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Trump-Xi Summit: What happened to AI and rare earths agreements? Buzz vs reality

Trump-Xi Summit: What happened to AI and rare earths agreements? Buzz vs reality

US President Donald Trump and visiting Chinese President Xi Jinping during their September summit Photograph: (Others)

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Trump-Xi summit produced an AI dialogue channel but no substantive pacts on rare earths or AI technology. Rare-earth shipments, export licensing, and semiconductor controls remained unresolved.

The recent summit of US President Donald Trump and visiting Chinese President Xi Jinping was widely watched as heralding cooperation on key areas like critical minerals and artificial intelligence. While the two nations agreed on new mechanisms for cooperation on artificial intelligence and trade, no substantive comprehensive pacts were signed. So what's the reality compared to the buzz?

No new supply deal on rare earths

China controls roughly 90 per cent of global rare-earth processing capacity. A fact sheet issued by the White House on September 25 said the two sides will continue to work on the US concerns over shortages of rare earths and other critical minerals, aimed at returning shipments to “appropriate levels”. There was no mention of specific supply targets or commitments to eliminate export licensing controls. An official readout from China also did not highlight rare earths.

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Chinese rare-earth exports to the US remained below historical levels ahead of the summit. The US had earlier raised concerns over China not fully meeting its prior commitments, with compliance estimated at around two-thirds. Chinese shipments of rare earth magnets to the US averaged about 504 tonnes a month in 2026, compared with 621 tonnes in 2024.

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AI dialogue continues, without a clear deal

The Trump-Xi summit did not produce a formal agreement on AI development, safety standards, semiconductor exports or technology transfers, in spite of widespread anticipation.

Perhaps the most significant outcome was a name change: from artificial intelligence to Super Intelligence, a term that the two leaders agreed to use for the relevant emerging technologies.

The two sides will establish a US-China Super Intelligence Dialogue to discuss the risks and benefits of emerging technologies, with the next exchange expected in November 2026. A bilateral communication channel for super-intelligence incidents will be established.

These arrangements came after the September 20–21 talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.

China, meanwhile, sought relief from US semiconductor controls affecting advanced AI models.

So, what was actually agreed upon?

There has been progress on some other aspects of the bilateral ties, particularly on trade. The US and China extended their trade truce to January 10, 2027. Under the Board of Trade, the two sides agreed on more favourable tariff treatment covering $30 billion of non-sensitive goods.

China agreed to import at least 10 million metric tonnes of US coal in 2027 and 2028.

In November 2025, China had committed to suspend expanded rare-earth export controls and issue general licences covering several critical minerals, and in May 2026, it committed to address US concerns over supply shortages of minerals like yttrium, scandium, neodymium and indium.

Shipment levels and licensing remain concerns for the US when it comes to rare earths. On AI, dialogue advanced, while semiconductor controls and technology transfers remained unresolved.

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Vinod Janardhanan

Vinod Janardhanan, PhD writes on international affairs, defence, Indian news, entertainment and technology and business with special focus on artificial intelligence. He is the de...Read More