
Agreement between Xi Jinping and Donald Trump to exchange views on the risks and benefits of artificial intelligence and extend the trade truce
China and the United States agreed to establish a communication channel to discuss the risks of artificial intelligence and extend the tariff truce, during President Xi Jinping's visit to Washington.
AI-generated summary
These steps come as part of the two countries' attempts to manage escalating trade and technology tensions since May 2025.
Chinese state media confirmed that China and the United States agreed to establish a "communication channel" to discuss any incidents related to artificial intelligence, during the state visit of Chinese leader Xi Jinping to Washington this week.
This agreement is reminiscent of the “Red Telephone” that existed during the Cold War, linking Moscow and Washington in an attempt to avoid another nuclear confrontation, in the wake of the Cuban missile crisis in 1962, although it is not yet clear exactly what form the new communication channel will take.
The Xinhua News Agency reported on Saturday that President Xi and US President Donald Trump agreed to “launch a Chinese-American dialogue on artificial intelligence to exchange views on the risks and benefits” related to this technology, and its first forum is expected to be held in Shenzhen during November.
As the two countries that control the most advanced AI models, and whose competition is accelerating the technology's rapid development, any agreement between the United States and China is crucial, even if it appears to achieve relatively little in material terms.
The two leaders also discussed the trade war that has become the features of their relationship, according to a Xinhua statement. They agreed to an arrangement to reduce mutual customs duties worth $30 billion, and to extend the agreement reached by officials in Kuala Lumpur in October, which aims to contain the escalating trade war between the two countries.
This came after US Treasury Secretary Scott Besent announced on Wednesday that the United States and China had extended the trade truce between them again, with this additional extension ending on January 10. The truce, which sets tariff levels at 30% on Chinese goods and 10% on US goods, has been extended several times since May 2025, when representatives from the two countries met in Geneva for negotiations.
However, both countries have continued to withhold from each other exports they consider to be of national security importance. For example, the United States has prevented China from obtaining advanced electronic chips used in the field of artificial intelligence, while China has granted very few licenses to American companies to obtain rare earth minerals necessary for electronic industries and military equipment.
During Xi's official visit this week, the two leaders also discussed Iran, agreeing that it should not develop nuclear weapons, and that "no country or institution should impose transit fees on international waterways," Xinhua reported.
Xinhua added that two giant pandas will also be rented to the Atlanta Zoo, in continuation of the ancient Chinese tradition of using "panda diplomacy" to strengthen relations with other countries.
The statement also referred to cooperation between law enforcement agencies in China and the United States regarding anti-drug operations, and to the alliance that brought the two countries together during World War II.
AI outlook — possibilities, not facts
The first forum for dialogue on artificial intelligence is held in Shenzhen
Very likely · Within months

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