China and the United States held their first trade council meeting on Friday, discussing tariff cuts, agricultural trade and other issues, days before an expected meeting between Presidents Xi Jinping and Donald Trump in Shenzhen next week, China's Commerce Ministry said on Saturday.
The Commerce Ministry said the two sides held what it described as "candid, in-depth and constructive exchanges on implementing the outcomes of previous China-US economic and trade talks, including tariffs, a reciprocal '$30 billion-for-$30 billion' tariff-cut arrangement, agricultural trade and other issues of mutual concern." It did not say whether any agreements were reached.
Following a September summit between Xi and Trump in Washington, the two sides proposed a $60 billion package of reciprocal tariff cuts, including roughly $17 billion worth of US farm goods that China imported in 2024. That plan has yet to be finalised. Beijing has repeatedly urged Washington to implement the $60 billion tariff-reduction deal, calling it a prerequisite for increasing purchases of US farm goods.
Recent data underscores the persistent uncertainty over the deal: Chinese purchases of US farm goods other than soybeans are on track to hit a seven-year low this year, despite an agreement to buy $17 billion annually through 2028, a Reuters analysis of customs data showed earlier this month.
Both sides will continue using the council to address trade concerns, expand cooperation and reduce outstanding issues, the ministry added. The White House said Trump will meet Xi on Thursday on the sidelines of the Asia-Pacific Economic Cooperation forum in Shenzhen.
Analysis
Why This Matters
- The outcome of these talks and the upcoming leaders' meeting could lead to significant changes in tariffs on billions of dollars of goods, directly affecting businesses and consumers in both countries.
- US-China trade relations remain a key driver of global economic stability; any breakthrough or further tension will have ripple effects worldwide.
- The meeting in Shenzhen may determine whether the previously proposed $60 billion tariff reduction deal moves forward or stalls, influencing agricultural trade and broader supply chains.
Background
Tensions between the US and China over trade have persisted for years, marked by rounds of tariffs and negotiations. In September, Presidents Xi and Trump met in Washington and proposed a reciprocal $60 billion tariff reduction package, including $17 billion in US farm goods. However, the deal has not been finalised, and Beijing has pressed Washington to follow through, arguing it is a necessary step for China to increase purchases of US agricultural products. Chinese imports of some US farm goods have fallen despite a longer-term purchase commitment.
Key Perspectives
- China's Commerce Ministry: Described the talks as "candid, in-depth and constructive" but did not confirm any agreements, adding that both sides would continue to use the council to address trade concerns.
- The White House: Confirmed that President Trump will meet President Xi on Thursday in Shenzhen on the sidelines of the APEC forum, signalling the highest-level engagement on trade since September.
What to Watch
- Whether the leaders' meeting on Thursday produces an announcement on the $60 billion tariff reduction package.
- Any change in Chinese purchases of US farm goods leading up to and after the meeting.
- Continued use of the trade council as a mechanism for resolving disputes, and whether future meetings are scheduled.
Checked
11 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedChina and the United States held their first trade council meeting on Friday, ahead of an expected leaders’ meeting in Shenzhen next week.US Top News and Analysis: “China and the United States discussed tariff cuts, agricultural trade and other issues at their first trade council meeting on Friday, China's Commerce Ministry said on Saturday, days ahead of an expected leaders' meeting in Shenzhen next week.”
- SupportedThe meeting covered tariff cuts, agricultural trade and other issues.US Top News and Analysis: “China and the United States discussed tariff cuts, agricultural trade and other issues at their first trade council meeting on Friday”
- SupportedThe Commerce Ministry said the two sides had “candid, in-depth and constructive exchanges” on the listed trade issues.US Top News and Analysis: “"The two sides held candid, in-depth and constructive exchanges on implementing the outcomes of previous China-US economic and trade talks, including tariffs, a reciprocal '$30 billion-for-$30 billion' tariff-cut arrangement, agricultural trade and other issues of mutual concern," the ministry said.”
- SupportedThe ministry did not say whether any agreements were reached.US Top News and Analysis: “It did not say whether any agreements were reached.”
- SupportedAfter a September summit between Xi and Trump in Washington, the two sides proposed a $60 billion package of reciprocal tariff cuts.US Top News and Analysis: “Following a September summit between Presidents Xi Jinping and Donald Trump in Washington, the two sides proposed a $60 billion package of reciprocal tariff cuts”
- SupportedThe proposed package included roughly $17 billion worth of US farm goods that China imported in 2024, and the plan had not been finalised.US Top News and Analysis: “including roughly $17 billion worth of US farm goods that China imported in 2024, but the plan has yet to be finalised.”
- SupportedBeijing has repeatedly urged Washington to implement the $60 billion tariff-reduction deal, calling it a prerequisite for increasing purchases of US farm goods.US Top News and Analysis: “Beijing has repeatedly urged Washington to implement the $60 billion tariff-reduction deal, calling it a prerequisite for increasing purchases of US farm goods.”
- SupportedChinese purchases of US farm goods other than soybeans are on track to hit a seven-year low this year, despite an agreement to buy $17 billion annually through 2028.US Top News and Analysis: “Chinese purchases of US farm goods other than soybeans are on track to hit a seven-year low this year, despite an agreement to buy $17 billion annually through 2028”
- SupportedA Reuters analysis of customs data showed the purchase trend earlier this month, underscoring persistent uncertainty over the deal.US Top News and Analysis: “a Reuters analysis of customs data showed earlier this month, underscoring persistent uncertainty over the deal.”
- SupportedBoth sides will continue using the council to address trade concerns, expand cooperation and reduce outstanding issues.US Top News and Analysis: “Both sides will continue using the council to address trade concerns, expand cooperation and reduce outstanding issues, the ministry added.”
- SupportedThe White House said Trump will meet Xi on Thursday on the sidelines of the Asia-Pacific Economic Cooperation forum in Shenzhen.US Top News and Analysis: “The White House said Trump will meet Xi on Thursday on the sidelines of the Asia-Pacific Economic Cooperation forum in Shenzhen.”