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Date: September 26, 2026
Reporter: Emilly Jordan
China and the United States have agreed to a $30 billion reciprocal tariff-reduction arrangement and to launch a new dialogue on artificial intelligence, according to China’s Foreign Ministry, following Chinese President Xi Jinping’s three-day state visit to Washington.
The agreements were part of an eight-point consensus reached during Xi’s meetings with U.S. President Donald Trump, Beijing said on Saturday. The two countries also agreed to establish a trade council and extend the results of earlier economic and trade discussions held in Kuala Lumpur.
The announcement provides additional details about the outcome of Xi’s visit, which ended Friday after a highly publicized summit at the White House. Although the visit featured elaborate ceremonies and extensive personal diplomacy between Trump and Xi, the two governments had not initially announced major breakthroughs on their most difficult economic and strategic disputes.
The new tariff arrangement covers reciprocal reductions involving $30 billion worth of goods. Earlier U.S. discussions had focused on providing more favourable tariff treatment for selected non-sensitive products, including agricultural goods, medical devices and consumer products.
The agreement comes after Washington and Beijing agreed earlier this week to extend their existing trade truce by two months. The truce had been scheduled to expire on November 10, giving negotiators additional time to work toward a broader trade agreement. U.S. Treasury Secretary Scott Bessent announced the extension on Wednesday.
The two sides also agreed to establish a formal trade council intended to provide a mechanism for continued economic discussions. China said the countries endorsed the work of their respective economic teams and agreed to build on outcomes reached during previous negotiations in Kuala Lumpur.
Artificial intelligence was another major component of the new understanding. China said Washington and Beijing would establish a dialogue covering both the risks and benefits of AI, with the next round of discussions scheduled for November.
The countries also agreed to establish a communication channel for AI-related incidents. The mechanism is intended to give the two governments a way to communicate about incidents involving artificial intelligence as the technology becomes increasingly important to both economies and national-security systems.
The AI discussions come as Washington and Beijing compete for technological leadership in areas including artificial intelligence, advanced computing and other emerging technologies. The two governments have previously disagreed over technology restrictions, export controls and access to advanced computing equipment.
Beyond trade and technology, the eight-point consensus also included several foreign-policy issues. China said the two leaders agreed that Iran should fulfil its commitment not to develop nuclear weapons.
The governments also agreed that no country or other entity should impose transit tolls on international waterways, according to China’s Foreign Ministry. The issue has particular significance amid continuing tensions around major shipping routes in the Middle East, including the Strait of Hormuz and the Red Sea.
Washington and Beijing also agreed to support each other in hosting major international meetings. Both governments said their leaders plan to attend gatherings hosted by the other country, including the Asia-Pacific Economic Cooperation leaders’ meeting and the Group of 20 summit.
The latest agreements followed a three-day visit during which Trump and Xi held extensive discussions on trade, technology and international affairs. Xi has since returned to Beijing, according to Chinese state media.
The summit also included highly symbolic events designed to emphasize the personal relationship between the two leaders. Trump and Xi attended a state dinner at the White House and later met for tea before visiting the National Archives, where they viewed historic U.S. documents.
Trump described the visit positively, while Xi said the two countries should manage their differences and maintain a stable relationship. The leaders' public remarks emphasized cooperation even as major disagreements remain over Taiwan, technology, trade and China's relationship with countries such as Iran.
The new $30 billion tariff arrangement represents a further step toward reducing some of the trade pressure that has built up between the two economies. However, the agreement does not resolve the broader strategic competition between Washington and Beijing.
The extension of the trade truce, the creation of a trade council and the new AI dialogue give negotiators additional channels for continued engagement. The next rounds of discussions, including the planned November AI talks, will provide an opportunity for the two governments to work through issues that remain unresolved.
For now, the eight-point consensus provides a framework for continued U.S.-China economic and technological cooperation while leaving several major areas of disagreement open for further negotiations.