BEIJING (The Thursday Times) — China and the United States discussed tariffs, agricultural trade, and a plan for reciprocal tariff cuts at the first meeting of their new trade council, China’s Commerce Ministry said on Saturday, days before Donald Trump and Xi Jinping meet in Shenzhen.
The meeting, held by video link on Friday, focused on carrying out the outcomes of earlier trade talks, including tariffs, a reciprocal arrangement to cut tariffs on $30 billion of goods from each side, and farm trade, the ministry said. It described the talks as “candid, in-depth and constructive” but did not say whether any agreement was reached.
Under the arrangement, each side has drawn up a list of non-sensitive goods worth up to $30 billion that could qualify for lower tariffs. The US list covers consumer goods such as microwave ovens, electric irons, Christmas decorations, and toys, while China’s list is weighted towards farm produce including corn, sorghum, dairy products, beef, and vegetables, according to reports of the two lists.
The Office of the US Trade Representative confirmed the meeting in a post on X, saying it had held the council’s first formal session with the Chinese side together with the Treasury Department. “The Trump administration looks forward to continued engagement with China to advance a fair and balanced trading relationship between the world’s two largest economies,” it said.
Washington has said substantial tariffs will stay in place to counter what it calls China’s unfair trading practices, but that balanced trade in selected non-sensitive sectors could bring more stability to economic ties.
Farm purchases lag
The two leaders agreed to set up the council at their summit in Beijing in May. After Xi’s summit with Trump in Washington in September, the two sides proposed a $60 billion package of reciprocal tariff cuts, including about $17 billion of US farm goods that China imported in 2024. The package has not yet been finalised.
Beijing has repeatedly said Washington must put the tariff cuts into effect before China buys more American farm produce. Chinese purchases of US farm goods other than soybeans are on course for a seven-year low this year, according to an analysis of Chinese customs data published earlier this month, despite a pledge to buy $17 billion a year through 2028.
Last Friday, Vice-Premier He Lifeng, Beijing’s lead official on trade with the United States, raised serious concerns about recent US trade restrictions on China in a video call with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. The two US officials, in turn, stressed that China must carry out the agreement the two leaders reached in Busan, South Korea, in October last year.
Both sides will keep using the council to address each other’s trade concerns, expand cooperation, and narrow their differences, the Commerce Ministry said on Saturday.
Shenzhen next week
The talks come days before Trump travels to Asia. The White House has said he will meet Xi on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen, where the two leaders are also due to hold their first three-way meeting with Russia’s Vladimir Putin.
Trade ties have also been tested this month by a row over technology exports, with Beijing warning Washington against tighter chip curbs.
