The United States and China have reached a new agreement covering around $30 billion worth of goods, signalling a fresh attempt by the world’s two largest economies to ease trade tensions.
The agreement was reached during Chinese President Xi Jinping’s three-day visit to the United States, where he held talks with US President Donald Trump. Xi’s visit was his first trip to Washington since 2015.
According to the White House, the latest arrangement provides more favourable tariff treatment for several categories of goods traded between the two countries. US exports covered by the agreement include agricultural products, wood and cosmetics. Chinese products such as small household appliances, toys and decorations will also receive more favourable tariff treatment.
The two countries have also agreed to establish a trade council to continue discussions on economic and commercial issues. China’s Foreign Ministry said the decision follows earlier talks between the two sides in Kuala Lumpur and is intended to maintain dialogue on trade.
The latest development comes after Washington and Beijing agreed to extend their existing trade truce by another two months. The extension was aimed at giving negotiators additional time to work towards a broader trade understanding.
Xi and Trump meet in Washington
Xi and Trump held several hours of discussions at the White House before attending a state dinner with senior officials and business leaders. Among those present were Alphabet CEO Sundar Pichai, Microsoft CEO Satya Nadella, Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman.
Both leaders spoke about the importance of maintaining stability in US-China relations. Xi called for greater cooperation and said competition between the two countries should remain within appropriate limits.
New focus on artificial intelligence
Trade was not the only issue discussed during the summit. Washington and Beijing also agreed to launch a formal dialogue on artificial intelligence.
The proposed talks will examine both the opportunities and risks associated with AI. Another round of discussions is expected in November. The two countries will also create a communication channel for officials to discuss incidents involving AI.
The White House said Trump and Xi agreed to use the term “super intelligence” in their discussions instead of “artificial intelligence”. China also welcomed greater exchanges between the two countries on AI development.
Other areas of cooperation
The two sides also agreed to cooperate around major international meetings, including APEC and the G20. Trump and Xi are expected to attend meetings hosted by each other’s countries.
The tariff dispute between Washington and Beijing has continued for years, beginning with US tariffs imposed on Chinese imports in 2018. China responded with counter-tariffs and other trade measures, including export restrictions. The latest agreement represents another attempt by both sides to manage those long-running economic tensions.
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