The leaders also agreed to strengthen investment and trade cooperation, although key issues including rare earth supplies remain unresolved…reports Asian Lite News Desk
US President Donald Trump and Chinese President Xi Jinping have agreed on measures aimed at easing tariffs covering $60 billion in two way trade and launched a new dialogue on advanced artificial intelligence.
The agreements emerged from Xi’s state visit and represent the first concrete economic and technology outcomes from the latest engagement between the two leaders.
A White House fact sheet said the US China Board of Trade had reached consensus on recommendations for “more favorable tariff treatment” covering $30 billion of non sensitive goods in each direction.
China gave a stronger description of the agreement, referring to an “arrangement for a 30 billion US dollar reciprocal tariff reduction” and saying the two leaders had directed officials to implement it.
Neither Washington nor Beijing disclosed the proposed tariff rates, the scale of the reductions or when the changes would take effect.
The US goods covered by the recommendations include agricultural products, fish and seafood, logs and wood products, cosmetics and medical devices. Chinese products covered include small appliances, toys, holiday decorations and children’s car seats.
The Board of Trade also established a working group focused on barriers affecting agricultural trade. The mechanism, along with a separate US China Board of Investment, was chartered during a Trump and Xi summit in Beijing in May and formally put into operation during the latest Washington visit.
The investment board will discuss potential investment projects and obstacles while also providing a regular channel for dealing with commercially significant investment disputes.
The White House said China had agreed to import at least 10 million metric tonnes of US coal in 2027 and at least another 10 million tonnes in 2028.
That commitment, however, was not included in China’s published list of outcomes from the summit.
Rare earth supplies remain another unresolved issue between the two countries. Washington said discussions were continuing over US concerns about shortages of rare earths and other critical minerals, with the stated aim of restoring shipments to appropriate levels.
China’s official statement on the summit did not mention the rare earth issue.
Xi said stable economic relations would require both cooperation and competition between the two countries.
“Cooperation is a two-way street. To keep the economic and trade ties stable, the list of cooperation needs to be lengthened, and the list of issues shortened,” he said, according to China’s Foreign Ministry.
Technology emerged as another major area of discussion, with Washington and Beijing agreeing to establish a new mechanism focused on advanced AI.
The White House said Trump and Xi agreed to use the term “super intelligence” rather than “artificial intelligence” for the emerging technologies covered by their discussions.
The two countries will establish a US China Super Intelligence Dialogue to exchange views on the potential benefits and risks of the technology. The next exchange is expected to take place by November.
They will also create a bilateral communication channel for incidents involving advanced AI systems.
China referred to the mechanism as the China US AI Dialogue and also said the next exchange would take place in November.
Xi stressed the importance of keeping humans involved in the development and use of advanced AI.
“AI must be kept under human control,” he said.
The two leaders also agreed to pursue what they described as a “constructive relationship of strategic stability”, based on respect, fairness and reciprocity.
Trump and Xi are expected to meet again at the Asia Pacific Economic Cooperation summit in Shenzhen in November and at the Group of 20 summit in Miami in December.
Their discussions also covered a number of wider international issues, including Iran, Russia and North Korea.
According to the White House, Trump and Xi agreed that Iran must never acquire a nuclear weapon. They also discussed international waterways, with the US statement saying no country or institution should impose tolls on international waterways.
The latest agreements come as Washington and Beijing continue efforts to manage tensions over trade and technology while maintaining economic ties between the world’s two largest economies.
While the tariff discussions mark movement towards lower trade barriers, the absence of details on rates, timing and the treatment of sensitive areas means the practical impact of the agreement remains to be determined.
