Xi Arrives in Washington and the Trade Truce Is Extended Before the Talks Begin
The US treasury secretary said Washington and Beijing have agreed to extend their trade truce as Xi Jinping began a multi-day state visit. AI supremacy is on the agenda alongside trade.
Fact.et Staff
Editorial · September 24, 2026

Xi Jinping began a multi-day visit to Washington on Thursday to a red-carpet welcome and a flyover by two B-1 bombers. Before the substantive talks began, the US treasury secretary said the two countries had agreed to extend their trade truce, the BBC reported.
The agenda runs from trade to artificial intelligence, with both governments competing for AI supremacy while saying they want the technology kept under human control.
An extension is not a settlement
A truce extended on the morning of a summit is a signal that neither side wants the summit to fail, which is a lower bar than either side wanting an agreement. Tariff schedules that expire and are renewed have become the operating mode of the relationship rather than an interruption to it.
For a country that buys from one of these economies and sells to both, the renewal matters more than the headline. Ethiopian importers price Chinese goods against a tariff wall they do not pay but do absorb, through the shipping rates, the input costs and the manufacturing decisions of the firms they buy from. Every extension holds those inputs still for another period; every lapse moves them.
What the AI framing changes
The novel element is that AI now sits at the same table as soybeans and semiconductors. That is a change in what a trade negotiation is about: compute, model weights and chip export controls are being traded against agricultural access and market entry.
African governments negotiating technology partnerships with either capital should read the pairing carefully. When AI capability becomes a bargaining chip between Washington and Beijing, the terms offered to third countries move with the state of that bargain rather than with the merits of any individual deal.
Open
No detail of the extended truce has been published — neither its duration nor which tariff lines it covers. Nothing has been announced on export controls, and there is no indication whether the visit will produce a written agreement or a communiqué.
Sources: BBC News, 24 September 2026, BBC News, 24 September 2026, BBC News, 23 September 2026
About Fact.et Staff
Reporting on Ethiopian business, entrepreneurship and innovation.


Comments
No comments yet — be the first.