U.S. and China Extend Trade Truce, Advance AI Dialogue Ahead of Trump-Xi Meeting
President Trump and President Xi are scheduled to meet, with updated expectations following recent developments in U.S.-China relations. Treasury Secretary Bessent and Vice Premier He Lifeng held preparatory talks in New York, resulting in an agreement to extend the Busan trade truce through January 10, 2027. This extension aims to reduce uncertainty and provide a framework for continued negotiations on trade, export controls, and technology policy. The two sides also formalized an ongoing U.S.-China AI dialogue, with discussions covering preliminary mechanisms for communicating about significant AI-related incidents. While progress has been made on the Board of Trade, with U.S. Trade Representative (USTR) Jamieson Greer declaring it 'operational' for certain goods, the Board of Investment remains stalled due to disagreements on structure. Additionally, Foreign Minister Wang Yi and Secretary Rubio discussed restarting military-to-military arms-control talks, suspended since 2024, concerning U.S. weapons sa...
