The agreement comes as Washington and Beijing seek to stabilize relations between the world’s two largest economies after months of trade tensions.
- The two countries also endorsed the establishment of a trade council and agreed to extend the outcomes of earlier negotiations in Kuala Lumpur, China’s Ministry of Foreign Affairs said.
- President Donald Trump and President Xi Jinping also agreed that Iran should honor its commitment of not developing nuclear weapons, while stressing that international waterways should not be subject to tolls.
- The two countries also agreed to establish a formal dialogue on AI, covering the technology’s potential benefits and risks.
U.S. and China have reached an eight-point consensus covering trade, artificial intelligence and broader economic ties following a three-day summit between President Donald Trump and Chinese President Xi Jinping.
The agreement comes as Washington and Beijing seek to stabilize relations between the world’s two largest economies after months of trade tensions, with both sides also extending an existing truce to allow negotiations to continue.
US, China Agree On $30B Tariff Cut Deal
At the center of the agreement is a $30 billion reciprocal tariff-reduction arrangement, according to China’s Ministry of Foreign Affairs.
The two countries also endorsed the establishment of a trade council and agreed to extend the outcomes of earlier negotiations in Kuala Lumpur, the ministry said.
Trump and Xi also agreed that Iran should honor its commitment of not developing nuclear weapons, while stressing that international waterways should not be subject to tolls.
The latest steps build on a broader trade truce that Washington and Beijing agreed to extend by two months. Earlier on Wednesday, U.S. Treasury Secretary Scott Bessent said that the extension would push the truce’s expiration beyond its previously scheduled Nov. 10 deadline, giving both sides additional time to work toward a larger trade agreement.
US, China To Launch AI Dialogue
The two countries also agreed to establish a formal dialogue on AI, covering the technology’s potential benefits and risks.
The first new round of discussions is scheduled for November, while Washington and Beijing will establish a communication channel for incidents involving AI, according to China’s Foreign Ministry.
Xi pointed to AI as an area where Washington and Beijing have both the capability and responsibility to cooperate, saying the technology should remain under human control and serve the well-being of people.
Xi Reiterates That US, China Can Avoid ‘Thucydides Trap’
Xi said that the U.S. and China should strengthen communication and pursue cooperation rather than confrontation, reiterating that the two countries can avoid the historical pattern known as the “Thucydides Trap.”
Speaking at the White House during his state visit, Xi said the two countries should maintain dialogue, seek common ground while setting aside differences and build mutual trust despite their differing national conditions.
“China and the United States must hold the line of no conflict and no confrontation between the two countries. The Thucydides Trap can be overcome,” he said.
He added that the two countries have deeply intertwined interests and that cooperation between them is important for addressing global challenges.
During the after-hours session, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, rose 0.09%; the Invesco QQQ Trust ETF (QQQ) gained 0.12%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.04%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘extremely bullish’ territory.
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