China and the United States have cut tariffs on $60 billion of goods traded between the two countries and extended their trade truce by two months, giving negotiators more room to work out remaining disputes.
Under the US-China Board of Trade, each country recommended $30 billion of trade in non-sensitive goods for more favorable tariff treatment, US Trade Representative Jamieson Greer said in a statement on Sunday. For the United States, Greer said the change unlocks improved market access for about 30% of US exports to China. The reciprocal cuts and truce extension followed the second summit this year between President Xi Jinping and President Donald Trump, hosted in Washington last week.
China's list spares soybeans, adds coal
China plans to trim duties on US agricultural goods including corn, wheat, sorghum, meat, dairy, vegetable oils and meals, though soybeans were left off the list, according to one of two lists released by the White House. Beijing will also cut levies on US fish and seafood, logs and wood products, cosmetics and medical devices.
On the American side, reciprocal cuts apply to Chinese small appliances such as coffee makers and toasters, tableware, blankets and bed linens, plus toys, fireworks, artificial flowers, Christmas tree lamps and children's car seats.
The summit also produced a deal for China to import 10 million metric tons of US coal annually in 2027 and 2028, about 2% of China's yearly coal imports, while liquefied natural gas and oil were left off the list. China's commerce ministry said importing US coal "brings stable economic income and employment to the US coal industry."
Truce extended to January, markets unimpressed
China's commerce ministry said the two-month extension of the trade truce, running through January 10, gives both sides room to evaluate their arrangement and consider how to advance on outstanding trade and economic issues. Both governments will hold regular talks on investment opportunities and barriers, the ministry said.
Investors found little to cheer, however. China's benchmark blue-chip index slid more than 2% to a one-year low on Monday, with technology shares hit by a bipartisan US push to ban Chinese components from data centers.
Agriculture group, AI channel and flights on the agenda
The two countries will set up an agriculture working group under a trade council, holding its first meeting before the year ends to discuss market access and regulation. The cuts are also designed to help Beijing meet a $17 billion commitment to buy US agricultural goods; China has already resumed large-scale purchases of US soybeans under a deal to buy 25 million metric tons annually.
On artificial intelligence, both sides agreed on a communication channel for incidents and will hold a follow-up dialogue by the end of November. China will also examine and approve foreign financial institutions, including those with US capital, to operate branches in the country, while both sides continue talks on adding flights between the two nations.
Source: Investing.com
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