The tariff arrangement covers $30 billion worth of goods traded between the two countries. The White House said the agreement focuses on more favourable tariff treatment for non-sensitive goods. The move follows months of talks between Washington and Beijing. Both governments have worked to reduce tensions over trade and economic policies. The two sides also agreed to establish a trade council. The council will provide a channel for continued economic discussions.
China and the US also agreed to extend outcomes from earlier talks in Kuala Lumpur. Those discussions helped create a framework for further negotiations. The countries had already agreed to extend their trade truce by two months. The truce was originally scheduled to expire on November 10. The extension gives both sides more time to work on broader trade issues. US Treasury Secretary Scott Bessent confirmed the extension earlier this week.
AI dialogue between China and US
The agreement also covers cooperation and communication on artificial intelligence. China and the United States agreed to create a formal AI dialogue. The talks will focus on the risks and benefits linked to AI technology. The two countries plan to hold the next round of discussions in November. They will also establish a communication channel for AI-related incidents.
The channel could allow officials to communicate during incidents involving artificial intelligence. Both sides can use it to address concerns and share information. The AI agreement adds a technology-focused element to the wider trade discussions. AI has become an important area of economic and strategic competition between the two countries.
Xi Jinping’s US visit
The agreements were reached during Xi Jinping’s three-day visit to the United States. Xi met US President Donald Trump during the visit. The talks covered trade, technology and other bilateral issues. The two leaders also discussed several areas linked to economic cooperation. China’s state news agency Xinhua reported the eight-point consensus. Xi has since returned to Beijing, according to Chinese state media.
The latest measures do not represent a final trade agreement. Instead, they provide a framework for continued negotiations between the two countries. China, US agree to $30 billion tariff cut, AI dialogue during Xi visit as both sides seek to maintain communication on trade and technology. The tariff arrangement and AI dialogue could shape the next stage of China-US economic relations. Further talks are expected as both governments work through remaining trade issues.
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