China-U.S. Economic and Trade Teams Reach Consensus in Consultations

Question:
It is understood that China and the United States reached joint arrangements in their Kuala Lumpur economic and trade consultations to resolve their respective concerns in trade and commerce. Could you please introduce more details about the consensus reached at the Kuala Lumpur consultations?

Answer:
The leaders of China and the United States recently met in Busan, Republic of Korea, where they held in-depth discussions on issues including China-U.S. economic and trade relations, and agreed to strengthen cooperation in the economic and trade fields. China is willing to work with the U.S. to jointly safeguard and implement the important consensus reached by the two heads of state.

Through the Kuala Lumpur consultations, the China-U.S. economic and trade teams reached the following principal results and consensus:
1.The U.S. will cancel the so-called 10% “fentanyl tariff” imposed on Chinese goods (including goods originating in the Hong Kong Special Administrative Region and the Macao Special Administrative Region). The 24% reciprocal tariff the U.S. imposed on Chinese goods (including Hong Kong and Macao goods) will be suspended for one year. China will correspondingly adjust its counter-measures against the above U.S. tariffs. The two sides agreed to continue extending certain tariff exclusion measures.

2.The U.S. will suspend for one year its application of the 50% “through‐check rule” in export controls announced on September 29. China will suspend for one year its relevant export control measures announced on October 9, and will study and refine specific arrangements.

3.The U.S. will suspend for one year the implementation of its investigation measures under Section 301 against China in the maritime, logistics and shipbuilding industries. After the U.S. suspends those measures, China will likewise suspend its counter-measures against the U.S. for one year.

In addition, the two sides reached consensus on issues including fentanyl-related anti-drug cooperation, expanding agricultural product trade, and handling individual enterprise cases. The two sides also reaffirmed the outcomes of the Madrid economic and trade consultations: the U.S. made positive commitments in investment and other fields, and China will work with the U.S. to properly resolve matters related to TikTok.

The China-U.S. Kuala Lumpur economic and trade consultations achieved positive results. They amply demonstrate that by maintaining the spirit of equality, respect and mutual benefit, the two sides can find ways to resolve issues through dialogue and cooperation. These outcomes are hard-won. China looks forward to working with the U.S. to implement them well, and to injecting greater certainty and stability into China-U.S. economic and trade cooperation and the world economy.