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China and the United States have reached consensus on several economic and trade issues following their latest round of consultations in New York, according to China’s Ministry of Commerce. The discussions covered reciprocal tariff reductions, trade and investment mechanisms, and extending earlier arrangements between the two countries.
The two sides also held their first dialogue on artificial intelligence under the bilateral economic and trade consultation framework. The developments come as Beijing and Washington seek to manage trade tensions while opening channels for discussion on emerging technologies.
A key part of the discussions involves a proposed reciprocal tariff reduction covering USD 30 billion worth of goods on each side. China’s commerce ministry had previously said the two countries were working towards an arrangement covering products of equivalent value.
The framework aims to lower tariffs on selected goods and support trade between the world’s two largest economies. Specific products and implementation details remain subject to negotiation, meaning the announcement does not represent an immediate, across-the-board reduction in tariffs. China’s Ministry of Commerce said in its latest update that it would share further progress in due course.
The latest talks also covered implementing existing agreements and creating trade and investment councils intended to provide a regular mechanism for addressing economic concerns.
Alongside trade discussions, Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent, who lead their respective economic teams, held the first AI dialogue under the economic and trade consultation mechanism.
AI has become an increasingly important part of the broader China-US relationship, given the two countries’ competition in advanced technology and concerns about the governance and risks of increasingly capable AI systems.
The two governments had already agreed in May to establish an intergovernmental dialogue on AI. Their earlier discussions included technological risks and global AI governance.
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Despite the latest areas of agreement, several sensitive issues remain on the bilateral agenda. China and the US continue to negotiate over tariffs, trade barriers and other economic concerns, while earlier arrangements are being extended or reviewed.
The latest consensus therefore represents another step in managing the relationship rather than a broader resolution of all outstanding disputes. Both sides are expected to continue discussions through their existing consultation mechanisms.
For businesses, the proposed tariff reductions could eventually provide greater clarity on selected product categories if the framework moves into implementation. At the same time, the launch of a formal AI dialogue gives Beijing and Washington another channel to discuss the technology's risks, governance, and wider implications.
