China, US Discuss AI, Investment as Trade Talks Continue

• US and China are discussing extending their trade truce, with talks continuing ahead of President Xi Jinping's US visit.
• The US is reportedly looking for a 3-6 month extension to maintain leverage and ensure China's compliance on agricultural purchases and rare earth export licenses.
• China, conversely, would prefer a 2-year extension to provide a longer runway and more certainty for businesses.

US and Chinese officials are continuing trade talks, focusing on a potential extension of the current trade truce. While the mood is broadly positive, significant tensions remain, particularly regarding the duration of the extension. The US seeks a shorter extension (3-6 months) for leverage, while China prefers a longer one (2 years) for certainty.