Xi, Trump Extend US-China Trade Truce by Two Months, Choose Management Over Confrontation

Xi, Trump extend truce amid strategic rivalry

Trade compromise, but Taiwan and semiconductors remain deadlocked

Chinese President Xi Jinping and US President Donald Trump agreed at a summit in Washington to extend the US-China trade truce by two months. But the meeting ended without a clear breakthrough on Taiwan, artificial intelligence and advanced semiconductors.

The two sides put in place a minimal safeguard to avoid a direct clash. Even so, the outcome amounted to a small deal focused on managing current tensions rather than a broader bargain that could reshape US-China strategic competition.

US-China trade truce extended through Jan. 10

Statements from China’s Foreign Ministry and the US government on Sept. 26 showed the two leaders met at the White House on Sept. 24 and discussed trade, AI, Taiwan, the war in Ukraine, the Middle East and the Korean Peninsula.

Xi’s trip marked his first US state visit in 11 years. Trump called the meeting highly productive for both countries. Xi said the two nations’ economic and trade negotiating teams had recently reached a new joint agreement.

The most concrete outcome came in trade. The two countries agreed to extend their existing trade truce, which had been due to expire on Nov. 10, by two months through Jan. 10, 2027.

The move also increased the likelihood they will flesh out what is known as a trade committee framework to lower tariffs on goods not directly tied to national security.

US Trade Representative Jamieson Greer said the two sides had reached a partial agreement on managed trade and would disclose the specific product categories and terms on Sept. 28. Agricultural products, medical devices and consumer goods were among the items under discussion.

Still, there was no sign of progress on export controls for advanced AI semiconductors, a central front in the US-China technology rivalry. Greer said restrictions on advanced semiconductor exports to China were barely discussed in the latest trade talks.

China’s Foreign Ministry also announced that the two countries agreed to expand dialogue and cooperation in AI. It did not disclose any details on easing US restrictions on advanced semiconductor exports to China. That leaves strategic competition over core technologies intact even as some trade frictions are shifted into a more manageable channel.

Taiwan and AI chips remain unresolved

Xi made Taiwan a central issue at the meeting. China’s Foreign Ministry said Xi told Trump that the US should maintain what Beijing called the correct position of opposing Taiwan independence and handle the Taiwan issue prudently.

China described that stance as the foundation for strategic cooperation and the development of bilateral ties. In its summary of the summit, the White House did not disclose any specific remarks by Trump on Taiwan or any separate agreement on the issue.

Throughout the visit, Xi stressed what he called a constructive and strategically stable relationship. China framed that as a new principle for managing ties that the two leaders presented during Trump’s trip to China in May.

Xi said cooperation should remain at the center, competition should be kept within appropriate limits and differences should be managed. Trump also said at the summit that the two countries should keep economic and trade talks going to produce a better agreement.

The two sides also agreed to maintain leader-level communication. Xi and Trump are set to meet again at the Asia-Pacific Economic Cooperation summit in Shenzhen in November and at the Group of 20 summit in Miami in December. China’s Foreign Ministry said the two leaders also agreed to support each other’s hosting of APEC and the G20.

The summit produced no sweeping agreement capable of resolving structural tensions over Taiwan and advanced technology. Instead, it established mechanisms to reduce the risk of conflict over tariffs and non-sensitive goods while preserving a direct channel between the two leaders.

Experts said the two countries appear to be building a framework for managing ties in which they expand limited deals in the economic sphere while continuing to compete on security and advanced technology.

Kim Eun-jung, Beijing correspondent, Korea Economic Daily, kej@hankyung.com