China and US announce trade agreement and dialogue on artificial intelligence

China said this Saturday (26) that it had reached an agreement with the United States on a reciprocal tariff reduction mechanism worth US$30 billion and on the start of a dialogue on artificial intelligence, as part of an eight-point consensus reached during President Xi Jinping's visit to Washington, USA.

The two sides also agreed to set up a trade council and build on the results of previous talks in Kuala Lumpur, the Chinese Foreign Ministry said.

The agreement follows an earlier move by the world's two largest economies to extend for two months a trade truce that was due to expire on November 10, giving more time to work on a possible broader trade agreement, US Treasury Secretary Scott Bessent said last Wednesday (23).

The three-day summit between Xi and President Donald Trump, which concluded on Friday (25), highlighted personal diplomacy rather than publicly announced major breakthroughs. Xi has already arrived in Beijing, Chinese state news agency Xinhua reported on Saturday.

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

On artificial intelligence, the two sides agreed to maintain a dialogue regarding the risks and benefits of the technology, with the next round of discussions scheduled for November, and to create a communication channel for AI-related incidents, the Chinese Ministry of Foreign Affairs said.

In another statement, the ministry also stated that Beijing valued Washington's use of the term "superintelligence" instead of "artificial intelligence". As AI technology continues to advance, both sides should intensify exchanges and work to reach a consensus in tune with new developments, he added.

The two sides also agreed to support each other in holding the Asia-Pacific Economic Cooperation leaders' meeting and the G20 summit, and both leaders plan to attend meetings hosted by the other country.

Regarding foreign policy, the leaders agreed that Iran must fulfill its commitment not to develop nuclear weapons and that no country or entity should impose transit tariffs on international waterways, the ministry said.