In a significant development following recent economic and trade consultations, China and the United States have agreed to reduce tariffs on approximately $30 billion worth of goods from each side. This arrangement will see tariffs on about 90% of the products involved reduced to most-favoured-nation rates. The reductions are set to be implemented simultaneously once both countries complete their respective domestic procedures.
Additionally, China and the US have decided to extend their existing economic and trade arrangement from November 10, 2026, to January 10, 2027. The extension provides a framework for ongoing negotiations aimed at reaching a more comprehensive long-term agreement.
To enhance bilateral trade discussions, the two nations will establish a Board of Trade. This body will focus on strengthening dialogue and addressing key trade issues. An agricultural working group is also being formed to tackle market access and regulatory concerns, reflecting the importance of agriculture in bilateral trade.
Furthermore, the countries will set up a bilateral investment board to explore investment opportunities, address trade barriers, and promote policy transparency. This initiative underscores a mutual interest in fostering a more open and transparent investment environment.
The discussions also touched upon artificial intelligence, with both sides agreeing to continue dialogue on this rapidly evolving field. A new communication channel for AI-related incidents will be established, and another round of talks is planned before the end of November.