China and the United States have agreed on a reciprocal tariff-reduction arrangement covering $30 billion of non-sensitive goods in each direction, while also establishing a new dialogue on artificial intelligence, according to Chinese officials and a White House fact sheet. The developments followed Chinese President Xi Jinping's three-day visit to Washington and an eight-point consensus reached between the two countries.
Trade Council and Tariff Measures Agreed
The two governments agreed to operationalise the U.S.-China Board of Trade and provide more favourable tariff treatment for selected goods worth $30 billion in each direction. Products covered include agricultural goods, seafood, wood products, cosmetics and medical devices on the U.S. export side, while selected Chinese consumer products are also included.
China's Foreign Ministry said the leaders also endorsed the work carried out by their economic teams and agreed to extend the outcomes of earlier negotiations in Kuala Lumpur. The latest arrangement follows an earlier decision to extend the existing trade truce by two months, giving both sides additional time for negotiations.
US-China Create Super Intelligence Dialogue
Artificial intelligence was another major area covered during the summit. The two countries agreed to establish the U.S.-China Super Intelligence (SI) Dialogue, which will provide a formal channel for discussing the risks and benefits associated with emerging AI technologies.
The White House said the countries agreed to use the term “super intelligence” rather than “artificial intelligence” for the technologies covered by the dialogue. The first follow-up exchange is expected by November 2026, while both countries will also establish a communication channel for AI-related incidents.
Chinese President Xi Jinping has separately said that China and the U.S. have both the capability and responsibility to develop and manage AI while keeping the technology under human control.
Broader Issues Remain on the Agenda
The summit also covered issues beyond trade and AI, including Iran, international waterways, Taiwan and wider strategic relations. The two sides additionally agreed to support each other as hosts of future G20 and APEC meetings.
Although the agreements create additional channels for economic and technological engagement, Reuters noted that major differences between Washington and Beijing remain unresolved, particularly over trade, AI, Taiwan and China's relationship with Iran.
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The latest agreements mark another step in efforts by the world's two largest economies to manage their economic and technological competition through formal dialogue and negotiated arrangements.