China and the United States have achieved significant progress in addressing mutual economic and trade concerns following two days of in-depth discussions in London. The talks concluded with both sides reaching a principled consensus aimed at consolidating recent achievements and steering bilateral relations back on track.
From June 9 to 10, delegates from the world’s two largest economies convened for the first meeting of the China-U.S. economic and trade consultation mechanism. The discussions focused on implementing the important consensus reached by Chinese President Xi Jinping and U.S. President Joe Biden during their phone call on June 5, and on establishing a framework to solidify outcomes from previous talks in Geneva.
Chinese Vice Premier He Lifeng led the Chinese delegation, engaging in talks with U.S. Treasury Secretary Janet Yellen, U.S. Commerce Secretary Gina Raimondo, and U.S. Trade Representative Katherine Tai. Vice Premier He emphasized that the essence of China-U.S. economic and trade relations lies in mutual benefit and win-win cooperation, noting that cooperation benefits both sides while confrontation harms both.
“China is sincere in pursuing economic and trade consultations, but we also have our principles,” Vice Premier He stated, urging the United States to resolve trade disputes through equal dialogue and mutually beneficial cooperation.
The latest meeting provided an opportunity for both sides to clarify outstanding economic and trade issues. Experts believe this could help steer bilateral relations back on track. “Cooperation between China and the United States in the economic and trade field benefits both nations,” said Sun Taiyi, an associate professor of political science at Christopher Newport University in the United States.
The first meeting of the consultation mechanism followed significant progress made during high-level talks on May 10-11 in Geneva, Switzerland. In a joint statement issued on May 12, China and the U.S. agreed to significantly reduce bilateral tariff levels. The U.S. lifted 91 percent of its additional tariffs on Chinese goods, with China reciprocating by removing 91 percent of its retaliatory tariffs on U.S. imports. Additionally, both sides suspended certain tariffs for 90 days.
Following the adjustment of tariff policies, trade activity surged. According to Vizion, a container tracking data provider, container bookings from China to the U.S. increased by nearly 300 percent. A manager at a cargo warehouse at Yantian Port in Shenzhen reported that inbound container volume had surged by over 60 percent at the end of May.
“The tariff war served as a reality check, proving that China is an important market as well as a supplier of goods for the U.S.,” said Michael Hart, president of the American Chamber of Commerce in China last month.
Li Chenggang, China’s international trade representative, expressed hope that the progress made will strengthen trust between China and the U.S. and further promote the steady and healthy development of economic and trade ties. Professor Sun added that both sides have recognized that cooperation and pursuing mutually beneficial outcomes serve their interests better than prolonged confrontation.
