U.S. and China agreed to start a government-level AI dialogue after Trump and Xi discussed AI governance

The U.S. and China agreed to open a government-level channel on AI cooperation following the Trump–Xi summit, a development that could influence regulatory coordination and geopolitical risk around advanced AI technology. The meeting included discussion of AI guardrails, but leaders emphasized continuing competition. For markets, the outcome is mixed: potential dialogue could ease frictions and eventually reopen Chinese demand for U.S. semiconductors, but Beijing has not yet approved shipments. Nvidia (NVDA.OQ) still holds U.S. export licenses for its H200 chips but awaits Chinese permission to sell there. Meanwhile, U.S. senators plan a bill to create a State Department office and a $500 million fund to help allies buy American tech, a policy move that could bolster U.S. vendors while constraining Chinese competitors.