Trump-Xi Summit: A Truce With Limits

Last week’s Trump–Xi summit in Washington produced an extension of the trade truce and commitments to further dialogue on trade and AI. The newly released tariff lists offer an early signal of the concrete impacts to expect. They identify roughly USD 30 billion of imports each way for proposed relief, covering Chinese household goods and toys alongside American agricultural products and medical equipment. China says over 90% would return to normal tariff rates (i.e., most-favored nation rates). Surgical robots and MRI systems on China’s list for import relief suggest that even some advanced technology has a place in the “non-sensitive” trade both governments want to preserve.

Yet China hawks on Capitol Hill remain wary of Trump’s warmth towards Beijing. Senator Roger Wicker (R-MS) criticized Xi’s lavish reception, while House China Committee chair John Moolenaar (R-MI) praised Trump for withholding major concessions on AI and Taiwan. Their reactions suggest that support for the Trump Administration’s diplomacy toward China remains conditional on preserving America’s strategic advantage.

The Board of Trade’s deputies will meet at least quarterly, providing a standing channel for economic engagement. Separately, Treasury Secretary Scott Bessent and Vice Premier He Lifeng will lead AI talks, with another meeting due by November’s end. These mechanisms should help stabilize commercial conditions. But with export controls on both rare earths and semiconductors missing from any announced outcomes, companies still need to tread the line of U.S.-China strategic competition carefully.