U.S.–China Relations After the Trump–Xi Summit: Key Legal Considerations for Cross-Border Businesses

DeHeng New York Client Alert | September 2026

President Donald J. Trump and President Xi Jinping met in Washington, D.C. during President Xi's September 23–25, 2026 state visit to the United States. The meetings produced several economic and trade-related understandings, including further implementation of the U.S.–China Board of Trade and Board of Investment, recommendations concerning tariff treatment for approximately US$30 billion of non-sensitive goods in each direction, continued discussions concerning rare earths and critical minerals, and a new bilateral dialogue concerning artificial intelligence.[1][2]

These developments may create new commercial opportunities for companies operating between the United States and China. At the same time, businesses should distinguish between high-level bilateral understandings and legal or regulatory changes that have actually become effective under applicable domestic law.

In particular, the recent meetings do not, by themselves, eliminate existing U.S. requirements concerning tariffs and customs, foreign investment review, outbound investment, export controls, sanctions, or other sector-specific regulations. Companies considering transactions in reliance on the latest developments should therefore evaluate how the announced measures apply to their particular products, investments and business activities.

1. Potential Tariff Relief: Companies Should Review Product-Level Eligibility

One of the most commercially significant developments is the further implementation of the U.S.–China Board of Trade, a government-to-government mechanism established during President Trump's May 2026 visit to Beijing to address bilateral trade in non-sensitive goods.[3]

Following the September summit, the two sides announced recommendations concerning approximately US$30 billion of non-sensitive goods in each direction for potentially more favorable tariff treatment.[1][4]

According to the White House, the U.S. products identified include agricultural goods, fish and seafood, logs and wood products, cosmetics and medical devices. Chinese products identified for potential U.S. tariff treatment include certain consumer products such as small appliances, toys, holiday decorations and children's car seats.[1]

Importantly, businesses should not interpret the announcement as automatically changing the tariff applicable to every product identified by the Board of Trade.

The Board's September 27 working procedures state that the two countries will consider mutually agreed lists of goods totaling approximately US$30 billion on each side with a view toward providing reduced tariff treatment on a reciprocal basis, consistent with their respective domestic laws and processes.[5] USTR similarly characterized the lists as recommendations covering products that could receive more favorable tariff treatment in the future.[4]

Accordingly, before changing sourcing, pricing or customs practices in reliance on the announced framework, importers and exporters should confirm, among other matters:

• the applicable tariff classification;

• the effective date and implementing authority for any tariff adjustment;

• the country of origin of the merchandise;

• whether Section 301 or other additional duties continue to apply;

• whether an exclusion or exemption is available; and

• whether the transaction satisfies any conditions associated with preferential treatment.

Country-of-origin analysis can be particularly important. U.S. Customs and Border Protection has applied the substantial-transformation framework in determining country of origin for purposes of Section 301 trade remedies, and such determinations may depend on the specific manufacturing and processing facts involved.[6]

The new framework may therefore present opportunities for businesses engaged in U.S.–China trade, but those opportunities should be evaluated on a product-by-product basis rather than assumed to apply generally.

2. Cross-Border Investment May Receive Greater Attention, but Regulatory Review Remains Critical

The two governments have also established a U.S.–China Board of Investment. According to the White House, the Board is intended to provide a structured government-to-government channel for discussing potential investment opportunities, investment-related impediments and other commercially significant investment issues.[1][3]

This development may facilitate greater dialogue regarding bilateral investment. It should not, however, be interpreted as eliminating existing regulatory review applicable to particular transactions.

For Chinese companies investing in the United States, the Committee on Foreign Investment in the United States ("CFIUS") remains an important consideration.

CFIUS is an interagency committee chaired by the U.S. Department of the Treasury that reviews certain foreign investment transactions involving U.S. businesses and certain U.S. real estate transactions for potential national-security risks.[7] Treasury reported that CFIUS reviewed 347 notices and declarations involving covered transactions or covered real estate transactions during 2025 and continues to focus on compliance with mandatory filing requirements, including in transactions involving critical technology, critical infrastructure and sensitive personal data.[8]

Accordingly, Chinese companies considering U.S. acquisitions, minority investments, joint ventures or other transactions should consider at an early stage whether the contemplated transaction may fall within CFIUS jurisdiction or otherwise raise U.S. national-security concerns.

Depending on the transaction and industry, additional issues may include:

• U.S. sanctions and restricted-party requirements;

• federal or state foreign-investment restrictions;

• sector-specific licensing requirements;

• technology-transfer restrictions;

• sensitive personal-data considerations; and

• regulatory requirements applicable to industries such as telecommunications, infrastructure, energy and advanced technology.

Early regulatory analysis can be particularly important in transactions involving sensitive technologies or data because regulatory issues may affect transaction structure, due-diligence scope, representations and warranties, closing conditions and transaction timing.

3. U.S. Outbound Investment Restrictions Also Remain Relevant

U.S. companies and investors considering certain investments involving China should separately consider the U.S. Outbound Investment Security Program.

Under the current Treasury framework, the People's Republic of China, including Hong Kong and Macau, is identified as a "country of concern." The program addresses certain transactions involving three categories of national-security technologies and products: semiconductors and microelectronics, quantum information technologies, and artificial intelligence.[9]

Depending on the particular technology and transaction, the applicable rules may impose notification requirements or prohibit certain investments altogether.[9]

Accordingly, U.S. investors considering equity investments, joint ventures and certain other transactions involving Chinese technology businesses should determine whether outbound-investment rules apply before completing the transaction.

The establishment of the new bilateral Board of Investment should therefore be viewed alongside, rather than as a replacement for, existing inbound and outbound investment-security regimes.

4. Export Controls and Technology Transactions Remain a Core Compliance Issue

The September summit did not announce a general removal of U.S. export-control restrictions involving China.

Companies engaged in semiconductors, advanced computing, artificial intelligence, telecommunications, aerospace and other technology-intensive sectors should therefore continue to evaluate applicable requirements under the U.S. Export Administration Regulations ("EAR").

Part 744 of the EAR contains restrictions based on end users and end uses, including controls involving China applicable to certain military end users, military-intelligence end uses, supercomputers, advanced-node integrated circuits, semiconductor manufacturing equipment and advanced computing items.[10]

This means that export-control diligence frequently requires analysis extending beyond the identity of the immediate contractual counterparty.

Depending on the transaction, companies may need to understand:

• the classification and technical characteristics of the relevant product, software or technology;

• the ultimate destination;

• the ultimate end user;

• the intended end use;

• ownership and control of transaction counterparties;

• whether restricted parties are involved;

• whether controlled technology or technical data will be accessible to foreign personnel; and

• whether remote access, cloud services or technical support could implicate U.S. export-control requirements.

For technology transactions in particular, regulatory diligence should therefore be incorporated into transaction planning and contractual documentation rather than addressed only after execution.

5. Artificial Intelligence Is Emerging as a New Area of Bilateral Dialogue

Artificial intelligence was also specifically addressed during the September meetings.

According to China's Ministry of Foreign Affairs, the two governments agreed to establish a China–U.S. AI Dialogue to exchange views concerning AI-related risks and benefits, with another exchange contemplated for November 2026. The two sides also announced their intention to establish a bilateral communication channel for AI-related incidents.[2]

The White House likewise reported the establishment of a bilateral dialogue concerning emerging AI technologies and a communication channel concerning related incidents.[1]

The establishment of these mechanisms is significant because AI increasingly intersects with a range of legal and regulatory issues affecting cross-border businesses, including:

• export controls;

• semiconductor and computing restrictions;

• cybersecurity;

• data governance;

• intellectual property;

• technology licensing;

• national-security review; and

• cross-border research and development.

Companies should nevertheless distinguish between diplomatic dialogue concerning AI and the legal requirements presently governing particular technologies and transactions. Existing export-control, investment-security, data and other regulatory requirements should continue to be analyzed independently.

6. Rare Earths and Critical Minerals Remain a Supply-Chain Issue

Rare earths and critical minerals continue to feature prominently in U.S.–China economic discussions.

The White House stated following the September summit that the two governments continue to address U.S. concerns regarding supply-chain shortages involving rare earths and other critical minerals, with the stated objective of returning shipment levels to appropriate levels.[1]

The issue predates the September meeting. Following the May 2026 U.S.–China summit, the White House specifically identified U.S. concerns involving critical minerals such as yttrium, scandium, neodymium and indium, as well as restrictions involving certain rare-earth production and processing equipment and technologies.[3]

For manufacturers, technology companies, energy businesses and other companies dependent on China-related critical-mineral supply chains, these developments warrant continued attention.

Businesses may also wish to review supply and manufacturing agreements to determine how those agreements allocate risks associated with:

• export-license delays;

• tariffs and customs duties;

• governmental restrictions;

• supply shortages;

• alternative sourcing;

• minimum-purchase commitments;

• price adjustments;

• changes in law;

• force majeure; and

• termination rights.

For many companies, supply-chain diversification and contractual risk allocation are therefore increasingly connected legal and commercial considerations.

7. Existing Contracts Should Be Reviewed Against a Changing Trade Environment

The recent developments also provide an opportunity for companies engaged in U.S.–China business to review commercial agreements negotiated under earlier tariff and regulatory conditions.

Cross-border agreements may not clearly address responsibility for newly imposed tariffs, export restrictions, licensing delays or changes in applicable law.

Companies entering into new agreements—or renegotiating existing agreements—may wish to consider expressly addressing several issues.

Tariffs and duties. Which party bears existing or newly imposed tariffs and other import charges?

Change in law. May pricing, sourcing or performance obligations be adjusted if applicable trade or regulatory requirements materially change?

Export-control compliance. Which party is responsible for classification, licensing, end-user diligence and regulatory approvals?

Sanctions and restricted parties. What representations, covenants and termination rights apply if a counterparty becomes restricted?

Supply interruption. What happens if governmental action delays or prevents performance?

Alternative sourcing. May a party change manufacturing locations or suppliers if trade restrictions affect the existing supply chain?

Dispute resolution. Where will disputes be resolved, what law governs, and how will any resulting judgment or arbitral award be enforced?

Careful drafting can reduce uncertainty when governmental policies or regulatory requirements change during the life of a commercial relationship.

8. What Businesses Should Consider Doing Now

The September 2026 developments suggest the possibility of greater commercial engagement between the United States and China in selected areas. At the same time, significant regulatory complexity remains.

Companies with material U.S.–China exposure should consider whether recent developments warrant a targeted review of their cross-border activities, particularly in the following areas:

Trade and Customs

Tariff classification, country of origin, Section 301 exposure, valuation, exclusions and implementation of potential new tariff treatment.

Investment and M&A

Transaction structuring, CFIUS analysis, outbound-investment restrictions and other regulatory approvals.

Technology and Export Controls

EAR classification, licensing, end-user and end-use diligence, technology transfers and restricted-party screening.

Corporate Transactions

Entity structuring, joint ventures, corporate governance, financing and investment documentation.

Commercial Contracts

Tariff allocation, regulatory-compliance provisions, supply-chain protections, change-in-law clauses and dispute-resolution mechanisms.

Capital Markets

U.S. securities-law compliance, exchange-listing considerations, cross-border restructuring and related regulatory requirements.

Disputes and Enforcement

Cross-border litigation, arbitration, jurisdiction, service of process, asset preservation and enforcement of judgments and arbitral awards.

How DeHeng New York Can Assist

DeHeng New York advises Chinese, U.S. and international companies on legal matters arising from cross-border business and investment between the United States and China.

Our team assists clients with:

• U.S. corporate and transactional matters;

• cross-border mergers, acquisitions and investments;

• U.S. capital-markets and securities matters;

• commercial contracts and corporate governance;

• regulatory and compliance analysis;

• legal due diligence;

• U.S. market-entry strategies; and

• cross-border litigation and dispute resolution.

The latest U.S.–China developments may create meaningful opportunities for businesses in both countries. At the same time, the legal consequences will depend on how individual measures are implemented and on the facts of each transaction.

Companies considering new investments, supply-chain changes, technology transactions, U.S. market entry or other cross-border activities should therefore evaluate potential commercial opportunities together with the applicable legal and regulatory requirements.

DeHeng New York will continue to monitor developments arising from the September 2026 U.S.–China summit and provide updates concerning significant legal and regulatory changes affecting cross-border businesses.

Endnotes

[1] The White House, Fact Sheet: President Donald J. Trump Advances a Fair and Reciprocal Relationship with China While Hosting Historic State Visit (Sept. 25, 2026), https://www.whitehouse.gov/fact-sheets/2026/09/fact-sheet-president-donald-j-trump-advances-a-fair-and-reciprocal-relationship-with-china-while-hosting-historic-state-visit/. The White House states that the two governments operationalized the U.S.–China Board of Trade and Board of Investment; reached consensus on recommendations concerning more favorable tariff treatment for approximately US$30 billion of non-sensitive goods in each direction; continued discussions concerning rare earths and other critical minerals; and established a bilateral dialogue concerning emerging AI technologies.

[2] Ministry of Foreign Affairs of the People's Republic of China, China and the United States Reach Eight Deliverables and Understandings (Sept. 26, 2026), https://www.mfa.gov.cn/eng/wjb/zzjg_663340/bmdyzs_664814/xwlb_664816/202609/t20260926_12031663.html. China's Ministry of Foreign Affairs describes the economic and trade outcomes, including the Board of Trade and a US$30 billion reciprocal tariff arrangement, and states that the two governments agreed to establish a China–U.S. AI Dialogue and a bilateral communication channel concerning AI incidents. See also Ministry of Foreign Affairs of the People's Republic of China, President Xi Jinping Holds Talks with U.S. President Donald J. Trump (Sept. 25, 2026), https://www.mfa.gov.cn/eng/xw/zyxw/202609/t20260925_12031181.html.

[3] The White House, Fact Sheet: President Donald J. Trump Secures Historic Deals with China, Delivering for American Workers, Farmers, and Industry (May 2026), https://www.whitehouse.gov/fact-sheets/2026/05/fact-sheet-president-donald-j-trump-secures-historic-deals-with-china-delivering-for-american-workers-farmers-and-industry/. The May announcement describes the establishment of the U.S.–China Boards of Trade and Investment and U.S. concerns regarding rare earths and critical minerals.

[4] Office of the United States Trade Representative, Ambassador Greer Issues a Statement on Announcement of Recommendations from the U.S.-China Board of Trade (Sept. 27, 2026), https://ustr.gov/about/policy-offices/press-office/press-releases/2026/september/ambassador-greer-issues-statement-announcement-recommendations-us-china-board-trade. USTR describes recommendations concerning approximately US$30 billion of non-sensitive goods on each side that "could benefit from more favorable tariff treatment in the future."

[5] The White House, U.S.-China Board of Trade (Sept. 27, 2026), https://www.whitehouse.gov/releases/2026/09/u-s-china-board-of-trade/; Working Procedures for the U.S.-China Board of Trade (Sept. 27, 2026), https://www.whitehouse.gov/wp-content/uploads/2026/09/US-China-Board-of-Trade-Working-Procedures.pdf. The published framework states that the United States and China will consider identified products with a view toward reciprocal reduced tariff treatment consistent with their respective domestic laws and processes.

[6] See, e.g., U.S. Customs & Border Protection, HQ H325607 (2025) (discussing substantial transformation in determining country of origin for purposes of Section 301 trade remedies), https://rulings.cbp.gov/api/getdoc/hq/2025/H325607.pdf. Country-of-origin and tariff treatment are fact-specific and should be evaluated based on applicable law and the particular merchandise and manufacturing process.

[7] U.S. Department of the Treasury, Treasury Unveils Redesigned CFIUS Website (July 2026), https://home.treasury.gov/news/press-releases/sb0580. Treasury describes CFIUS as an interagency committee chaired by Treasury that reviews certain foreign investment transactions in the United States to assess and address national-security risks.

[8] U.S. Department of the Treasury, Treasury Releases CFIUS Annual Report for 2025 (Aug. 2026), https://home.treasury.gov/news/press-releases/sb0599. Treasury reported 347 notices and declarations involving covered transactions or covered real estate transactions during 2025 and identified mandatory-filing compliance involving critical technology, critical infrastructure and sensitive personal data as an area of continued enforcement attention.

[9] U.S. Department of the Treasury, Outbound Investment Security Program, https://home.treasury.gov/policy-issues/international/outbound-investment-program (last visited Sept. 29, 2026). Treasury identifies the People's Republic of China, together with Hong Kong and Macau, as a country of concern and identifies semiconductors and microelectronics, quantum information technologies and artificial intelligence as the three categories of national-security technologies and products addressed by the program.

[10] U.S. Department of Commerce, Bureau of Industry and Security, Export Administration Regulations, Part 744—Control Policy: End-User and End-Use Based, 15 C.F.R. pt. 744, https://www.bis.gov/regulations/ear/744 (last visited Sept. 29, 2026). Part 744 contains, among other provisions, restrictions concerning specified military end users and end uses and certain supercomputer, advanced-node integrated circuit, semiconductor manufacturing equipment and advanced-computing activities.

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*Disclaimer

This publication has been prepared by DeHeng New York for informational purposes only and does not constitute, and should not be construed as, legal advice. The information contained herein is based on publicly available information as of September 29, 2026 and may be affected by subsequent legal, regulatory or policy developments. The application of law and regulation depends on the particular facts and circumstances of each matter. Readers should consult qualified legal counsel before taking action based on the matters discussed in this publication. This publication does not create an attorney-client relationship between DeHeng New York and any recipient.*