China and the US have agreed to reduce tariffs on US$60 billion worth of goods traded between the two countries, covering products ranging from agricultural goods and seafood to household appliances and toys.
Under the US-China Board of Trade, each country has recommended US$30 billion of non-sensitive goods for more favourable tariff treatment, US Trade Representative Jamieson Greer said.
The agreement was among the outcomes of President Xi Jinping’s meeting with US President Donald Trump in Washington last week, alongside an extension of the existing trade truce.
China plans to reduce tariffs on a range of US agricultural products including corn, wheat, sorghum, meat, dairy products, vegetable oils and meals. Soybeans were not included on the list.
Beijing will also look at lowering tariffs on US fish and seafood, logs and wood products, cosmetics and medical devices.
The US, meanwhile, plans to reduce reciprocal tariffs on Chinese goods including small household appliances such as coffee makers and toasters, tableware, blankets and bed linen.
The list also covers toys, fireworks, artificial flowers, Christmas tree lights and other holiday decorations as well as children’s car seats.
China’s commerce ministry said the two-month extension of the trade truce, which runs through Jan 10, would provide both sides with more time to assess the existing arrangement and continue discussions on economic and trade issues.
The extension would also provide a “relatively stable and predictable policy environment” for businesses, the ministry said.
The two countries will hold regular discussions on investment opportunities and barriers, policy transparency and other concerns raised by companies.
The agreement also includes plans for China to import 10 million tonnes of US coal annually in 2027 and 2028, according to the White House. The volume is equivalent to about 2% of China’s annual coal imports.
China’s commerce ministry said US coal would supplement its domestic coal supply while providing economic benefits and employment for the US coal industry.
Oil and liquefied natural gas were not included in the agreement.
On artificial intelligence, China and the US agreed to establish a communication channel for AI-related incidents and hold another dialogue by the end of November.
China will also examine applications from foreign financial institutions, including US-backed firms, to conduct business and open branches in the country.
Both sides will continue discussions on increasing flights between China and the US.
Reuters
