China and the United States have announced a series of reciprocal tariff suspensions and trade concessions following high-level economic talks in Kuala Lumpur, signaling a potential thaw in bilateral tensions. The agreements, confirmed by China's Ministry of Commerce on Thursday, include a U.S. commitment to cancel 10% tariffs on fentanyl-related products and extend suspensions on 24% reciprocal tariffs affecting goods from the Chinese mainland, Hong Kong, and Macao Special Administrative Regions.
In response, China will adjust its countermeasures while maintaining certain tariff-exclusion policies. Both nations agreed to suspend new export control measures for one year, with the U.S. pausing expanded 'entity-list' restrictions and China delaying recently announced export controls pending further review.
The deal addresses sector-specific tensions, with Washington postponing Section 301 measures targeting China's maritime and shipbuilding industries. Beijing pledged corresponding suspensions once U.S. measures take effect. Notably, the countries found common ground on anti-drug cooperation, agricultural trade expansion, and resolving corporate disputes.
A ministry spokesperson emphasized the outcomes demonstrate how 'dialogue and cooperation based on equality and mutual benefit' can resolve complex issues. The talks built on previous progress from Madrid negotiations, with the U.S. making new investment commitments and both sides agreeing to address TikTok-related concerns through continued dialogue.
While celebrating the hard-won progress, Chinese officials urged sustained bilateral efforts to implement agreements, stressing their importance for stabilizing global economic recovery. The developments come as businesses worldwide monitor how these measures might ease supply chain pressures and reshape Asia-Pacific trade dynamics.
