OMM Redaksiyası
China and the United States have unveiled a new package of measures to expand economic cooperation following a meeting between Presidents Xi Jinping and Donald Trump. The agreements cover tariffs, agriculture, coal imports, financial services, aviation and artificial intelligence.
The package outlines how the two countries intend to manage their economic relations. Although some key strategic sectors are not included, it provides tariff concessions on billions of dollars in goods and establishes new channels for dialogue on agriculture and artificial intelligence.
Key decisions on tariffs and trade
1. The trade truce has been extended until January 2027. The trade truce between China and the United States has been extended by two months until Jan. 10, 2027. China’s Ministry of Commerce said the move would give both sides time to assess the implementation of economic and trade agreements and consider opportunities for further progress.
The ministry said the decision would create a more stable and predictable policy environment for companies and allow intergovernmental negotiations to continue.
2. Tariff concessions will cover about $30 billion worth of goods in each direction. The two sides released reciprocal product lists covering trade worth about $30 billion in each direction.
China’s list includes 1,619 product groups imported from the United States, including agricultural goods, personal care products, timber, medical equipment and coal. The US list covers 77 categories of Chinese goods, including toys, tableware, fireworks, glass products, wooden New Year decorations and footballs.
China’s Ministry of Commerce said tariffs on more than 90% of the products would be reduced to most-favored-nation rates. US Trade Representative Jamieson Greer said the lists focused on products that were not sensitive and could benefit from more favorable tariffs. The lists may be amended, although changes are not expected more than once a year.
Cooperation in agriculture, coal and finance
3. A separate working group on agriculture will be established. A dedicated agriculture working group will operate within the US-China Trade Council, a bilateral mechanism established in May. Its first meeting is planned by the end of 2026. The sides will discuss mutual market access and regulatory requirements for agricultural products.
4. China has committed to buying coal from the United States. The White House said after the summit that China would import at least 10 million tons of coal from the United States in each of 2027 and 2028. That volume is equivalent to about 2% of China’s annual coal imports. The agreement does not include liquefied natural gas or oil.
China’s Ministry of Commerce said US coal was a useful additional source for the domestic market and that the imports would support revenue and employment in the US coal industry.
5. A communications channel will be created for artificial intelligence-related incidents. Beijing and Washington agreed to establish a dedicated communications channel to maintain contact in the event of incidents involving artificial intelligence. The two sides are expected to hold another dialogue on artificial intelligence by the end of November.
6. China has signaled further opening in the financial services sector. Beijing said it would consider applications from financial services companies from around the world, including entities established with US capital, seeking to operate or open branches in China. China also said it expected the United States to provide a fair, transparent and stable policy environment for Chinese financial institutions.
Flights and limits of the agreement
7. China and the United States will discuss increasing flights between the two countries. The two governments agreed to continue talks on increasing the number of air services. However, no specific target or timetable for additional flights was announced.
8. Analysts say the agreement also has limitations. Economists believe the tariff measures could provide significant support to some areas of bilateral trade.
Lin Song, chief economist for Greater China at ING, described the outcome positively in terms of the products covered. Gary Ng, chief economist at Natixis, said consumer goods made up most of the US list, which could help ease inflation in the United States and give Chinese companies an additional market for excess production capacity.
Jacob Cook of Beijing-based WPIC Marketing + Technologies said US brands in fast-growing categories such as hair care, personal care and baby food could also benefit.
Prashant Bhayani, Asia chief investment officer at BNP Paribas Wealth Management, said the overall economic impact could be relatively limited. He said US exports to China totaled about $68 billion in the first seven months of 2026, while China’s exports to the United States amounted to approximately $270 billion in the first eight months.
These figures show that $30 billion in trade represents a larger share of US exports to China than of Chinese exports in the opposite direction. Golden Arts Gifts & Decor, a New Year decorations manufacturer in southern China, welcomed the decision. However, the company said most of this year’s New Year products had already been shipped, limiting the immediate impact of the agreement.
9. Chips, electric vehicles and batteries were left outside the agreement. Despite the new areas of cooperation, no agreement was reached on chips, electric vehicles or batteries, which are considered strategically sensitive sectors.
The United States has also included China, along with 15 other trading partners, in a “Section 301” investigation into excess industrial capacity. The possibility of additional tariffs remains after the investigation is completed.
According to BNP Paribas Asset Management, China’s global trade surplus reached a record $1.2 trillion in 2025 and stood at about $800 billion by August 2026.
10. The next stage will test implementation of the commitments. The coming months will show how quickly the new agreements are translated into practical steps. The first meeting of the agriculture working group must be held by the end of 2026, while the next dialogue on artificial intelligence is scheduled for no later than the end of November.
Xi Jinping and Donald Trump are expected to meet again at the Asia-Pacific Economic Cooperation summit in Shenzhen in November and at the G20 summit in Florida in December.
Lin Song of ING said he did not expect a significant escalation in trade tensions by the end of the year as the two sides continued working on new agreements.
