The United States and China are discussing ways to lower trade barriers, focusing on non-sensitive goods. Instead of pressuring China to change its state-led, export-driven economic model, the two countries are looking to manage trade volumes by identifying specific items they can sell to each other. While sensitive technologies will remain restricted, there are attempts to revive trade in energy, agricultural products, and some consumer goods.
According to Reuters on May 13, U.S. President Donald Trump and Chinese President Xi Jinping are expected to discuss reducing tariffs or trade barriers on approximately $30 billion worth of goods from each country during their summit this week. The focus will be on non-sensitive products that are not directly tied to national security.
This initiative reflects a shift in the U.S. trade strategy toward China. Previously, the U.S. demanded that China alter its economic model. The current negotiations emphasize managing tradeable areas within their differing economic systems rather than pressuring for systemic changes in China.
Jamison Greer, the U.S. Trade Representative (USTR), described this approach as a "Board of Trade" concept. In a recent interview with Fox Business, he stated, "This is not about changing how China governs or operates its economy. We can find ways to optimize trade between the two countries to create a more balanced relationship." He explained that this is akin to using an "adapter" to connect two incompatible economic systems.
U.S. Treasury Secretary Scott Vessen and Chinese Vice Premier He Lifeng met for about three hours at Incheon Airport in South Korea to coordinate economic agendas ahead of the summit. However, no separate statement was issued following their meeting. Reuters cited four sources familiar with the Trump administration's goals, indicating that the framework of reducing trade barriers on $30 billion from each side could serve as a starting point for a new mechanism.
It remains unclear whether specific items will be determined during the summit. Reuters reported that it is still uncertain whether Trump and Xi will finalize particular products or if they will be addressed in subsequent meetings. Wendy Cutler, a former USTR negotiator, noted that both sides are seeking common ground on product categories worth between $30 billion and $50 billion.
Energy and agricultural products are likely to be prioritized. The U.S. aims to increase its sales of energy and agricultural goods to China. Currently, China imposes an additional 10% tariff on all U.S. imports. Specifically, it has retaliatory tariffs of 10% on crude oil, 15% on liquefied natural gas (LNG), 15% on coal, and up to 55% on beef.
The U.S. may also adjust tariffs on certain consumer goods imported from China. During the first phase of the trade war in 2019, the U.S. imposed a 7.5% tariff on various Chinese consumer products, including televisions, flash memory, smart speakers, Bluetooth headphones, bedding, multifunction printers, and footwear. An additional 10% temporary tariff, set to expire in July, is applied on top of this tariff.
However, it is unlikely that these discussions will lead to a comprehensive easing of U.S.-China trade tensions. U.S. tariffs and export controls on sensitive technologies will remain in place. Non-sensitive goods account for a small portion of overall U.S.-China trade. Cutler remarked, "The basket of non-sensitive goods currently represents a very small part of total trade with China."
Trade between the U.S. and China has already significantly decreased. According to data from the U.S. Census Bureau, the trade volume between the two countries fell from $582 billion in 2024 to $415 billion in 2025, a 29% decline. During the same period, the U.S. trade deficit with China decreased by approximately 32% to $200 billion, marking the lowest level in 20 years.
Investment cooperation is still in its early stages. The two sides are also expected to discuss a "Board of Investment" concept to address investment issues. However, Greer indicated at a Hudson Institute event last month that he does not believe the relationship is at a stage to discuss large-scale, two-way investment programs with China.
Domestic opposition in the U.S. also poses a variable. Congress and industries such as automotive, steel, and technology are opposed to agreements that would allow Chinese investments in the U.S. auto industry, citing concerns that Chinese capital could undermine the U.S. manufacturing base.
* This article has been translated by AI.
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