In a significant move toward stabilizing bilateral economic ties, the Ministry of Commerce of the People's Republic of China (MOFCOM) recently detailed the initial outcomes of economic and trade consultations between the Chinese mainland and the United States.
The announcements follow a state visit by US President Donald Trump to the Chinese mainland from May 13 to 15, 2026. Preceding the visit, economic and trade delegations from both nations convened for intensive discussions in the Republic of Korea on May 12 and 13, where they reached a positive consensus on several critical issues.
Aviation and Industrial Cooperation
One of the primary highlights of the agreement is China's commitment to purchase 200 Boeing aircraft, a decision based on commercial principles and the specific needs of the country's air transport development. In a reciprocal arrangement, the United States will guarantee a sufficient supply of aircraft engines and essential spare parts to support these operations.
Beyond aviation, the two nations addressed the management of critical resources. MOFCOM clarified that the Chinese mainland continues to implement export controls on rare earths and other critical minerals in accordance with existing laws and regulations, noting that license applications for civilian use that comply with these rules will be reviewed.
Strategic Tariff Reductions
In a bid to expand bilateral trade, both sides have agreed in principle to discuss a reciprocal tariff reduction framework under their trade council. This arrangement targets products of an equivalent scale worth $30 billion or more on each side. According to ministry officials, products of concern are expected to benefit from most-favored-nation tariff rates or potentially lower rates.
Officials believe that once implemented, this framework will not only stabilize trade between the two largest global economies but also serve as a valuable reference for open cooperation worldwide.
The Ministry of Commerce emphasized that China remains willing to collaborate with the United States to create favorable conditions for mutually beneficial cooperation between enterprises, ensuring the security and stable operation of global industrial and supply chains. The respective economic and trade teams are expected to maintain close communication to finalize and implement these arrangements as soon as possible.
Reference(s):
China's MOFCOM elaborates on China-US trade consultation outcomes
cgtn.com
