The Chinese Ministry of Commerce announced on Monday that China and the United States have agreed to establish a "Trade Council" as part of their economic and trade consultation mechanism. The primary goal of this council is to improve bilateral trade. This agreement was reached during the eighth round of economic and trade consultations between China and the US, held in New York and Washington from September 20 to 23.
The Trade Council will provide an important platform and institutional guarantee for both countries to continue expanding their cooperation and shortening the list of problems in economic and trade issues. The council is expected to play a significant role in promoting economic and trade relations between the two nations. The consultations resulted in a positive consensus that contributes to the economic and trade outcomes of a meeting between the leaders of the two countries.
During the consultations, China and the US agreed to reduce tariffs on approximately $30 billion worth of imported goods from each other on a reciprocal basis. The tariffs on around 90% of the covered products will be reduced to most-favored-nation rates. These reductions will be implemented simultaneously after each side completes its local legal procedures. This move is expected to boost trade between the two countries.
The economic and trade teams of both countries also agreed to include Chinese imports of US coal in the framework of the mutual reduction of tariffs. This is expected to facilitate Chinese imports of US coal in 2027 and 2028. The agreement on coal imports is a significant development in the economic and trade relations between China and the US.
In addition to the Trade Council, China and the US also agreed to establish an "Investment Council" as part of their economic and trade consultation mechanism. This council will provide a platform for institutional communication between the two countries. The economic and trade teams of both countries will hold regular dialogues on potential investment opportunities and obstacles.
The establishment of the Trade Council and Investment Council reflects the commitment of both China and the US to enhancing their economic and trade cooperation. These councils will provide a framework for the two countries to address their economic and trade issues and promote mutual understanding. The agreements reached during the consultations are expected to have a positive impact on the economic and trade relations between China and the US.
The Chinese Ministry of Commerce said that the agreements reached during the consultations demonstrate the willingness of both countries to strengthen their economic and trade cooperation. The ministry expressed hope that these agreements will be implemented effectively and contribute to the growth of bilateral trade and economic cooperation. The establishment of the Trade Council and Investment Council is a significant step towards enhancing economic and trade relations between China and the US.
Key points
- China and the US have agreed to establish a Trade Council to improve bilateral economic cooperation.
- The Trade Council will provide a platform for institutional communication between the two countries to address economic and trade issues.
- China and the US have also agreed to establish an Investment Council to promote investment cooperation between the two countries.
