China announced on Saturday that it reached a tentative agreement with the United States on tariff reductions and trade cooperation after high-level meetings between the two countries in Asia this week. The announcement came after trade talks in South Korea on August 13 and a summit between Chinese President Xi Jinping and US President Donald Trump in Beijing on August 14.
China’s Ministry of Commerce said both countries formed a “positive consensus” on several economic and trade issues during the discussions, reported The Chosun Daily. A ministry spokesperson said the two sides agreed in principle to discuss tariff cuts on products considered important by both governments.
“The two countries have formed a positive consensus on some tariff measures,” the spokesperson said in a statement released on August 16. “The two sides will discuss issues such as tariff reductions through the trade committee and have agreed in principle to reduce tariffs on products each side deems important on an equal scale,” the spokesperson added.
The announcement marks a possible easing of trade tensions between the world’s two largest economies after years of disputes over tariffs, exports, technology restrictions, and market access. The Chinese government did not release specific details about which products may receive tariff reductions or how large the cuts could be. The statement also did not mention timelines for implementing any agreement.
What did China and US agree on?
According to the Chinese Commerce Ministry, both sides agreed to continue talks on trade barriers and improve market access for selected products, reported The Chosun Daily. The ministry said the discussions covered agricultural trade, industrial cooperation, and aviation deals.
China said the United States agreed to work on several issues that Beijing has raised for years. These include concerns over the automatic seizure of Chinese dairy and seafood products entering the U.S. market. China also wants easier approval for exports of Chinese bonsai trees and recognition of avian influenza-free zones in Shandong Province.
In return, China agreed to address concerns raised by American officials about the registration of US beef facilities and the export of poultry products from certain US states.
“The two countries have agreed to expand two-way trade, including agricultural products, by implementing measures such as reciprocal tariff reductions on a certain range of products,” the spokesperson said.
China also announced progress on aviation cooperation. The ministry said both countries reached an understanding related to the purchase of American-made aircraft and the supply of aircraft parts. “The two countries have developed plans for China to purchase aircraft from the US and for the US to ensure the supply of aircraft engines and parts to China,” the spokesperson said.
The statement did not mention how many aircraft China may buy or which American manufacturers could benefit from the deal.
The talks came during President Trump’s visit to China, his first trip to the country in nine years. Trump arrived in Beijing on August 13 and held formal meetings and a tea session with President Xi before leaving on August 15.
Why are the talks important for global economy?
Trade tensions between the United States and China have affected global markets for years. Tariffs imposed by both countries increased costs for businesses and disrupted international supply chains. Investors and exporters have closely watched recent talks for signs of better relations between the US and China.
China’s Commerce Ministry said the latest agreement could bring more stability to the global economy. “This outcome demonstrates that both sides can find solutions through dialogue and cooperation while adhering to the principles of mutual respect, equality, and mutual benefit,” the spokesperson said.
The ministry also said trade officials from both countries will continue discussions to finalize the details of the agreements reached during the summit. “The two countries’ economic and trade teams will promptly finalize the outcomes in accordance with the agreement between the two leaders and implement them,” the spokesperson said.
President Xi also spoke about the importance of maintaining stable economic ties with the United States. “The essence of US-China economic and trade relations is mutual benefit,” Xi said, according to the ministry statement. “Both sides will work together to maintain the hard-earned positive momentum,” he added.