China confirms reciprocal tariff talks with US on $30B trade

China's Ministry of Commerce said Sept. 10 that trade teams from Beijing and Washington are negotiating details of a reciprocal tariff-reduction framework covering at least $30 billion in goods on each side.

Spokesperson Huang Ling told reporters in Beijing that working teams are conducting consultations to put the tariff reductions into effect as early as possible.

The proposed framework targets goods valued at $30 billion or more for each country. Both governments aim to lower duties on designated goods to most-favored-nation rates or below.

The bilateral discussions follow an agreement in principle reached during meetings between American and Chinese leaders in Beijing from May 13 to May 15.

China's commerce ministry announced May 20 that both governments had agreed to pursue equal-scale duty reductions under a newly created bilateral Trade Council.

United States Trade Representative Jamieson Greer confirmed the $30 billion baseline May 26 as Washington prepared domestic administrative proceedings to identify qualifying imports.

The Office of the United States Trade Representative published a formal notice June 2 to solicit public comment on candidate product lines for duty rollbacks.

The notice asked American importers and producers to submit specific eight-digit Harmonized Tariff Schedule product codes across agricultural, chemical and industrial sectors.

The agency set criteria requiring that proposed duty rollbacks must not compromise domestic economic security or critical manufacturing capacity, according to the filing.

Written comments for the American administrative proceeding closed July 10, with rebuttal filings concluding July 27, according to Federal Register notices.

Trade associations, equipment manufacturers and chemical processors submitted hundreds of requests to lower punitive duties on essential production inputs and replacement parts.

China conducted a parallel domestic consultation across industrial sectors, local government trade bureaus and foreign business organizations operating in the country.

Meng Huating, a commerce ministry official, said July 23 that Beijing was reviewing recommendations from domestic companies and American business chambers.

Meng said both governments maintained direct communication regarding the organizational structure, operational functions and review procedures of the joint Trade Council.

The bilateral framework aims to establish a repeatable mechanism where reciprocal duty exemptions can be negotiated without reopening broader statutory tariff schedules.

The negotiations also build on commercial transactions discussed at the May summit, including Chinese commitments to purchase 200 commercial aircraft from Boeing.

That aircraft transaction includes engine supply and service agreements involving General Electric, which supplies turbofan powerplants for commercial airframes, according to Chinese statements.

The tariff cuts focus on non-sensitive industrial goods, materials and components that have faced additional duties under retaliatory trade actions since 2018.

Lowering tariffs to most-favored-nation levels would reduce import costs on eligible items that currently carry supplemental levies ranging from 7.5% to 25%.

East Asian suppliers that deliver intermediate components to Chinese export manufacturers stand in the path of the proposed reciprocal duty changes.

South Korean electronics and materials producers provide precision inputs that Chinese facilities assemble into finished capital goods exported to the United States.

Japanese machinery makers and automation vendors similarly supply precision robotics, machine tools and electronic sub-assemblies to manufacturing plants throughout coastal China.

Tariff relief on $30 billion in transpacific trade would ease supply chain overhead for global production networks spanning North America and East Asia.

The framework establishes the Trade Council as a permanent negotiating table to handle routine trade friction and evaluate potential future tariff modifications.

Both governments agreed to set up an investment council alongside the trade body to review bilateral capital flows, the commerce ministry said.

Chinese and American teams are now reconciling candidate item lists to ensure that each country receives balanced trade value under the framework.

The Ministry of Commerce has not published the specific product lines eligible for tariff rollbacks, and formal tariff schedules remain undisclosed.

The notice does not state whether the initial tariff concessions will take effect simultaneously or roll out across staggered administrative phases.

The Office of the United States Trade Representative published no official statement Sept. 10 to corroborate the current status of working-level talks.

The bilateral Kuala Lumpur consensus set November as a formal benchmark for both sides to review commercial progress and implement bilateral trade arrangements.