The United States and China have agreed to a $30 billion reciprocal tariff-reduction arrangement and established a formal dialogue on artificial intelligence, following a three-day summit between Chinese President Xi Jinping and US President Donald Trump. China’s Ministry of Foreign Affairs announced the eight-point consensus, detailing steps to stabilize bilateral economic and technological ties between the world’s two largest economies.
Tariff Cuts and Trade Council Establishment
The newly brokered agreement includes a $30 billion reciprocal tariff-reduction arrangement aimed at easing trade pressures. According to China’s Ministry of Foreign Affairs, the two governments formally recognized the ongoing work of their economic teams and endorsed the creation of a dedicated trade council. This framework builds on previous negotiations held in Kuala Lumpur, with both sides agreeing to extend those earlier outcomes.
The tariff agreement follows a decision by Washington to extend a broader trade truce. US Treasury Secretary Scott Bessent announced on Wednesday that the two nations had agreed to push back the expiration date of the existing trade truce by two months from November 10, granting negotiating teams additional runway to hammer out a potentially bigger trade deal.
Artificial Intelligence Dialogue and Incident Channels
On technology policy, Beijing and Washington agreed to launch a structured dialogue to evaluate the risks and benefits of artificial intelligence. The Ministry of Foreign Affairs stated that the next round of AI discussions is scheduled for November. The two sides also agreed to set up a direct communication channel designed to manage AI-related incidents.
Global Summits and Foreign Policy Alignment
Beyond bilateral trade and technology, the leaders addressed upcoming multilateral engagements and international flashpoints. Xi and Trump agreed to support each other in hosting major diplomatic gatherings, with both signaling their intention to attend the upcoming Asia-Pacific Economic Cooperation (APEC) leaders’ meeting and the Group of Twenty (G20) summit hosted by the other nation. Chinese state media outlet Xinhua reported that Xi returned to Beijing on Saturday following the conclusion of the summit.
On foreign policy matters, the leaders reached consensus on regional stability. The Ministry of Foreign Affairs stated that both sides agreed Iran must fulfill its commitments to forgo nuclear weapons development. The leaders also concurred that no nation or entity should impose transit tolls on international waterways. The talks also touched on historical ties, with the two sides recalling that China and the United States fought as allies during World War II.
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