China's Commerce Ministry released the working rules of a new bilateral trade council and a '$30 billion for $30 billion' reciprocal tariff-reduction framework agreed with the United States. More than 90% of covered products will be exempted from all additional tariffs the two sides imposed on each other.
China's Ministry of Commerce on Sept. 28 published details of the China-US trade council and the '$30 billion for $30 billion' reciprocal tariff-reduction framework, the first concrete economic result after President Xi Jinping's state visit to the United States.
광고 문의 · 300×250According to China News Service, the two leaders agreed at their May meeting in Beijing to set up a government-to-government trade council. At the eighth round of economic and trade consultations, held in New York and Washington on Sept. 20-23, the sides agreed on the council's rules, a framework document on reciprocal tariff cuts and the lists of products concerned.
Toys and appliances versus farm goods, medical devices and coal
Using 2024 trade as a reference, each side will reciprocally cut tariffs on roughly $30 billion of imports. More than 90% of the products will be exempted from all mutually imposed additional tariffs and receive most-favored-nation rates.
The US will lower tariffs on about $30 billion of Chinese goods such as toys, household appliances, baby products, kitchen and bathroom goods and holiday gifts. China will cut tariffs on about $30 billion of US goods including farm products, personal care items, medical devices and coal. Nikkei's Chinese edition reported that the US list covers 77 product categories and China's 1,619.
Soybeans, crude oil and liquefied natural gas were left off the lists and handled as a 'special category.' US coal was included in the framework, allowing China to import it annually in 2027 and 2028.
'Lengthen the cooperation list, shorten the problem list'
The ministry said the council will discuss arrangements to optimize bilateral trade and issues affecting it, and expressed hope it will become an important platform to 'lengthen the list of cooperation and shorten the list of problems.' The cuts will be implemented simultaneously once each side completes its domestic legal procedures.
The ministry said the arrangement will help stabilize China-US trade, improve conditions for Chinese exports to the US and meet domestic demand. South Korean exporters, long affected by US-China tariff friction, are also watching how the two countries' trade structure shifts.
