U.S.-China trade talks extend a limited trade truce for two months while persistent disputes continue over semiconductor exports and Taiwan.

Chinese President Xi Jinping departed the United States on September 25 following his state visit, having invited U.S. President Donald Trump to visit China again in November. The two leaders plan to meet in Shenzhen in November and Miami in December, following earlier meetings in Beijing in May and Washington this week. Despite Xi's direct engagement with Trump, the two countries' economic agreement was limited to carving out certain trade in non-sensitive items from broader tariff disputes. On the critical issues of semiconductors and Taiwan, both sides reaffirmed only their existing positions.

According to a Ministry of Foreign Affairs readout, Xi told Trump at the White House meeting on September 24: "It is unprecedented in the history of U.S.-China relations for the leaders of the two countries to visit each other within half a year." Trump echoed this sentiment at the state dinner that day, saying, "We've never gotten along better" between the United States and China. Chinese state media gave the summit prominent coverage, with the People's Daily running photos of the two leaders on its front page and devoting three full pages to the talks.

The next meeting is expected shortly after the U.S. midterm elections on November 3. Both leaders are scheduled to meet at the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen starting November 18, followed by the Group of 20 (G20) summit at Trump's Doral golf resort in Miami on December 14. China's readout included language committing both sides to support each other's hosting of these summits.

Harvard Kennedy School professor Rana Mitter told Bloomberg on September 25 that "this may be the peak of U.S.-China détente," but cautioned: "In terms of substantive policy change, we haven't yet reached the peak."

**Limited agreement on non-sensitive trade items**

In the talks, Xi said the two countries' economic teams had reached "a new joint arrangement" following renewed consultations, stating, "We should expand the list of cooperation and shrink the list of issues." Trump noted that "both sides should continue the dialogue and reach a better agreement." He Yadong, spokesperson for China's Ministry of Commerce, disclosed that Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent discussed mutual tariff cuts, establishment of a trade and investment committee, and extension of the current trade truce.

U.S. Trade Representative Jamieson Greer provided details on CNBC on September 25, citing U.S. agricultural products, medical devices, and Chinese consumer goods as examples of items that would be exempted from new tariffs regardless of future trade disputes. The specific items and scale of tariff cuts are to be released on September 28. According to Reuters, both sides are expected to select nonsensitive items worth approximately $30 billion each, totaling $60 billion—representing roughly 14 percent of last year's $415 billion in U.S.-China goods trade.

The "Busan agreement," which halted the escalating tariff war between the two countries, has been extended by two months, from November 10 to January 10, 2027. The two leaders had agreed in Busan on October 30 last year that China would postpone by one year its strengthened export controls on rare earths and increase purchases of U.S. soybeans in exchange for U.S. tariff reductions on Chinese goods. Barclays reported that the effective U.S. tariff rate on Chinese products remains approximately 23 percent, more than triple the average for other trading partners at around 7 percent. Bloomberg noted that the new extension period is roughly one-third of the six-month period that had been previously floated.

**No progress on advanced semiconductor exports**

At the state dinner on September 24, Xi sat at the same main table as Nvidia CEO Jensen Huang. Yet throughout the talks, there was no discussion of the AI chips China had sought. Xi made only a ceremonial remark that "both countries have strong AI capabilities" and that "the right path is not to guard against each other but to draw on each other's strengths." Notably, among roughly 130 dinner guests, no Chinese IT-sector corporate representatives were present. Bloomberg reported that the seating arrangement itself signaled U.S. intent to maintain semiconductor export controls.

According to Reuters, the U.S. government did not address advanced semiconductor sales in these negotiations. Greer told Reuters that "all export control items involving national security were taken off the table." Regarding advanced semiconductors specifically, he stated: "Chips are like the crown jewels and a means to lead in the race for superintelligence. There is virtually no discussion of semiconductors in these talks."

China remains unable to purchase Nvidia's top-tier AI chips—the Blackwell models—due to U.S. national security export restrictions. The United States currently permits only the pre-Blackwell H200 model to be sold to more than ten Chinese corporations, including Alibaba, Tencent, and ByteDance, with a limit of 75,000 units per corporation.

Jeremy Chan, senior analyst for China and Northeast Asia at the Eurasia Group, told CNBC on September 24: "Given that Xi brought up chip controls whenever he met former President Biden, it is notable that the issue is not coming up in the summit with President Trump."

**Taiwan: Xi seeks stronger U.S. language, Washington holds firm**

At the summit, Xi urged the United States to "maintain the correct position of opposing Taiwan independence and handle the Taiwan issue prudently." For decades, the U.S. has employed the phrase "do not support" Taiwan independence. Bloomberg reported this was the first time Xi publicly pressed Trump to adopt stronger language explicitly "opposing" independence.

Wu Xinbo, director of the Center for American Studies at Fudan University, told Bloomberg: "Xi wants a definite assurance that Trump will continue to handle the Taiwan issue prudently. China is watching whether Trump can continue to be prudent on Taiwan even after the midterm elections in November."

The White House issued no separate statement on Taiwan during the talks, and Trump declined to answer press questions on the subject. However, on September 25, U.S. Ambassador to China David Perdue told CNBC: "There is no change to Taiwan policy. We are not changing the wording or the position." He further told Fox News: "The United States does not support Taiwan independence, but it also does not support coercion."

**Divergence over Iran**

When asked by reporters on September 25 whether he had discussed the Iran war with Xi, Trump answered tersely, "We did." The Wall Street Journal had previously reported that satellite imagery supplied by a Chinese firm was used in Iran's attack on a U.S. base in Jordan earlier in the month, killing three American service members. CNN also reported on September 25 that Chinese information is assisting Iran in targeting attacks in the Strait of Hormuz.

Perdue told CNBC that Trump warned China it would be "totally unacceptable" to help Iran "whether it's information, parts, or military equipment, directly or indirectly." He stated on Fox News that "China promised yesterday not to provide such support."

Xinhua conveyed a different narrative, reporting that Xi emphasized China has "encouraged the relevant parties to adhere to a peaceful solution and sustain momentum for dialogue," characterizing this as a principled position. China maintains that the United States and Iran should reach a nuclear deal under the Islamabad memorandum of understanding agreed in June. As Iran's largest trading partner, China purchases more than 80 percent of Iran's seaborne crude oil exports.