KEY POINTS

• China and the United States discussed tariffs, agricultural trade and other economic issues at their first trade council meeting.
• The talks took place ahead of an expected meeting between Presidents Xi Jinping and Donald Trump in Shenzhen.
• A proposed $60 billion reciprocal tariff reduction package remains unfinalised.
• China has urged Washington to implement the arrangement, which includes commitments on agricultural trade.

MAIN STORY

China and the United States have discussed tariff reductions, agricultural trade and other economic issues at their first trade council meeting, as both countries prepare for an expected meeting between their presidents next week.

China’s Commerce Ministry said on Saturday that officials from both countries held the meeting on Friday, exchanging views on implementing agreements reached during previous economic and trade discussions.

The discussions covered tariffs, a proposed reciprocal $30 billion-for-$30 billion tariff reduction arrangement, agricultural trade and other issues of mutual concern.

The ministry described the exchanges as candid, in-depth and constructive but did not announce any new agreement.

It said both sides would continue using the council to address trade concerns, expand cooperation and resolve outstanding issues.

The meeting comes after a September summit between Chinese President Xi Jinping and US President Donald Trump in Washington, where the two countries proposed a $60 billion package of reciprocal tariff reductions.

The arrangement includes about $17 billion worth of US agricultural products that China imported in 2024. However, the package has not been finalised.

China has repeatedly urged Washington to implement the proposed tariff reduction deal, describing it as a prerequisite for increasing purchases of US agricultural products.

A Reuters analysis of Chinese customs data published earlier this month showed that purchases of US farm goods other than soybeans were on course to reach a seven-year low this year, despite an agreement for China to buy $17 billion annually through 2028.

The White House said Trump would meet Xi on Thursday on the sidelines of the Asia-Pacific Economic Cooperation forum in Shenzhen.

THE ISSUES

The proposed tariff arrangement links two important parts of US-China trade: the duties each country places on goods from the other and China’s purchases of American agricultural products.

Tariffs are taxes imposed on imported goods. When governments reduce them, imported products can become cheaper to bring into a country, although the final price also depends on other costs and market conditions.

For the United States, increased Chinese purchases of agricultural products would provide an important export market for American farmers. For China, the tariff reductions could improve the terms of trade between the two economies.

However, the arrangement remains unfinalised, and the latest meeting did not produce a publicly announced agreement.

The decline in China’s purchases of US agricultural products, excluding soybeans, also highlights the gap between trade commitments and actual buying activity. The implementation of the proposed package will therefore matter more than the announcement of the framework itself.

WHAT’S NEXT

The expected meeting between Xi and Trump in Shenzhen could provide an opportunity for both countries to address unresolved trade issues.

Whether the proposed $60 billion tariff reduction package will be finalised, and how both sides will implement their agricultural trade commitments, remain key questions.

BOTTOM LINE

The first China-US trade council meeting has reopened discussions on tariff reductions and agricultural purchases, but it has not resolved the outstanding issues. The expected meeting between the two presidents will be closely watched for signs of progress on the proposed trade arrangement.