U.S.-China Extend Trade Truce by Only Two Months... Summit Reveals Differences Over Key Issues

The United States and China confirmed their commitment to building a "constructive strategic stability relationship" at a summit held in Washington, D.C., from the 23rd to the 25th (local time), their first in four months. They reached agreements on issues including free passage through the Strait of Hormuz, the war involving Iran, trade and drugs.
However, the two sides exposed differences over key issues, including the duration of the trade war truce, rare-earth supplies and Taiwan, while agreeing to manage their conflicts. As a result, they confirmed the outcomes through separate announcements rather than a joint statement. The two sides plan to discuss these key issues in follow-up talks at the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen, China, in November and the Group of Twenty (G20) summit in Miami, the United States, in December.
At the summit, the two countries confirmed that they had agreed that "Iran must duly honor its commitment not to develop nuclear weapons, and that no country or institution should impose transit fees on international waterways."
On trade, both sides highlighted the operation of trade and investment committees, mutually equivalent tariff reductions worth $30 billion (approximately 40.8 trillion won), and the extension of the "tariff war" truce as achievements. On the 23rd, U.S. Treasury Secretary Scott Bessent announced that the United States and China had agreed to extend their "trade truce," which expires in November, by two months.
The two countries also agreed to exchange views on the risks and benefits of artificial intelligence (AI) through an AI dialogue, hold the next AI dialogue in November, and establish a communication channel for future AI-related incidents.
Regarding rare earths and other critical minerals, the White House said, "We are continuing consultations to address U.S. concerns over supply-chain shortages. The goal is to restore supply to an appropriate level." However, China did not mention the rare-earth issue in its statement. The White House explained that "the two leaders discussed international issues, including Russia and North Korea," but China did not mention those discussions.
[email protected] Lee Seok-woo, International Affairs Specialist Reporter