China, U.S. agree to $30 billion tariff cut, launch AI dialogue

China and the United States have reached an agreement to reduce tariffs by $30 billion and initiate discussions on artificial intelligence during President Xi Jinping's visit to the U.S., according to Reuters citing China's foreign ministry. The eight-point consensus reached during Xi's meetings with U.S. President Donald Trump includes the endorsement of their economic teams' work and the establishment of a bilateral trade council.

Both sides also agreed to extend the existing trade truce by two months, providing more time for negotiations over a broader economic agreement.

The summit, which concluded after three days of discussions on trade, technology, and foreign policy, took place from November 10 to November 13. AI emerged as a key area of cooperation, with the two countries agreeing to establish a dialogue on the risks and benefits associated with AI. The next round of discussions is scheduled for November, and a communication channel for AI-related incidents will also be created, according to the Chinese foreign ministry.

The agreement comes amid ongoing competition between the two nations in AI technology, which is a significant area of economic rivalry alongside semiconductors and other advanced technologies. The two governments also agreed to support each other's hosting of major international gatherings, including the Asia-Pacific Economic Cooperation leaders' meeting and Group of Twenty summit.

Additionally, foreign policy was addressed, with the leaders agreeing on Iran's commitment to not develop nuclear weapons and the prohibition of transit tolls on international waterways.