Trump-Xi Summit Ends With a Two-Month Trade Truce Extension and Few Other Announced Results

Chinese leader Xi Jinping arrived in Washington on Wednesday, Sept. 23, and flew home on Friday, Sept. 25, after a state visit that produced one hard number: two months.

Treasury Secretary Scott Bessent said the two countries agreed to extend their trade truce through Jan. 10. Both the truce and Beijing's suspension of rare earth export controls were due to lapse on Nov. 10.

A shorter extension than markets wanted

Analysts at UBS said in a sales note that the two-month extension was "shorter than market expectations" for a one-year rollover. They added that it still helps preserve stability in the relationship.

China's markets answered on Thursday, Sept. 24. The blue-chip CSI300 fell 1.7% and the Shanghai Composite lost 1.2%, both their biggest one-day drops in a month. Hong Kong's Hang Seng slipped 0.3%.

Reuters, citing sources, reported that Beijing had wanted to bring a delegation of Chinese business leaders to meet Trump and that none came. The selloff also mirrored overnight weakness on Wall Street, which had retreated on higher oil prices and rising Treasury yields.

Sanjeev Rana, head of north Asia semiconductors research at CLSA, said he does not expect the U.S. to relax chip export controls. Charles Wang, chairman of Shenzhen Dragon Pacific Capital Management, took the opposite view. "I think US-China relations are evolving from outright confrontation, toward mutual understanding, compromise and a framework of co-existence," he said.

AI channel, no new agreement

On AI, U.S. Trade Representative Jamieson Greer was blunt. Asked by CBS News whether the leaders achieved anything new, he said, "I wouldn't say anything new." He described the AI dialogue as a standing channel, comparable to the Cold War red phone between the Kremlin and the White House, for sharing risks if either side needs to.

Greer said another AI meeting would happen "in the next month or so." No agenda has been set.

Trump, asked about his meeting with Xi at the National Archives, said "everything" was accomplished. He did not elaborate. Over tea at the White House he said, "I think our farmers are going to be very happy," and offered no details on what farmers should expect.

Taiwan and the criticism at home

Trump ignored shouted questions on Taiwan during the visit. U.S. Ambassador to China David Perdue told CNBC on Friday that there is "no change in the Taiwan policy." He said the administration remains committed to the One China policy, the Taiwan Relations Act, the three communiques and the six assurances.

Sen. Roger Wicker (R-Miss.), chairman of the Senate Armed Services Committee, opposed the optics of the visit. On the Senate floor on Sept. 22, he called Xi "a brutal, unelected, and oppressive dictator." He cited China's support for Iran, religious persecution and international coercion. Wicker also said it was "all over the press" this summer that China gave Iran satellite imagery intelligence that led to the deaths of American troops. He objected to the lavish arrival ceremonies and urged Trump to ask Xi about China's military buildup.

Secretary of State Marco Rubio defended the engagement on Sept. 23. "The idea that we would not interact with them at the highest levels is irresponsible. It's outrageous. We have to," he told reporters in New York. He said that does not mean the sides lack strong disagreements, and pointed to U.S. contacts with Russian officials even at the height of the Cold War.

Other lawmakers pressed different issues. Sen. Bernie Moreno (R-Ohio) said Xi "knows he has a massive capacity problem." He noted that America makes about 10 million cars while China makes almost 38 million.

Lawmakers also pressed the detention of Americans in China. A Fox News op-ed by a member of Congress named Min Zin, an American scholar detained June 3 after being invited to an academic event. It also named Dr. Youlin Chen, who has spent more than 600 days in custody without trial or family access. The author also raised Hong Kong publisher Jimmy Lai, who is a British citizen. A senior U.S. official told reporters on Sept. 18 that Trump was expected to raise such cases, as he has in earlier meetings.

Pageantry

The state dinner on Thursday drew top U.S. tech executives, including Nvidia's Jensen Huang and Tesla CEO Elon Musk. On Friday, Xi and his wife, Peng Liyuan, toured the National Archives with the Trumps and saw the Declaration of Independence and the Constitution.

Through a translator, Xi said the visit was "done to the highest order of perfection" and that he and Trump are "like two people who are charting the course for the great ship of China-U.S. relations."

What comes next

Trump visited Beijing in May for a state visit, and the two leaders are expected to meet again at the APEC summit in Shenzhen later this year. A G20 meeting of leaders is expected at one of Trump's properties in Miami.

The nearer test is the truce. Bessent says it now runs through Jan. 10, and the follow-up AI talks Greer described are due around late October.