China, U.S. agree tariff cuts, AI talks after Washington summit

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China-U.S. tariff deal and AI talks

Highlights

China and the U.S. agreed to reciprocal tariff cuts worth $30 billion and to establish a joint trade council after the Washington summit.
Both countries will launch an official dialogue on artificial intelligence risks and benefits, with the next talks and dedicated communication channel set for November.
The two sides extended their trade truce by two months beyond November 10, providing additional time to negotiate a potentially larger trade deal.

Summit agreements on trade and AI

As reported by CNBC, citing the Chinese Foreign Ministry, Beijing and Washington have agreed to reciprocal tariff cuts worth $30 billion, to establish a trade council and to carry forward the outcomes of earlier talks in Kuala Lumpur.

The ministry says the two sides also agree to launch a dialogue on artificial intelligence covering the technology’s risks and benefits. The next round of discussions is set for November, and the countries plan to create a communication channel for AI-related incidents.

The latest understanding follows an earlier decision by the world’s two largest economies to extend by two months a trade truce that had been due to expire on Nov. 10. U.S. Treasury Secretary Scott Bessent said on Wednesday the extension gives both sides more time to work toward a potentially larger trade deal.

Broader diplomatic and geopolitical implications

The three-day summit between Xi and President Donald Trump ends on Friday with more emphasis on personal diplomacy than on major public breakthroughs. Xi has since returned to Beijing, according to Chinese state news agency Xinhua.

Beyond trade, both sides agree to support each other in hosting the Asia-Pacific Economic Cooperation leaders’ meeting and the Group of 20 summit, with both leaders planning to attend the gatherings hosted by the other.

On foreign policy, the leaders agree that Iran should fulfill its commitment not to develop nuclear weapons and that no country or entity should impose transit tolls on international waterways. The U.S. Embassy in Beijing does not immediately respond to a Reuters request for comment.

Our earlier coverage of the Xi–Trump summit focused on Beijing’s messaging that U.S.-China competition can be managed without sliding into military confrontation, including Xi’s remarks about overcoming the “Thucydides Trap.” We noted the emphasis on setting guardrails for rivalry through stronger crisis communication between the two countries’ militaries, alongside broader efforts to stabilize bilateral ties amid sensitive issues such as Taiwan.

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