US and China extend trade truce as Trump welcomes Xi Jinping to Washington

US President Donald Trump extended a trade truce with China during a high-stakes state visit by Chinese President Xi Jinping, who arrived in Washington on September 23, 2026, for a three-day summit. The agreement, known as the "Busan Agreement," was initially set to expire in November but will now last until January 10, 2027, according to US Treasury Secretary Scott Bessent. The extension follows weeks of negotiations and aims to ease economic tensions between the world’s two largest economies.

Elaborate Welcome Ceremony Highlights State Visit

Trump personally greeted Xi at Joint Base Andrews, the first time a US president has met a foreign leader at the military facility in 11 years. The ceremony featured a 100-foot red carpet, a 21-gun salute, and a flyover by two B-1 Lancer bombers, which startled Trump but left Xi composed. Six F-22 and F-16 fighter jets were also on display, while a military band played the national anthems of both countries. The event underscored the significance of Xi’s visit, which marks his first state visit to the US in over a decade.

Trump praised the welcome, calling it a "great greeting" and noting the "most beautiful helipad ever built." He also announced that the "entire tech world" would attend a state dinner for Xi, though no specific companies were named. The White House schedule included a formal arrival ceremony, military reviews, and a state dinner at the White House, with private bilateral and expanded meetings between the leaders.

Trade, AI, and Geopolitical Tensions Dominate Agenda

The summit focused on multiple contentious issues, including trade, artificial intelligence (AI), and the US-Iran conflict. The trade truce extension allows both nations more time to negotiate tariffs, agricultural purchases, and industrial exports. However, disagreements persist over Chinese restrictions on critical minerals like rare earths, which are vital for electronics and advanced technologies. US officials have criticized Beijing for not fully restoring deliveries promised under earlier agreements, while China emphasizes its role in maintaining global supply chains.

AI competition is another key topic. US and Chinese officials have discussed establishing a communication channel for AI-related matters, though a formal agreement on oversight is not expected. The two nations are also vying for leadership in AI development, with concerns about risks posed by rapidly advancing systems. Meanwhile, the Iran war remains a focal point, as Trump confirmed that discussions with Xi would include the conflict. China’s economic ties with Iran, including oil purchases, have drawn scrutiny from Washington, which seeks to pressure Tehran through sanctions and military measures.

Taiwan, a sensitive issue in US-China relations, is also expected to be addressed. Beijing views the self-governing island as a "breakaway province" and has warned against US arms sales to Taipei. Trump’s administration has been reluctant to advance a $14 billion arms package approved by Congress, a move Beijing would likely oppose. Human rights advocates have also urged Trump to raise concerns about China’s treatment of marginalized communities, though Beijing has dismissed such issues as "interference in internal affairs."

State Visit Features Ceremonial Pageantry and Limited Expectations for Breakthroughs

Despite the elaborate ceremonies, experts suggest major policy breakthroughs are unlikely. Jonathan Czin of the Brookings Institution noted that while the truce extension is significant, "I think there will be some extension of the gentleman’s agreement." The visit includes a tea meeting, a visit to the National Archives, and a state dinner featuring US tech industry leaders, but no concrete agreements are expected beyond the trade truce.

Xi’s delegation included senior officials like Foreign Minister Wang Yi, though Chinese corporate executives were notably absent, unlike the White House’s planned tech industry attendance. The visit also coincides with ongoing diplomatic efforts to resolve the Iran conflict, with US special envoy Steve Witkoff describing recent talks as "constructive." However, significant differences remain between Washington and Tehran, particularly over the Strait of Hormuz, a critical route for global energy supplies.

The visit concludes on September 25, with Xi scheduled to depart after a final day of engagements. While the truce extension and ceremonial events highlight efforts to stabilize US-China relations, unresolved issues such as Taiwan, AI competition, and the Iran conflict remain central to the broader diplomatic challenge. The next major development will likely come from the outcome of the leaders’ private bilateral talks, which are expected to shape the trajectory of their economic and strategic relationship.