The Xi summit produced paper, not just photos. The US and China have agreed to cut tariffs on $30 billion of goods in each direction and launch a formal dialogue on AI, under an eight-point consensus sealed during Xi Jinping's three-day state visit to Washington, which ended Friday. Both capitals confirmed the deal on Saturday, The Star reported.
The tariff cuts target "noncritical" goods for most-favored-nation treatment: US exports such as agricultural goods, wood and cosmetics, plus US imports including small appliances, toys and decorations. The idea was first floated at Trump's May summit in Beijing and was still being haggled over by Bessent and Greer in New York days before the handshake, The Hill reported.
Related reading: Bursa closes lower at 1,676; ringgit closes higher at 4.0743.
The AI chapter
Both sides agreed to periodic talks on AI risks and benefits, starting November, plus a dedicated communication channel for AI-related incidents. In a curious diplomatic flourish, both capitals agreed to say "super intelligence" instead of "artificial intelligence," a Trump coinage Beijing publicly praised, Yahoo reported. Trump meanwhile announced an "AI Force" and a coming AI czar at home.
Substance or theater, the channel matters: with AI chips at the center of export controls, a standing hotline beats trial by tariff.
Soldiers and trade councils
The package also includes a military crisis-communications understanding to prevent armed-forces confrontations, a new bilateral trade council, mutual support for hosting APEC and the G20, and an extension of the Kuala Lumpur round's outcomes. It all stacks onto Bessent's Wednesday move extending the broader trade truce from November 10 to January 10.
Wang Yi called the visit "historic," claiming it opened "a new chapter" with far-reaching impact on world peace. Xi has since landed back in Beijing.
What it means for Malaysia
Kuala Lumpur is literally in the text: the KL round's outcomes got extended, keeping Malaysia at the table of the world's most important trade negotiation. Bursa exporters and supply-chain counters get a sentiment tailwind for Monday, and any durable thaw supports the ringgit through trade-channel optimism. Watch for details on which agricultural lines get MFN treatment, as palm and rubber adjacent flows could benefit.
What to watch
- Monday open: Asia prices the consensus first; exporters lead
- Goods lists: the fine print decides who actually profits
- November AI talks: first test of the new channel
- January 10: the extended truce deadline for the bigger deal