US-China summit agrees to establish AI dialogue and lower mutual tariffs
4▲0 ▼0Impact / 5
Chinese President Xi Jinping paid a state visit to the United States from September 23 to 25, holding a US-China summit with President Trump. The two leaders agreed to establish an "AI dialogue" under the bilateral economic and trade consultation mechanism, with Vice Premier He Lifeng and US Treasury Secretary Bessent serving as the leads for the talks; they held the first meeting and agreed to convene the next dialogue by the end of November, as well as to set up a dedicated channel for communicating about AI-related incidents. On tariffs, both the United States and China agreed to advance a framework under which roughly 90 percent of the items each side imports from the other, worth about 30 billion dollars, would be lowered to most-favored-nation tariff rates. On the US side, the items covered include Chinese-made toys, home appliances, and infant and child products, while on the Chinese side they include US agricultural products, personal care products, medical devices, and coal. In addition, the two sides extended the deadline of the existing trade truce over additional tariffs from November 10, 2026 to January 10, 2027, and plan to establish an agricultural working group under the US-China trade committee, with its first meeting to be held by the end of 2026. On the Taiwan issue, the word "Taiwan" does not appear in the outcome documents released by the two governments, and a key point to watch going forward is whether President Trump will approve a 14 billion dollar arms sale to Taiwan.