US Treasury Secretary Bessent says the US and China will initially identify USD 30bln of non-critical goods that can have reduced or have no tariffs under the Board of Trade protocol, Reuters reports

AI:

• Within the next four to eight weeks, US-China consultations on AI guardrails to prevent the proliferation of powerful models are likely to start.

Meetings:

• Bessent will meet Chinese Vice Premier He Lifeng before President Xi's September visit to the White House to work out more details on trade arrangements.

Trade:

• China understands that Section 301 trade investigations could bring US tariffs back to levels, before the Supreme Court's decision.
• The US-China Board of Investment protocol will seek to identify deals that would not need CFIUS national security reviews, or investments that the US is not ready to consider.
• New Section 301 tariffs will not be a problem for China as long as they do not exceed prior levels agreed last November.
• The US-China truce on critical minerals and tariff rates could be prolonged through further meetings this year.
• The Trump administration is in no rush to extend the China trade truce, which is set to expire in November.