BEIJING — Chinese officials stated Thursday that they and their American counterparts are aiming to finalize an agreement on lowering import taxes in the near future, raising expectations for a potential announcement during the upcoming meeting between the two nations’ leaders.
Commerce Ministry spokesperson Huang Ling told reporters that negotiators are working to implement reciprocal tariff reductions on $30 billion worth of goods “at an early date.” According to China’s official Xinhua News Agency, this figure represents the value of goods from each side.
The talks are a key component of efforts to establish a U.S.-China Board of Trade, which was agreed upon during President Donald Trump and President Xi Jinping’s May summit in Beijing. The framework also includes a parallel Board of Investment. The two governments view these face-to-face interactions as vital for stabilizing relations between the world’s two largest economies.
Trump and Xi are scheduled to meet in Washington on September 24 for their third in-person talks over the past year. Chinese Foreign Ministry spokesperson Guo Jiakun emphasized the importance of these high-level engagements, stating that “leaders’ diplomacy plays an irreplaceable strategic guiding role” in bilateral relations.
The current negotiations aim to identify and reduce tariffs on equivalent amounts of “nonsensitive” goods, according to the U.S. However, market analysts caution that the scope for a comprehensive trade deal may be limited. Barclays Bank noted in a recent research note that while trade will be a central topic at the summit, the existing tariff truce is set to expire on November 10, making targeted reductions more likely than a broad agreement.
Gary Ng, a senior economist at Natixis, pointed out that the overall impact of any deal may be constrained by the reduced volume of bilateral trade compared to previous years. He added that any agreement on reciprocal cuts could disproportionately benefit the United States, as $30 billion accounts for approximately 28% of U.S. exports to China, whereas it represents only about 10% of Chinese exports to the U.S.
The push for reduced tariffs follows a period of intense trade conflict, during which Trump imposed steep duties on Chinese imports and China retaliated with its own levies. Chinese exports to the U.S. declined sharply last year following the rollout of the elevated tariffs.
Does anyone else think this is just theater? The tariff truce expires in two months anyway.
Interesting that analysts say it disproportionately benefits the U.S. Maybe China is finally getting a better deal?
Finally, some positive signal after the trade wars! Reciprocal cuts could boost global markets significantly.
I’m skeptical. Last time they promised ‘early dates,’ we got more paperwork and higher prices at Walmart.
The $30B figure seems oddly convenient for both sides. Is this really about trade or just photo ops ahead of the summit?
Hope is a powerful drug, but let’s see if negotiators can turn this into actual signed ink before November 10.