry.
The latest developments follow an agreement by Washington and Beijing to extend their existing trade truce by two months. US Treasury Secretary Scott Bessent had said the extension would provide additional time for negotiations toward a potentially broader trade agreement.
New US-China AI Dialogue
Beyond tariffs, artificial intelligence emerged as a significant area of cooperation between the world’s two largest economies.
The two governments agreed to establish a dialogue focused on the risks and benefits of advanced AI technologies, with another round of discussions scheduled for November.
They also agreed to establish a communication channel for incidents involving AI.
The White House said the two leaders agreed to use the term “super intelligence” rather than “artificial intelligence” in their discussions.
China’s Foreign Ministry said Beijing welcomed Washington’s use of the new terminology and called for greater exchanges between the two countries as AI technology continues to develop.
The agreement reflects the growing importance of AI as both an economic and strategic issue, particularly as governments seek to address the opportunities and risks associated with increasingly advanced technologies.
Wider Economic and Diplomatic Implications
The summit also produced agreements covering international cooperation beyond trade and technology.
Washington and Beijing agreed to support each other in hosting meetings of the Asia-Pacific Economic Cooperation (APEC) forum and the G20, with both leaders expected to attend summits hosted by the other country.
On foreign policy, the two sides said Iran should honour its commitment not to develop nuclear weapons. They also agreed that no country or entity should impose transit tolls on international waterways.
Chinese Foreign Minister Wang Yi described the visit as a development that strengthened what Beijing characterised as a constructive and stable China-US relationship.
President Xi has since returned to Beijing, according to China’s state news agency Xinhua.
For businesses, the agreement provides a new development in the ongoing effort by Washington and Beijing to manage trade tensions while maintaining economic engagement. The proposed tariff adjustments could affect companies involved in agricultural products, consumer goods, manufacturing and other sectors covered by the agreement.
The planned AI dialogue also signals that competition and cooperation between the two economic powers is increasingly extending beyond traditional trade issues into the rapidly developing technology sector.
