Trump-Xi summit analysis: 'Tangible outcomes' needed for U.S.-China truce to hold

China announced on September 28 that the two-month extension of a trade truce with the United States would provide an opportunity for both nations to assess the progress of their agreement to address economic and trade concerns while simultaneously working towards further advancements in those areas. The Commerce Ministry disclosed that the extension would also foster a stable and predictable policy environment conducive to corporate cooperation and ongoing discussions.

This extension was one of the primary outcomes of the second annual summit between President Xi Jinping and US President Donald Trump, which took place in Washington last week.

Under the new trade council established by both countries, the initial step involves negotiating a reciprocal tariff reduction on $30 billion worth of products to maintain stable economic and trade relations. This reduction would also facilitate the export of related Chinese goods to the United States, according to the ministry.

The economic and trade teams from both sides will engage in regular dialogues to identify potential investment opportunities, address barriers, enhance policy transparency, and respond to concerns raised by businesses. Additionally, an agriculture working group will be formed under the trade council, with its inaugural meeting scheduled before the end of the year to discuss market access and regulations for agricultural products.

The summit also resulted in a coal trade agreement, allowing China to import coal from the United States starting in 2027 and 2028. This collaboration provides a supplementary source of stable economic income and employment for the US coal industry. Both parties have agreed to establish a communication channel for addressing AI-related incidents and schedule a follow-up dialogue by the end of November.

Furthermore, China will evaluate and authorize foreign financial services institutions, including those with US capital, to operate in China. Continued communication on increasing flights between the two nations is also anticipated, as per the ministry's statement.