China's Ministry of Commerce (MOFCOM) has provided detailed insights into the preliminary outcomes of recent economic and trade consultations with the United States. The talks, held in the Republic of Korea from May 12 to 13, 2026, focused on several critical sectors including tariffs, agriculture, aviation, and the export of critical minerals.
A New Reciprocal Tariff Framework
A cornerstone of the discussions is the agreement in principle to establish a reciprocal tariff-reduction framework. This arrangement targets products of equivalent scale, with a value of $30 billion or more on each side. According to MOFCOM officials, these products are expected to benefit from most-favored-nation tariff rates or potentially lower rates.
This strategic move is designed to stabilize and expand bilateral trade between the two largest economies. Officials noted that once implemented, the arrangement could serve as a significant reference for promoting open cooperation on a global scale.
Strengthening Aviation and Supply Chains
The consultations also yielded concrete results in the aviation sector. China has agreed to purchase 200 Boeing aircraft to support its domestic air transport development, adhering to commercial principles. In exchange, the United States will guarantee a sufficient supply of engines and spare parts to ensure the operational efficiency of China's fleet.
Regarding the sensitive issue of rare earths and critical minerals, the Chinese official emphasized that export controls are implemented strictly according to laws and regulations, with license applications reviewed for compliance and civilian use. China expressed its willingness to collaborate with the U.S. to ensure the security and stability of global industrial and supply chains, fostering mutually beneficial cooperation between enterprises.
Mutual Gains in Agriculture
Agricultural trade remains a vital component of the bilateral relationship. The two sides reached multiple consensuses on two-way market access, acknowledging that U.S. agricultural imports help bridge structural supply-demand gaps in China's domestic market while providing steady income for American farmers.
Simultaneously, China highlighted the strong potential for its specialty agricultural products—including dairy, aquatic products, vegetables, and fruits—to expand their presence in the U.S. market. MOFCOM also underscored China's openness to high-quality U.S. agricultural products, specifically mentioning the registration of U.S. beef enterprises as a sign of continued cooperation.
As the economic and trade teams maintain close communication to finalize specific arrangements, these developments signal a concerted effort to reduce frictions and foster a more predictable trading environment for business professionals and investors worldwide.
Reference(s):
China's MOFCOM elaborates on China-US trade consultation outcomes
cgtn.com
