China Confirms First AI Talks With U.S., Hints at Trade Truce Extension

China's Commerce Ministry confirmed on Thursday that its senior trade negotiators have held their first talks with the United States on artificial intelligence. The confirmation came hours before President Xi Jinping and U.S. President Donald Trump were scheduled to begin talks in Washington, D.C., as part of a state visit.

Commerce Ministry spokesperson He Yadong told reporters the two sides also discussed plans for reducing tariffs and extending trade arrangements agreed in Kuala Lumpur last October.

He Lifeng Met Bessent in New York

He Yadong was referring to China's Vice Premier He Lifeng meeting with his counterpart, Treasury Secretary Scott Bessent, in New York in the runup to this week's Trump-Xi summit.

As Xi landed in the U.S., Bessent told Fox News on Wednesday that the two countries agreed to extend a trade truce to January.

The truce, reached in October 2025, kept tariffs lower and limited China's export controls on rare earths. Those minerals are critical components of semiconductors and many household goods, as well as defence products.

Earlier in the week, Bessent said the two sides discussed establishing an AI dialogue and a mechanism to alert each other about AI risks.

Constructive Talks, Multiple Points of Consensus

The Chinese confirmation of the AI talks came just hours before Xi and Trump were scheduled to begin discussions. The ministry said the two sides held constructive, candid talks and reached multiple points of consensus.

Both countries are weighing how to address the risks posed by rapidly advancing technology. Recent incidents involving AI systems have raised fears that increasingly autonomous models could make attacks faster and harder to contain.

What It Means for Markets

Any extension of the tariff truce matters for Nigerian businesses that import machinery, electronics and industrial inputs from China, since lower tariffs feed into landed costs. The rare earths arrangement also touches global supply chains for semiconductors and household goods, where price swings often pass through to importers and consumers.

The AI dialogue adds a new layer to U.S.-China relations. For now, both sides are signalling engagement rather than escalation, and that tone will shape how trade and technology tensions play out into January.