01/06/2026
MOFCOM Department of American and Oceanian Affairs Head Elaborates on Preliminary Outcomes of China-U.S. Economic and Trade Consultations
At the invitation of Chinese President Xi Jinping, U.S. President Donald Trump paid a state visit to China from May 13 to 15. During the visit, the heads of state of the two countries held a meeting in Beijing. From May 12 to 13, the economic and trade teams of the two countries held consultations in the Republic of Korea to prepare for the summit on the economic and trade front. The two sides held intensive consultations on the specifics of the outcomes and reached positive consensus. The head of MOFCOM’s Department of American and Oceanian Affairs provided an interpretation regarding the preliminary economic and trade outcomes.
I. Tariff Arrangements
Q: China and the U.S. have reached consensus on relevant tariff arrangements during the consultations. Could you share more details?
A: Tariffs are among the key issues in China-U.S. economic and trade relations. Since 2025, the two sides have held multiple rounds of consultations on tariffs, working to de-escalate the “tariff war”. In February 2026, the U.S. Supreme Court ruled that the tariffs imposed by the U.S. government under the International Emergency Economic Powers Act (IEEPA) were unlawful. Thereafter, the U.S. launched two separate Section 301 investigations against many of its trading partners around the world and indicated that it would replace the previous IEEPA tariffs with new Section 301 tariffs.
During this round of economic and trade consultations, the Chinese and U.S. economic and trade teams had in-depth discussions on tariff issues and made arrangements for relevant bilateral tariffs. It is hoped that the U.S. side will honor its commitments that, regardless of the grounds, any future tariff imposed by the U.S. on Chinese goods, or any replacement thereof, does not exceed the level set under the joint arrangement reached during the economic and trade consultations in Kuala Lumpur, and, through follow-up consultations, further remove relevant unilateral tariffs on Chinese goods, thereby creating favorable conditions for expanding bilateral economic and trade cooperation.
At the same time, the two sides have agreed in principle to discuss at the Board of Trade, a reciprocal tariff reduction framework arrangement on products of an equivalent scale, worth USD 30 billion or more on each side. The products of respective concern as agreed by both sides are expected to enjoy most-favored-nation (MFN) tariff rates or even lower rates. The implementation of this arrangement will not only help stabilize and expand bilateral trade between China and the U.S. but also provide a useful reference for global openness and cooperation. The economic and trade teams of the two sides will maintain close communication, work out specific arrangements, and push for implementation as soon as possible.
II. Board of Trade and Board of Investment
Q: A series of economic and trade outcomes have been achieved between China and the U.S., including the agreement to establish a Board of Trade and a Board of Investment. Could you share more details?
A: The China-U.S. economic and trade relations are mutually beneficial and win-win by nature. In the face of differences and frictions, equal-footed consultation is the only right choice. Through consultations, China and the U.S. have agreed to establish between the two governments, a Board of Trade and a Board of Investment. The economic and trade teams of the two sides will maintain close communication and work out specific arrangements as soon as possible regarding the structure, functions, and operational modalities of the two boards.
Once established, the two boards will provide a platform for the two sides to engage in practical discussions on respective concerns in the trade and investment fields. They will facilitate policy exchanges, expansion of cooperation, and management of differences, and help shift the China-U.S. economic and trade consultations from a “crisis-response approach” to an “institutionalized management mechanism”, thereby providing effective institutional safeguards for bilateral economic and trade cooperation.
III. Expanding Agricultural Trade
Q: Could you share the consensus reached between China and the U.S. on expanding two-way trade, especially agricultural trade?
A: As an important part of bilateral economic and trade cooperation, China-U.S. agricultural trade is win-win cooperation, driven by supply-demand complementarity. China is the world’s most important market for agricultural products. Imports of U.S. agricultural products can help fill structural gaps between supply and demand in China’s domestic market and diversify the dining tables of the Chinese people. At the same time, China’s supersize consumer market provides a stable source of income for U.S. farmers. In addition, Chinese specialty agricultural products, such as dairy products, aquatic products, vegetables, and fruits, are potentially in significant demand in the U.S. market.
Through consultations, the two sides have reached a series of positive consensuses on resolving non-tariff barriers and market access issues concerning some agricultural products. Both sides have agreed in principle to include relevant products in the reciprocal tariff reduction framework arrangement and have set guiding targets for expanding two-way agricultural trade. It is expected that the two sides will create favorable conditions for two-way agricultural trade by jointly reducing tariffs, lowering non-tariff barriers, and expanding market access, so as to promote the recovery and continued expansion of agricultural trade cooperation.
IV. Extension of the Joint Arrangement of the China-U.S. Economic and Trade Consultations in Kuala Lumpur
Q: During this round of consultations, did the two sides discuss the extension of the Joint Arrangement of the China-U.S. Economic and Trade Consultations in Kuala Lumpur?
A: In October 2025, China and the U.S. reached a joint arrangement in Kuala Lumpur on resolving each other’s economic and trade concerns, with the agreement to suspend the implementation of some tariffs and non-tariff measures until November 10, 2026. These measures include the U.S.’s 24% reciprocal tariff and China’s corresponding countermeasures; the U.S.’s Affiliates Rule relating to export control and China’s corresponding export control measures; and measures of the U.S.’s Section 301 investigation into China’s maritime, logistics, and shipbuilding industries and China’s corresponding countermeasures.
This arrangement is of great significance to the stability of China-U.S. economic and trade relations. Securing its extension serves the common interests of both countries and meets the expectations of the international community. During this round of consultations, the two sides reiterated their commitment to continuing the full implementation of the outcomes of previous economic and trade consultations. The economic and trade teams of the two sides will maintain close communication and consultations to push for the extension of the joint arrangement of the China-U.S. economic and trade consultations in Kuala Lumpur, thereby providing a more stable policy environment and market expectations for bilateral economic and trade cooperation.
V. Rare Earth Export Controls
Q: A fact sheet on the White House website stated, “China will address U.S. concerns regarding supply chain shortages related to rare earths and other critical minerals, including yttrium, scandium, neodymium, and indium. China will also address U.S. concerns regarding prohibitions or restrictions on the sale of rare earth production and processing equipment and technologies”. What is China’s comment on this?
A: The Chinese and U.S. economic and trade teams have had thorough communication and exchanges on relevant export control issues, and the two sides will jointly study and address each other’s legitimate and lawful concerns. The Chinese government implements export controls on rare earths and other critical minerals in accordance with laws and regulations, and reviews license applications that are compliant and for civilian use. China is ready to work with the U.S. to create favorable conditions for promoting mutually beneficial cooperation between enterprises of the two countries and ensuring the security and stability of global industrial and supply chains.
VI. Aircraft Trade
Q: U.S. President Donald Trump said that China agreed to purchase 200 Boeing aircraft. Could you share more specific details?
A: Aviation is a key area for deepening mutually beneficial and win-win cooperation between China and the U.S. In accordance with the important consensus reached by the heads of state of China and the U.S., China’s aviation sector, based on its own air transport development needs, will import 200 Boeing aircraft in accordance with commercial principles. Meanwhile, the U.S. will guarantee China a sufficient supply of engines and spare parts.
VII. Market Access for Agricultural Product
Q: Recently, a MOFCOM spokesperson said that China and the U.S. have reached preliminary outcomes in the economic and trade field, including that the two sides will resolve or make substantive progress in resolving certain non-tariff barriers and market access issues concerning some agricultural products. Could you share more specific details?
A: Agricultural trade cooperation is an important part of China-U.S. economic and trade relations. The two countries are highly complementary in agriculture and have broad space for cooperation. Through equal-footed consultations, the two sides have achieved positive outcomes in agriculture and reached several points of consensus on two-way market access for agricultural products. These outcomes accommodate the concerns of both sides and produce mutual benefit and win-win results.
The U.S. is committed to resolving or making substantive progress in resolving certain non-tariff barriers and market access issues concerning some Chinese agricultural products, mainly in the following areas: First, the U.S. is committed to lifting the automatic detention measures on Chinese dairy products and dairy-containing foods imposed since 2008, which will make the export of relevant Chinese products to the U.S. easier. Second, the U.S. agrees to accept, on a pilot basis, the export of Penjing plants in growing media from China to the U.S. and to promptly initiate the revision of relevant regulations to enable market access for Chinese Penjing plants in growing media to the U.S. Third, the U.S. agrees to push for the removal of automatic detention measures on three categories of Chinese aquatic products exported to the U.S. In addition, the U.S. makes positive commitments regarding the recognition of Shandong as free of highly pathogenic avian influenza (HPAI) and the expedited review of applications by relevant Chinese enterprises for removal from the red lists of import alert.
In accordance with relevant laws and regulations, China resumes the registration of U.S. beef facilities that meet the requirements, lifts restrictions due to HPAI on certain eligible U.S. states, and resumes the import of poultry products from relevant U.S. states. China will expedite the review of information on corrective actions submitted by U.S. beef facilities that have been suspended from exporting to China due to drug residue issues, and will engage in exchanges and communication with the U.S. on agricultural biotechnology issues of U.S. concern.
China and the U.S. are important agricultural trading partners for each other. The achievement of the above outcomes not only addresses specific issues of concern for the two sides, but also lays the foundation and fosters an enabling atmosphere for deepening cooperation. Some of the commitments have already been honored as scheduled. Moving forward, the two sides should continue to uphold equal-footed dialogue, work towards the same direction, and continuously lengthen the list of cooperation and shortening the list of problems in the agricultural sector. China is ready to work with the U.S. to fully leverage their respective resource endowments and comparative advantages, and create favorable conditions for deepening bilateral agricultural cooperation and promoting agricultural trade.
VIII. Registration of U.S. Beef Facilities
Q: Recently, the U.S. side stated that during the China-U.S. economic and trade consultations in Seoul, China had resolved the issue of the registration of U.S. beef facilities for exporting to China. Could you share more details?
A: During the China-U.S. economic and trade consultations in Seoul, the two sides had in-depth exchanges on the registration of relevant U.S. beef facilities. Earlier, considering the risk of cross-species transmission of HPAI in the U.S., to ensure the safety of beef imported from the U.S., the General Administration of Customs of China suspended the registration of U.S. beef facilities in China. Subsequently, the U.S. provided relevant technical information on epidemic control multiple times as required by China. Based on China’s relevant laws and regulations as well as international animal health rules, China conducted a strict and scientific assessment of the information provided by the U.S., concluded that the measures taken by the U.S. side comply with China’s requirements, and decided to resume the registration of some U.S. beef facilities in China. In addition, with regard to certain U.S. beef enterprises that had been suspended from exporting to China due to excessive drug residues, China has provided the U.S. with a pathway to resolve the issue, including requirements for corrective actions. China will conduct a risk assessment of the U.S.’s corrective actions based on scientific principles and will send a technical team to the U.S. to carry out on-site inspections. China will determine the next steps based on the assessment results.
China attaches great importance to agricultural trade cooperation with the U.S., welcomes high-quality U.S. agricultural products to the Chinese market, and will maintain close communication with the U.S. on follow-up work under the China-U.S. economic and trade consultation mechanism, so as to properly resolve their respective concerns. (Released on May 20)
