China and US Strike $30 Billion Tariff Deal, Initiate AI Talks
As part of an eight-point agreement signed during Chinese President Xi Jinping’s visit to the US, the US and China have agreed to initiate talks on artificial intelligence and enter into a $30 billion reciprocal tariff-reduction agreement, according to China’s Ministry of Foreign Affairs. The two sides acknowledged the efforts of their economic teams and supported initiatives such as the formation of a trade council, the tariff-reduction arrangement, and the continuation of results from previous discussions in Kuala Lumpur, according to the ministry. The United States and China had previously reached an agreement to prolong a trade truce by two months, which was set to lapse on November 10.
This extension provides additional time to negotiate a potentially more comprehensive trade deal, as stated by US Treasury Secretary Scott Bessent on Wednesday. The leaders of the world’s two largest economies concluded a three-day summit that emphasised personal diplomacy over significant public advancements. Xi has since arrived in Beijing, as reported by sources on Saturday. On artificial intelligence, the two sides reached a consensus to initiate a dialogue aimed at exploring the technology’s associated risks and benefits. The subsequent round of discussions is scheduled for November, and a communication channel for AI-related incidents will be established, as reported by the ministry.
Both leaders have reached a consensus to mutually support one another in hosting the Asia-Pacific Economic Cooperation leaders’ meeting and the Group of Twenty summit, each indicating their intention to participate in the events organised by the other. On foreign policy, the leaders concurred that Iran must adhere to its obligations regarding the non-development of nuclear weapons, and that no nation or entity should levy transit tolls on international waterways, according to the ministry. It is noteworthy that during World War Two, China and the United States collaborated as allies.
