The Chinese Ministry of Commerce announced on September 28 the outcomes of high-level trade negotiations held in New York and Washington from September 20 to 23. China reported that the talks yielded results in ten areas, including trade, investment, agriculture, finance, and artificial intelligence (AI). Notably, both countries agreed to reduce tariffs on approximately $30 billion worth of imports from each other.
Among the ten achievements outlined by China are the following:
- A new US-China Trade Council will be established to discuss the optimization of trade between the two nations.
- Both countries agreed to mutually reduce tariffs on approximately $30 billion worth of products imported from each other, with tariffs on about 90% of these items set to be lowered to Most Favored Nation (MFN) rates. The implementation will occur simultaneously following domestic legal procedures.
- China will expand imports of US coal, including it in the tariff reduction framework of '30 billion dollars for 30 billion dollars.' This arrangement will allow China to import US coal annually in 2027 and 2028.
- A US-China Investment Council will be created to serve as a permanent dialogue platform to discuss investment opportunities and barriers, enhancing policy transparency and predictability within the bounds of each country's laws and regulations.
- An agricultural working group will be established, co-led by the Chinese Ministry of Commerce and the U.S. Trade Representative (USTR), involving relevant regulatory agencies from both countries. This group will address mutual market access for agricultural products and regulatory issues, with the first meeting scheduled by the end of 2026.
- Principled agreements were reached in the financial services sector, with China agreeing to review applications from foreign financial service companies, including US institutions, to operate and establish branches in China according to its laws and regulations. China also called for a fair, transparent, and stable policy environment for Chinese financial institutions in the US.
- An AI dialogue was initiated, with Chinese negotiator He Lifeng and US Treasury Secretary Scott Vessen joining as responsible parties. The two sides discussed the risks and benefits of AI and agreed to hold the next meeting by the end of November, establishing a communication channel for any AI-related incidents.
- The deadline for the implementation of the Kuala Lumpur Agreement from October 2025 will be extended. The two countries agreed to extend the suspension deadline for certain tariff and non-tariff measures from November 10, 2026, to January 10, 2027, and will continue further discussions.
- Discussions will be held to expand direct passenger flights between the two countries, with China expressing hope that increased flights will enhance people-to-people exchanges and economic and trade cooperation.
- Both sides reaffirmed their commitment to continue implementing existing trade negotiation agreements. The Chinese Ministry of Commerce noted that since last year, the two countries have conducted eight rounds of trade negotiations, resulting in a series of agreements in trade and investment.
The Chinese Ministry of Commerce assessed that these agreements will contribute to maintaining stability in the economic and trade relations between the two countries and provide a more stable environment for businesses. However, many of the agreements will require domestic legal procedures and follow-up negotiations in each country.
* This article has been translated by AI.
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