China MOFCOM Interprets Preliminary Outcomes of China-US Trade Consultations

At the invitation of President Xi Jinping, US President Trump paid a state visit to China from May 13 to 15, during which the two heads of state held talks in Beijing. On May 12-13, the China-US trade teams held economic and trade consultations in South Korea to prepare the economic agenda for the summit. Intensive consultations on specific outcomes yielded positive consensus. The head of the Department of American and Oceanian Affairs of China's Ministry of Commerce (MOFCOM) elaborated on the preliminary trade outcomes.

I. On Tariff Arrangements

China and the US have reached a consensus on tariff arrangements. Tariffs have been a pivotal issue in China-US economic relations. Since 2025, both sides have held multiple rounds of consultations to de-escalate the "tariff war." In February 2026, the US Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, after which the US launched two Section 301 investigations against many trading partners and indicated it would replace prior IEEPA tariffs with new Section 301 tariffs.

In this round of consultations, the two trade teams engaged in in-depth communication on tariff issues and reached arrangements on bilateral tariffs. China hopes the US will honor its commitments: regardless of the justification used to impose or substitute tariffs on China in the future, the US tariff level on China must not exceed the level agreed in the Kuala Lumpur joint arrangement. Through subsequent consultations, China also seeks further removal of unilateral US tariffs on Chinese goods, creating favorable conditions for expanding bilateral trade cooperation.

Both sides agreed in principle to discuss a reciprocal tariff-reduction framework under the Trade Council, covering products worth at least USD 30 billion on each side. Products of mutual concern may be eligible for most-favored-nation tariff rates or even lower. Once implemented, this arrangement would not only help stabilize and expand China-US bilateral trade but also provide a useful reference for global open cooperation. The two trade teams will maintain close communication to finalize specific arrangements and push for swift implementation.

II. On Trade and Investment Councils

China and the US have agreed to establish intergovernmental Trade and Investment Councils. The essence of China-US economic relations is mutual benefit and win-win outcomes; equal consultation is the only correct approach to disagreements and frictions. Both sides agreed to set up these two councils, and the trade teams will maintain close communication to define the structure, functions, and operational modalities as soon as possible.

Once established, the two councils will provide a platform for pragmatic discussions on trade and investment concerns of both sides, facilitating policy exchange, cooperation expansion, and dispute management. They will help shift China-US trade consultations from "crisis-driven response" to "institutionalized management," providing an effective mechanism to underpin bilateral economic cooperation.

III. On Expanding Agricultural Trade

China-US agricultural trade is an important component of bilateral economic cooperation and reflects complementary supply and demand. China is the world's most important agricultural market; importing US agricultural products can fill structural supply gaps in the domestic market, enrich the variety of products available to Chinese consumers, and enhance the diversity and security of China's food supply. The two sides agreed in principle to explore cooperation in key agricultural product categories, and specific arrangements will be developed through follow-up consultations by the trade teams.

IV. On Energy and Mineral Cooperation

The two sides agreed to strengthen cooperation in energy and minerals. Both sides will explore cooperation frameworks for LNG and other energy products, as well as critical minerals, to promote common interests through market-oriented, mutually beneficial, and rule-based cooperation.

V. On Deepening Two-Way Opening

Both sides agreed to continue advancing two-way opening. The US side agreed to maintain current market access arrangements for Chinese entities in the US, and to assess market access conditions for Chinese enterprises. The Chinese side stated it will continue to promote high-level opening and improve the business environment for foreign enterprises operating in China according to law.