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China, US agree to AI dialogue, tariff cuts on $30b in goods during Xi visit

The tariff reductions would apply to US exports such as agricultural goods, wood and cosmetics, as well as US imports including small appliances, toys and decorations.

Reuters
Shanghai, China
Sun, September 27, 2026

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US President Donald Trump and US First Lady Melania Trump greet Chinese President Xi Jinping and China’s First Lady Peng Liyuan upon their arrival at Joint Base Andrews in Maryland on September 23, 2026. Xi is visiting the United States from September 23 to 25. US President Donald Trump and US First Lady Melania Trump greet Chinese President Xi Jinping and China’s First Lady Peng Liyuan upon their arrival at Joint Base Andrews in Maryland on September 23, 2026. Xi is visiting the United States from September 23 to 25. (AFP/Kent Nishimura)

T

he United States and China have agreed to reduce tariffs on US$30 billion of goods and launch a dialogue on AI, both countries said following President Xi Jinping's visit to Washington.

The tariff reductions would apply to US exports such as agricultural goods, wood and cosmetics, as well as US imports including small appliances, toys, decorations, a White House statement said on Friday.

"The two countries reached consensus on recommendations for more favorable tariff treatment for $30 billion of non-sensitive goods in each direction," the White House said.

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The three-day summit between Xi and President Donald Trump, which ended on Friday, showcased personal diplomacy rather than big public breakthroughs. Xi has since landed in Beijing, Chinese state news agency Xinhua reported on Saturday.

The two sides also agreed to set up a trade council and extend the outcomes of earlier talks in Kuala Lumpur, the Chinese Foreign Ministry said.

The agreement follows a move by the world's two largest economies to extend by two months a trade truce that had been due to expire on Nov. 10, allowing more time to work on ‌a potentially bigger trade deal, US Treasury Secretary Scott Bessent said on Wednesday.

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"This historic visit enriched the constructive and stable China-US relationship, upheld the overall stability of bilateral ties, opened a new chapter in China-US relations, and will have a far-reaching impact on world peace and development," Chinese Foreign Minister Wang Yi said in a statement.

Dialogue on AI

On artificial intelligence, the two sides agreed to hold a dialogue on the technology's risks and benefits, with the next round of discussions set for November, and to set up a communication channel for AI-related incidents, the Chinese Foreign Ministry and the White House said.

The White House said that the leaders had agreed to use the term "super intelligence" in place of "artificial intelligence."

In a separate statement, the Chinese ministry said that Beijing valued Washington's use of the new term.

As AI technology continues to advance, the two sides should step up exchanges and work toward consensus in line with new developments, it said.

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The two sides also agreed 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 agreed that Iran should fulfil its commitment not to develop nuclear weapons, and that no country or entity should impose transit tolls on international waterways, both countries said.

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