The United States and China extended the trade deal they signed in Oct. last year until Nov. 10 this year and agreed to lower tariffs and further open the market for agricultural, livestock, and fisheries products. China decided to introduce 200 U.S.-made Boeing aircraft, and the two countries also discussed export controls on rare earths and ways to stabilize supply chains.
China's Ministry of Commerce on the morning of the 20th announced on its website the results of the U.S.-China trade talks held in Korea on the 12th–13th and the summit agreements in Beijing on the 13th–15th. The agreements include: ▲ extension of the Kuala Lumpur agreement to Oct. 2025 ▲ talks on a $30 billion (about 45 trillion won) mutual tariff reduction framework ▲ expanded market access for agricultural and fisheries products and easing of non-tariff barriers ▲ resumption of approvals for U.S. beef ▲ promotion of cooperation on rare earths ▲ introduction of 200 Boeing aircraft.
According to the announcement, the United States and China will defer until Nov. 10 this year the implementation period of measures agreed in Kuala Lumpur ahead of the Busan summit in Oct. last year. At that time, the two countries agreed to cut the "fentanyl tariff" on China to 10%, to defer imposing an additional 24% tariff on Chinese goods and Section 301 measures, and to halt China's retaliatory actions accordingly.
First, the two countries agreed to discuss a framework for equivalent tariff cuts on products of the same scale. The scale is at least $30 billion each, and for products of mutual interest, the most-favored-nation rate or a lower rate may apply. The ministry said, "Going forward, U.S. tariffs on China should not exceed the level of the Kuala Lumpur agreement," adding, "We also hope follow-up talks will further abolish unilateral tariffs on China to create favorable conditions for expanding bilateral economic and trade cooperation."
Trade in agricultural products will also expand. The two countries formed a series of positive common understandings in advancing solutions to non-tariff barriers and market access issues for certain agricultural products and, in principle, agreed to include the related products in the mutual tariff reduction framework.
Specifically, the United States will lift automatic detention measures on Chinese dairy products and three seafood items. It will allow exports to the United States of Chinese cultivated-soil bonsai, recognize non-occurrence areas of highly pathogenic avian influenza (AI) in Shandong Province, China, and expedite reviews of applications to lift Chinese corporations' import alert blacklists.
China will resume registration of U.S. beef corporations, lift highly pathogenic avian influenza restrictions on certain U.S. states, and resume imports of poultry products from the related states. The ministry said, "Some commitments have been carried out as scheduled," adding, "We hope to create good conditions to deepen cooperation in agriculture with the United States and to promote trade in agricultural products."
Export controls on rare earths were also discussed. The ministry said, "We agreed to jointly study ways to address mutual reasonable and lawful concerns regarding rare earth exports." It added, "Together with the United States, we are willing to create favorable conditions to promote mutually beneficial cooperation among the two countries' corporations and to ensure the safety and stability of global industrial and supply chains."
In addition, China will introduce 200 Boeing aircraft from the United States, and the United States will ensure the supply of engines and parts to China.