Breakthrough in China-U.S. Trade: Tariffs suspended & export controls eased

China and the United States have reached a series of major agreements during recent economic and trade talks in Kuala Lumpur, signaling a significant easing of tensions between the world’s two largest economies.

As part of the deal, the U.S. will cancel its 10% “fentanyl tariffs” and extend for another year the 24% tariffs on Chinese goods, including products from Hong Kong and Macao. China will make corresponding adjustments to its countermeasures, and both sides agreed to continue certain tariff exemptions.

Export control measures were also addressed. The U.S. will pause for one year a new rule expanding its “entity-list” restrictions to companies at least 50% owned by listed entities. China will likewise suspend relevant export control measures for a year while reviewing specific plans.

Additionally, the U.S. will suspend Section 301 measures targeting China’s maritime, logistics, and shipbuilding sectors for a year, with China responding by suspending its countermeasures in kind.

The talks also produced agreements on fentanyl cooperation, boosting agricultural trade, and resolving individual enterprise cases. Both sides reaffirmed previous commitments from Madrid talks, including U.S. investment pledges and progress on TikTok-related issues.

A ministry spokesperson called the outcome a “positive result,” emphasizing that dialogue based on equality, respect, and mutual benefit can resolve complex trade issues. The agreements are expected to bring stability to bilateral trade and global markets, the spokesperson added.

Sino-Carib News