Interpretation of the Results of the Eighth Round of China US Economic and Trade Consultation by the Head of the Department of Commerce's Department of American and Chinese Universities

From September 20th to 23rd, the China US economic and trade team held economic and trade consultations in New York and Washington, D.C., and reached positive consensus, contributing to the achievements in the economic and trade fields for the meeting between the two heads of state. The head of the US Department of Commerce interpreted the results of the economic and trade negotiations.

1、 Regarding the Trade Council

After consultation, both China and the United States have agreed to establish the China US Trade Council under the China US Economic and Trade Consultation Mechanism, with the main task of optimizing bilateral trade. The economic and trade teams of both sides have reached a consensus on the tasks, structure, responsibilities, and negotiation arrangements of the council, which will be announced later. The Trade Council will first discuss the "30 billion to 30 billion" tariff reduction framework with the aim of reaching a consensus. An agricultural working group has been established within the framework of the Trade Council, and other arrangements for optimizing bilateral trade will also be considered. I believe that the Trade Council will provide an important platform and mechanism guarantee for China and the United States to continuously expand the list of cooperation and compress the list of issues in the field of economy and trade, and promote the sustained, stable and positive development of China US economic and trade relations.

2、 Regarding the '30 billion to 30 billion' equal tax reduction arrangement

In order to implement the important consensus reached during the meeting between the two heads of state, China and the United States have held multiple rounds of consultations based on mutual respect and equal consultation within the framework of the Trade Council on a $30 billion equivalent tariff reduction arrangement, and have now reached a consensus. Both parties agree to reduce tariffs on approximately $30 billion worth of products imported from each other in an equal manner, with tariffs on approximately 90% of each party's products falling to the most favored nation tariff rate level. Both parties will implement tax reduction arrangements simultaneously after fulfilling relevant procedures in accordance with their respective domestic laws. The relevant information on the arrangement of equal tax reduction will be announced later. This arrangement will help maintain stable economic and trade relations between China and the United States, and create favorable conditions for the export of my related products to the United States.

3、 Regarding the expansion of coal trade

The economic and trade teams of China and the United States have reached a consensus that China's import tariffs on coal from the United States will be included in the "30 billion to 30 billion" equivalent tariff reduction framework, which will be beneficial for China to import coal from the United States annually in 2027 and 2028. Importing American coal is not only a beneficial supplement to China's domestic coal market, but also brings stable economic income and employment to the American coal industry, which is conducive to stabilizing and expanding bilateral trade between China and the United States. We look forward to deepening cooperation in the coal industry between China and the United States through joint efforts, and achieving mutual benefit and win-win outcomes.

4、 Regarding the China US Investment Council

After consultation, both China and the United States have agreed to establish the China US Investment Council under the China US Economic and Trade Consultation Mechanism. The council will establish a mechanism based communication platform for both parties. The economic and trade teams of both sides will engage in regular dialogue on potential investment opportunities and obstacles, while meeting the legal and regulatory requirements of both countries, to enhance policy transparency and predictability, and respond to reasonable concerns of enterprises.

5、 Regarding the Agricultural Working Group

In May of this year, the economic and trade teams of China and the United States reached a series of positive consensuses on promoting the resolution of non-tariff barriers and market access issues for some agricultural products from both sides, and agreed in principle to include relevant products in the "30 billion to 30 billion" equivalent tax reduction framework. Afterwards, the economic and trade teams of both sides conducted professional and pragmatic consultations on agricultural issues. In this context, both sides agree to establish an agricultural working group under the China US Trade Council, jointly led by the Chinese Ministry of Commerce and the Office of the United States Trade Representative, with the participation of relevant regulatory agencies from both countries. The working group will discuss issues such as two-way market access and regulation for agricultural products. Both parties agree to hold the first meeting of the working group before the end of 2026. China will continue to promote the United States to address China's concerns in the agricultural sector through working group meetings.

6、 Regarding financial services

In recent years, China's independent expansion of financial service openness has gained recognition from the international community, and many American funded institutions have also benefited from it. Both parties have reached a principle consensus in the field of financial services. China will review and approve applications from financial service institutions from various countries, including those from the United States, to expand their business and establish branch offices in China in accordance with the law and regulations. China hopes that the United States will also provide a fair, transparent, and stable policy environment for Chinese financial institutions.

7、 Regarding the China US Dialogue on Artificial Intelligence

In this round of consultations, both sides agreed that Vice Premier He Lifeng and Finance Minister Besent, as the respective leaders of China and the United States, would establish an artificial intelligence dialogue under the China US economic and trade consultation mechanism, and held the first dialogue to exchange risks and benefits related to artificial intelligence. Both parties have agreed to hold the next dialogue before the end of November this year. Both parties agree to establish a communication channel for artificial intelligence events.

8、 Regarding the extension of the Kuala Lumpur Economic and Trade Consultation Joint Arrangement

In October 2025, China and the United States reached a joint arrangement in Kuala Lumpur to address their respective economic and trade concerns, suspending some of their tariff and non-tariff measures until November 10, 2026. In this economic and trade consultation, both China and the United States agreed to continue actively exploring this matter on the basis of extending the joint arrangement of the Kuala Lumpur Economic and Trade Consultation to January 10, 2027, with the aim of reaching a mutually agreed solution. On the one hand, this arrangement provides space for both sides to take stock and evaluate the implementation of the joint arrangement, and to consider how to promote the economic and trade relations between China and the United States in the next step. On the other hand, through a combination of a certain period of extension and continued active discussions, it provides a relatively stable and predictable policy environment for cooperation between enterprises on both sides. We believe that both sides will continue to work hard and find a positive solution through high-level economic and trade interactions before the end of the year.

9、 Regarding the increase of direct flights between China and the United States

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. In this consultation, both China and the United States exchanged views on increasing direct passenger flights. Both sides agree to maintain communication on increasing flights between China and the United States and related matters.

10、 Regarding the Implementation of Consensus from Previous Negotiations

Since last year, the two sides have held eight rounds of economic and trade consultations, focusing on important economic and trade issues of common concern such as promoting bilateral trade and investment. A series of mutually beneficial, balanced, and positive economic and trade achievements have been achieved, maintaining the overall stability of the economic and trade relations between the two countries. In this consultation, both China and the United States reiterated and reaffirmed their commitment to continue implementing the consensus reached in previous economic and trade consultations. This will create favorable conditions and a stable environment for economic and trade cooperation between the two countries, and is also of great significance for promoting global economic development.