Key Points
- US and China extend trade truce as leaders seek to prevent renewed tariff escalation
- Xi calls for partnership, strategic stability and expanded cooperation between the two countries
- Trade, artificial intelligence, critical minerals and Iran are expected to feature in talks
ISLAMABAD: The United States and China have agreed to extend their trade truce until January 10, 2027, as President Donald Trump welcomed Chinese President Xi Jinping to Washington for talks aimed at stabilising relations between the world’s two largest economies.
Xi arrived at Joint Base Andrews on Wednesday for his first White House visit in more than a decade. Trump and First Lady Melania Trump greeted Xi and his wife, Peng Liyuan, at the military base in a rare planeside welcome, followed by a formal arrival ceremony.
The White House had announced that Xi would be honoured with a state arrival ceremony and state dinner during his three-day visit.
READ ALSO: Chinese President Xi Heads to US for Talks with Trump: State Media
The high-profile welcome was accompanied by a more cautious diplomatic message from Beijing. In a post-arrival statement, President Xi said China and the United States should be “partners, not rivals” and that their respective national development goals could complement each other and benefit the world.
Xi said the two countries should work in the same direction to build a stable relationship in which cooperation remains central, competition is moderate, differences are manageable, and peace remains possible.
He said the historical basis for peaceful coexistence between China and the United States had not changed.
The emphasis reflects Beijing’s stated approach of seeking dialogue and cooperation while managing disagreements rather than allowing competition to dominate the relationship.
According to China’s Foreign Ministry, the visit should strengthen strategic stability, expand exchanges and cooperation and manage differences.
Trade tops Xi-Trump summit
Trade is expected to remain at the centre of the summit.
US Treasury Secretary Scott Bessent said Washington and Beijing had agreed to extend their existing trade truce until Jan 10.
The trade extension would prevent the return to the tariff escalation that had pushed duties on goods between the two countries above 100 per cent.
The extension gives negotiators time to work towards a wider economic understanding.
The two sides are also expected to discuss artificial intelligence, critical minerals, technology controls and other economic issues.
Washington wants more safeguards around advanced technology and supply chains. At the same time, Beijing has opposed what it describes as efforts to restrict China’s technological development.
The countries have nevertheless begun discussing a mechanism for communicating about artificial intelligence-related incidents.
Critical minerals are another important issue because China remains a major supplier of rare-earth materials used in industries ranging from electric vehicles and electronics to defence equipment.
The issue has become part of the overall negotiations over technology and industrial supply chains.
Regional security will add another layer to the talks.
Trump has said Iran will be discussed, while Washington has sought Chinese influence over Tehran as the Iran war continues.
Beijing, meanwhile, has maintained economic ties with Iran and is unlikely to abandon its position on national sovereignty and non-interference.
The summit is therefore not expected to resolve the strategic differences between Washington and Beijing.
Instead, the immediate objective appears to be keeping competition within manageable limits while preserving trade and diplomatic channels.
For Xi, the visit provides an opportunity to reinforce China’s call for a stable relationship based on cooperation and peaceful coexistence.
For Trump, an extended trade truce and limited economic agreements could provide tangible results from a summit otherwise dominated by symbolism.
