China’s Secret Talks with U.S. on AI Could Unlock Major Trade Truce—What’s Next?

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China, U.S. Engage in First AI Trade Talks Amid Tariff Discussions

⚡ Quick Read (30-Sec Summary):

  • China’s Commerce Ministry confirms first AI trade talks with the U.S.
  • Officials discussed reducing tariffs and extending previous trade agreements.
  • Concerns over AI risks prompt ongoing discussions between Xi and Trump.

BEIJING—On Thursday, China’s Commerce Ministry announced that senior trade negotiators from China and the United States conducted their inaugural discussions focused on artificial intelligence (AI). Spokesperson He Yadong indicated that, in addition to AI, the dialogue included plans to reduce tariffs and extend previously agreed-upon trade arrangements from October during a meeting in Kuala Lumpur.

These remarks followed a meeting between China’s Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent in New York, aimed at setting the stage for an upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping.

As Xi arrived in the U.S., Bessent revealed to Fox News on Wednesday that both countries had agreed to extend a trade truce until January. Established in October 2025, the truce aimed to keep tariffs lower and restrict China’s export controls on rare earths, vital for semiconductors and various consumer goods, including defense products.

Earlier in the week, Bessent stated that the discussions encompassed the establishment of an AI dialogue and a framework for informing each other of potential AI-related risks. The confirmation of these AI-related talks coincided with the scheduled discussions between Xi and Trump in Washington, D.C., during Xi’s state visit.

The Commerce Ministry characterized the talks as constructive and candid, highlighting numerous points of consensus reached by both sides. Notably, both nations are grappling with the implications of rapidly advancing technology, particularly in light of recent AI incidents that have raised fears regarding the increased speed and difficulty of controlling potential attacks involving autonomous systems.

News Courtesy of CNBC

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