Talks to help stabilize trade relations with Washington

The preliminary outcomes achieved during the latest round of China-US economic and trade consultations will not only help stabilize bilateral economic ties, but also contribute to a more cooperative global economy at a time of rising uncertainties, officials and experts said.

The Ministry of Commerce announced on Wednesday that China and the United States have agreed in principle to discuss, under a trade council, a reciprocal tariff reduction framework on products of equivalent scale — worth $30 billion or more on each side.

Under the proposed arrangement, the products of respective concern as agreed by both sides are expected to enjoy most-favored-nation tariff rates or even lower rates, the ministry said.

Once implemented, the arrangement will not only help stabilize and expand bilateral trade between China and the US, but also serve as a useful reference for global open cooperation, a Commerce Ministry official said in a statement.

The ministry said that China and the US agreed to establish trade and investment councils to address respective concerns in trade and investment cooperation, a step that will help to shift bilateral economic and trade consultations from crisis response to mechanism-based management.

Dai Mingfeng, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said the move will help to create more favorable conditions for stabilizing bilateral trade.

"It will provide practical support for stabilizing and steadily expanding China-US bilateral trade, while helping to promote a recovery in trade involving agricultural and industrial products," Dai said.

To translate the arrangement into concrete progress, the ministry called on the US to honor its commitments and ensure that, regardless of the reason or form of any future additional or replacement tariffs on Chinese goods, US tariff levels on Chinese goods will not exceed those set under the joint arrangement reached during the Kuala Lumpur economic and trade consultations in October last year.

The two sides also agreed to expand two-way agricultural trade and resolve nontariff barriers and market access issues involving some agricultural products. For instance, the US pledged to address Chinese concerns including automatic detention measures targeting dairy and aquatic products, while China will advance solutions to US concerns regarding beef facility registration and poultry exports from certain US states to China, according to the ministry.

Noting that China is the world's most important agricultural market, the ministry official said that expanded US agricultural exports to China could help meet structural demand in the Chinese market, while China's vast consumer base could provide stable demand and income prospects for farmers in the US.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said the outcomes could play a positive role in improving market expectations.

Such progress will allow both sides to better leverage their strengths in agricultural trade, bringing tangible benefits to companies and the broader market, Zhou said.

The topics of the talks also included aviation, a sector that has long been part of China-US commercial ties. Based on its air transportation development needs, China will purchase 200 Boeing aircraft in accordance with commercial principles, while the US will ensure sufficient supplies of engines and related parts to China, the ministry said.

Zhang Yansheng, a senior economist, said: "China and the US are both too important to the world. When their relationship is good, the world benefits; when it is not, the world feels the shock."

Executives from US companies noted that greater stability in China-US economic relations is important for sustaining long-term cooperation and strengthening business confidence.

Michael Doogue, chief executive officer of the US semiconductor manu­facturer Allegro MicroSystems, said that China plays a dual role in the company's strategy — as both a major market and an increasingly important part of its global supply and innovation ecosystem.

"We will continue to invest in China by expanding research and development collaboration and optimizing our supply chain," he said.

On export controls related to rare earths and other critical minerals, both sides have had extensive communication and will jointly explore ways to address each other's legitimate and lawful concerns, the ministry said.

According to the ministry, China conducts export controls on rare earths and other critical minerals in accordance with laws and regulations, while reviewing compliant license applications intended for civilian use.