Chinese President Xi Jinping holds small-group exchanges with US President Donald Trump in the Oval Office after a welcome ceremony at the White House in Washington, D.C., the United States, Sept. 24, 2026. Trump held a welcome ceremony for Xi, who is on a state visit to the United States, at the White House on Thursday. (Xinhua/Xie Huanchi)
China and the United States have agreed on a new framework to manage their rivalry, agreeing on eight outcomes.
President Xi Jinping and his US counterpart Donald Trump led the resolution aimed at stabilising relations between the world's two largest economies.
The agreements cover trade, artificial intelligence, counternarcotics, global economic cooperation and security.
The grand goal is to help reduce some of the uncertainty created by years of tensions between Beijing and Washington.
Part of the understanding is an agreement to build what the two countries described as a "constructive China-US relationship of strategic stability based on respect, fairness and reciprocity."
The two leaders reached the agreement during Xi's three-day state visit to the US, which ended on Friday.
The visit was closely watched because of the continuing competition between the two countries.
China and the United States interact a lot over trade, technology, and security.
The two also command a lot of influence in global affairs.
The latest understanding seeks to keep those differences from turning into wider confrontation.
It is envisioned that the two sides will also open channels through which they can continue talking.
According to briefs following the meeting, the economic component is also hailed as significant.
Ahead of Xi's visit, Chinese and US economic and trade teams held their latest round of consultations in New York.
The two leaders endorsed the results of those talks and instructed their teams to implement the agreements reached.
These include the establishment and advancement of mechanisms such as a trade council and a Board of Investment.
A $30 billion reciprocal tariff reduction arrangement covering non-sensitive goods was also agreed upon.
The White House said the two sides had reached consensus on more favourable tariff treatment for $30 billion of non-sensitive goods in each direction.
The agreement also provides for a working group on agricultural market access.
China and the US appear to be shunning repeated tariff confrontations in favour of a structured system for managing economic disagreements.
Businesses and economies that depend on global supply chains stand to benefit.
As such, the significance of the talks goes beyond the two countries.
China and the US are major players in global trade, manufacturing, technology and finance.
Prolonged confrontation between them can affect markets and supply chains to a great extent.
The two leaders also agreed to support each other as hosts of major international economic meetings next year.
China will host the APEC Economic Leaders' Meeting in November 2026, while the US will host the G20 Leaders' Summit in December.
Xi and Trump expressed their intention to attend each other's meetings.
The two countries also opened a new area of cooperation around artificial intelligence.
AI is emerging as one of the most sensitive areas of their technological competition.
The leaders have in this respect agreed to establish a China-US AI dialogue.
It is to provide a platform to exchange views on the risks and benefits associated with AI.
The next round of discussions is expected in November.
The two sides will also establish a communication channel for AI-related incidents.
The agreement comes as both countries compete aggressively over advanced technology and AI prowess.
As the US seeks to strengthen its AI capacity, China has in the side been investing heavily in developing its own AI capacity.
To manage the competition, the leaders agreed to create a mechanism for the two sides to discuss risks and incidents that could have adverse consequences.
The two countries also agreed to deepen cooperation in counternarcotics enforcement.
According to the Chinese readout, Chinese and US law enforcement agencies have recently worked together on cases involving new psychoactive substances and precursor chemicals.
Dozens of suspects were arrested in the two countries following the cooperation.
The agreement gives the cooperation an institutional basis.
On international security, Xi and Trump agreed that Iran should fulfil its commitment not to develop nuclear weapons.
They also agreed that no country or institution should charge transit fees for passage through international waterways.
The two leaders further directed their militaries to sign a memorandum of understanding as soon as possible on strengthening crisis communication and preventing conflicts.
The two sides will also continue cooperation in searching for the remains of US soldiers in China.
The two leaders also invoked an earlier period of cooperation, recalling that China and the US were allies during World War II, and fought alongside each other.
China's official readout said the two sides should pursue a relationship characterised by cooperation, manageable differences and peaceful coexistence. Xi said the future of China-US relations would require the two sides to strengthen communication and cooperate with sincerity.
Trump, meanwhile, described the visit as constructive and said the two sides had achieved positive outcomes that would benefit both countries.
The agreements do not remove the underlying competition between Beijing and Washington.
The White House said the two countries had also agreed to establish a Board of Investment to provide a structured channel for discussing investment opportunities.
In what speaks to the soft side of the thawing diplomatic ties, the US welcomed the upcoming arrival of two giant pandas leased by China to Zoo Atlanta.
The relations have long been dominated by tariffs, if not technology.
