Trade talks achieve positive outcomes

The outcomes achieved by China and the United States in their latest round of economic and trade consultations could help bring more certainty and confidence to global industrial and supply chains, and may contribute to stabilizing the world economy amid rising geopolitical and trade uncertainties, market observers and executives said. 

The Ministry of Commerce announced on Saturday that China and the U.S. agreed to establish trade and investment councils to address their respective concerns in trade and investment. Through the trade council, the two countries will discuss issues such as tariff reductions on specific products and have agreed in principle to lower tariffs on products of respective concern on an equivalent scale.

The two countries agreed to advance two-way trade through arrangements such as mutual tariff reductions on a range of products, including agricultural goods, while also reaching arrangements on China's purchase of U.S. aircraft and arrangements for the U.S. to ensure the supply of aircraft engines and related parts to China, the ministry said.

The two sides also agreed to resolve or make substantial progress toward resolving nontariff barriers and market access issues involving some agricultural products. For example, the U.S. will actively work to address Chinese concerns including automatic detention measures targeting dairy and aquatic products, while China will actively advance solutions to U.S. concerns regarding beef facility registration and poultry exports from certain U.S. states to China.

Business leaders said the latest outcomes could help create a more stable environment for cross-border business operations and long-term trade and investment planning.

Sean Stein, president of the U.S.-China Business Council, said that on this basis, the two sides can expand dialogue across more areas and create a more favorable environment for U.S. companies operating in China and vice versa.

Observers said the establishment of trade and investment councils could help institutionalize communication at a time when businesses on both sides are seeking greater regulatory certainty and clarity.

Denis Depoux, global managing director at German management consultancy Roland Berger, said that whatever communication platform is established would be a positive step, helping move the relationship away from the short-term volatility and uncertainty that has characterized it in recent years.

"That does not mean tensions cannot flare up again overnight. But at the very least, it provides a clearer outlook and the prospect of relative stability in the coming months," he said.

Zheng Yongnian, dean of the School of Public Policy at The Chinese University of Hong Kong (Shenzhen), said the essence of China-U.S. economic and trade relations is not a "zero-sum game", but mutually beneficial cooperation built on each side's comparative advantages. The key is to expand cooperation, manage differences and balance openness, development and security, he said.

"The economies of China and the U.S. are highly complementary," Zheng said, adding that as long as mutual demand exists, the scope for cooperation can continue to grow.

U.S. executives from sectors including agriculture and advanced manufacturing said that stable China-U.S. economic ties remain essential for long-term supply chain cooperation and market development.

Brian Sikes, board chair and CEO of U.S. agribusiness group Cargill Inc and a member of the U.S. business delegation that visited Beijing last week, said that he remains optimistic about collaboration with Chinese partners, noting that "food can be a bridge to better relationships".

Achim Loeffler, global business leader of U.S. advanced materials manufacturer Gore-Tex Brand, said that China has become one of the company's most important and fastest-growing markets, driven by rising consumer demand, faster product development cycles and a well-developed supply chain ecosystem.