Ministry of Commerce: China and the US agree to reduce tariffs on products imported from each other by about US$30 billion on an equal basis

The Zhitong Finance App learned that from September 20 to 23, the Sino-US economic and trade teams held economic and trade negotiations in New York and Washington, USA, and reached positive consensus, contributing to the results of the meeting between the heads of state of the two countries in the field of economy and trade. The head of the US Department of Commerce explained the results of the relevant economic and trade negotiations. The two sides agreed to reduce tariffs on products imported from each other on an equal scale of about 30 billion US dollars. Of these, tariffs on about 90% of each product will be reduced to the MFN rate level. The two sides will simultaneously implement tax reduction arrangements after implementing the relevant procedures in accordance with their respective domestic laws. Information on the peer-to-peer tax reduction arrangement will be announced later.

The original text is as follows:

The head of the US Department of Commerce explains the results of the eighth round of Sino-US economic and trade negotiations

From September 20 to 23, the Sino-US economic and trade teams held economic and trade negotiations in New York and Washington, D.C., and reached positive consensus, contributing to the economic and trade results of the meeting between the heads of state of the two countries. The head of the US Department of Commerce explained the results of the relevant economic and trade negotiations.

I. About the Trade Council

After discussions, China and the US agreed to establish the Sino-US Trade Council under the Sino-US economic and trade consultation mechanism. The main task is to optimize bilateral trade. The economic and trade teams of the two sides have reached a consensus on the tasks, structure, responsibilities, consultation arrangements, etc. of the council, which will be announced later. The Trade Council will first discuss the “30 billion to 30 billion” peer-to-peer tax reduction framework with a view to reaching a consensus. An agricultural working group has been set up within the framework of the Trade Council, and other arrangements to optimize bilateral trade will also be considered. I believe that the Trade Council will provide an important platform and institutional guarantee for China and the US to continuously lengthen the list of cooperation and reduce the list of issues in the economic and trade fields, and promote the continued stable and positive development of Sino-US economic and trade relations.

II. On the “30 billion to 30 billion” peer-to-peer tax reduction arrangement

In order to implement the important consensus reached during the meeting between the heads of state of the two countries, China and the US have held multiple rounds of negotiations on the 30 billion US dollar equal tax reduction arrangement under the framework of the Trade Council based on mutual respect and equal consultations, and have now reached a consensus. The two sides agreed to reduce tariffs on products imported from each other on an equal scale of about 30 billion US dollars. Of these, tariffs on about 90% of each product will be reduced to the MFN rate level. The two sides will simultaneously implement tax reduction arrangements after implementing the relevant procedures in accordance with their respective domestic laws. Information on the peer-to-peer tax reduction arrangement will be announced later. This arrangement will help continue to stabilize Sino-US economic and trade relations and create better conditions for our related products to be exported to the US.

III. On expanding coal trade

The economic and trade teams of China and the US have reached an agreement that tariffs on coal imported from the US will be included in the “30 billion to 30 billion” equal tax reduction framework, which will help China to import coal from the US every year in 2027 and 2028. Importing US coal is not only a beneficial complement to China's domestic coal market, but also brings stable economic income and employment to the US coal industry, which is conducive to stabilizing and expanding bilateral trade between China and the US. We look forward to the continuous deepening of cooperation between China and the US in the coal sector with the joint efforts of both sides to achieve mutual benefit and win-win situation.

IV. About the Sino-US Investment Council

After negotiations, China and the US agreed to establish the Sino-US Investment Council under the Sino-US economic and trade negotiation mechanism. The Council will establish an institutionalized communication platform between the two sides. The economic and trade teams of the two sides will conduct normalized dialogue on potential investment opportunities and investment barriers, enhance policy transparency and predictability on the premise that they meet the respective legal and regulatory requirements of the two countries, and respond to the legitimate concerns of enterprises.

V. On the working group on agriculture

In May of this year, the economic and trade teams of China and the US reached a series of positive agreements on promoting the resolution of non-tariff barriers and market access issues for some agricultural products between the two sides, and agreed in principle to include related products in the “30 billion to 30 billion” peer-to-peer tax reduction framework. Afterwards, the economic and trade teams of the two sides conducted professional and practical discussions on agricultural issues. In this context, the two sides agreed to establish an agricultural working group under the Sino-US Trade Council, to be co-led by China's Ministry of Commerce and the Office of the United States Trade Representative, with the participation of relevant regulators of the two countries. The working group will discuss issues such as two-way market access and regulation for agricultural products. The two sides agreed to hold the first meeting of the working group before the end of 2026. China will continue to push for the US to resolve China's concerns in the agricultural sector through working group meetings.

6. About financial services

In recent years, China has independently expanded the openness of financial services, which has been recognized by the international community, and many US institutions have also benefited from it. This time, the two sides reached a consensus in principle in the field of financial services. The Chinese side will review and approve the applications of financial service institutions from various countries, including US companies, to exhibit their businesses and establish branches in China in accordance with the law and regulations. China hopes that the US will also provide a fair, transparent and stable policy environment for Chinese financial institutions.

7. Dialogue on artificial intelligence between China and the US

In this round of negotiations, the two sides agreed that under the Sino-US economic and trade negotiation mechanism, Vice Premier He Lifeng and Minister of Finance Beisent established an artificial intelligence dialogue as the respective leaders of China and the US, and had the first dialogue to exchange risks and benefits related to artificial intelligence. The two sides agreed to hold the next dialogue before the end of November this year. The two sides agreed to establish communication channels for artificial intelligence incidents.

8. On the extension of the joint arrangement on the Kuala Lumpur Economic and Trade Consultations

In October 2025, China and the US reached a joint arrangement in Kuala Lumpur to resolve their respective economic and trade concerns, suspending implementation of some of their respective tariff and non-tariff measures until November 10, 2026. In the current economic and trade negotiations, China and the US agreed to continue to actively discuss this matter on the basis of extending the joint arrangement of the Kuala Lumpur Economic and Trade Negotiations until January 10, 2027, with the aim of reaching a mutually agreed solution. On the one hand, this arrangement provides space for the two sides to take stock and evaluate the implementation of the joint arrangement and think about how to advance Sino-US economic and trade relations in the next step. On the other hand, it provides a relatively stable and predictable policy environment for enterprise cooperation between the two sides through a combination of extending a certain period of time and continuing active discussions. I believe the two sides will continue to work hard to find a positive solution to the continuation of the extension through high-level economic and trade interaction before the end of the year.

9. On increasing direct flights between China and the US

Passenger flights between the two countries play an important role in promoting personnel exchanges, cultural exchanges, and economic and trade cooperation between the two countries. During this negotiation, China and the US exchanged views on increasing direct passenger flights. The two sides agreed to maintain communication on increased flights between China and the US and related matters.

10. On implementing the consensus reached in previous consultations

Since last year, the two sides have held eight rounds of economic and trade negotiations. They have reached a series of mutually beneficial, balanced, and positive economic and trade results on important economic and trade issues of common concern, such as promoting bilateral trade and investment, and have maintained the overall stability of economic and trade relations between the two countries. In this negotiation, China and the US have reaffirmed and once again promised to continue to implement the agreements reached in previous economic and trade negotiations. This will create favorable conditions and a stable environment for economic and trade cooperation between the two countries, and is also of great significance in promoting global economic development.

This article was edited by “Ministry of Commerce”, Zhitong Finance Editor: Li Fu.