US and China agree on $30B tariff cut and AI hotline as Xi concludes Washington visit

Trade package and tariff truce

Following a three-day state visit to Washington by Chinese President Xi Jinping that concluded on Friday, the White House announced a mutual agreement to lower tariffs on $30 billion worth of non-sensitive trade. The concessions cover American exports of crops, timber, and medical equipment, while Chinese imports include consumer electronics, toys, decorative items, and child seats. Beijing also committed to purchasing 1 million tons of American coal, following an early September purchase of approximately 1 million tons of US soybeans toward its target of 25 million tons annually by 2028. An existing tariff truce between the two economies remains extended through 10 January 2027. Bilateral negotiations are set to continue ahead of two scheduled meetings between the leaders at the APEC summit in Shenzhen in November and the G20 summit in Miami in December.

Discussions on Taiwan and regional security

Speaking to reporters on Saturday before departing for a college football game in Tennessee, Donald Trump addressed discussions surrounding Taiwan, stating that the topic arose without dominating the bilateral agenda. Trump affirmed that the Chinese leadership understands the American posture, which has maintained strategic ambiguity while previously questioning Taiwan over semiconductor production. David Perdue, the US Ambassador to China, stated that Washington resisted Chinese pressure to alter its policy from not supporting Taiwan independence to actively opposing it. Under the 1979 Taiwan Relations Act, the United States remains obligated to supply defense equipment to Taipei, which continues to reject Beijing's sovereignty claims.

We hope the American side will adhere to the correct position opposing Taiwan independence, handle the issue prudently, and lay a solid foundation for strategic cooperation.

The discussions followed disclosures that Trump spoke with Xi regarding US weapons deliveries to Taiwan valued at more than $11 billion, an engagement that broke with assurances established in 1982 to avoid consulting Beijing on island defense sales.

Artificial intelligence and technical safeguards

Negotiations yielded an agreement to establish a direct communication hotline between Washington and Beijing specifically dedicated to handling artificial intelligence security incidents. The measure originated from preparatory meetings conducted by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, although Chinese state accounts initially omitted the proposal. Analytical assessments by Qiheng Chen of the Asia Society indicated persistent divergences in technological policy, as Beijing advocates strict human oversight while the US administration resists regulatory limits on technical development. Trump reiterated on Saturday that he opposes artificial intelligence constraints and noted that Xi responded positively to his characterization of the technology as superintelligence.

Broader diplomatic positions

During his weekend remarks, Trump outlined stances on several unrelated foreign policy dossiers following the conclusion of bilateral talks. He confirmed the rejection of a ceasefire proposal from Iran that would have reopened the Strait of Hormuz in exchange for the lifting of economic blockades and sanctions. Trump stated that Iran had outsmarted itself and was seeking relief after incurring heavy financial losses from the blockade. He also issued a call for Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin to conclude a peace settlement before the onset of winter conditions, while maintaining that a negotiated arrangement with Cuba will proceed without military intervention.