China, U.S. Seal Sweeping Trade Deal With Boeing Order, Tariff Cuts

China and the United States reached a broad preliminary agreement on trade and economic cooperation following high-level consultations, China's Ministry of Commerce said, with accords covering tariffs, agricultural goods, rare earth minerals and a landmark aircraft purchase.

The economic talks were held in Seoul on May 12-13, ahead of a state visit by U.S. President Donald Trump to China from May 13 to 15, at the invitation of President Xi Jinping. The two leaders held bilateral meetings in Beijing.

Tariffs

Tariffs remained a central point of the negotiations. China said both sides had reached arrangements on bilateral tariff levels and called on Washington to honor its commitments, stipulating that any future tariffs on Chinese goods — regardless of legal justification — must not exceed the levels set under the Kuala Lumpur joint trade arrangement.

Both sides also agreed in principle to discuss a reciprocal tariff reduction framework under the newly established Trade Council, covering goods valued at $30 billion or more on each side. Products mutually identified as priorities could be eligible for most-favored-nation rates or lower.

Trade And Investment Councils

China and the United States agreed to establish two new government-level bodies — a Trade Council and an Investment Council — designed to provide institutional platforms for managing bilateral disputes and expanding cooperation.

Beijing described the move as a shift away from "crisis-driven responses" toward "institutionalized management" of trade relations, providing a more stable policy environment for both economies.

Kuala Lumpur Arrangement Extension

Both sides reaffirmed their commitment to implementing earlier trade agreements and pledged to work toward extending the Kuala Lumpur joint arrangement, which is currently set to expire on November 10, 2026.

That arrangement suspended a range of measures, including the United States' 24% reciprocal tariff and China's corresponding retaliatory measures, as well as restrictions related to maritime, logistics and shipbuilding investigations.

Boeing Aircraft Purchase

In one of the most prominent announcements, China Aviation agreed to purchase 200 Boeing aircraft on a commercial basis, in line with the consensus reached by the two heads of state. The United States committed to ensuring adequate supply of engines and spare parts for the aircraft.

Agricultural Trade

The two sides agreed to address non-tariff barriers and market access restrictions on select agricultural products, setting indicative targets for expanding two-way agricultural trade.

The United States committed to lifting an automatic detention measure on Chinese dairy and dairy-containing food products that has been in place since 2008, and agreed to allow trial imports of Chinese substrate bonsai plants. Washington also pledged to work toward lifting automatic detention measures on three categories of Chinese aquatic products, and made commitments regarding avian influenza-free zone designations in Shandong and the review of Chinese firms on import alert red lists.

In turn, China agreed to restore registrations for qualifying U.S. beef exporters, lift import restrictions related to highly pathogenic avian influenza in certain U.S. states, resume imports of poultry products from those states, and expedite review of corrective materials submitted by suspended U.S. beef firms. China also indicated it would engage with the United States on agricultural biotechnology issues.

U.S. Beef Registrations

China confirmed it had resumed registrations for qualifying U.S. beef exporters following a suspension triggered by concerns over cross-species transmission of highly pathogenic avian influenza. After reviewing technical materials provided by the United States, Chinese customs authorities determined the measures taken by the U.S. side met Chinese requirements.

For beef firms suspended due to drug residue violations, China said it had provided a remediation pathway and would send a technical team to the United States to conduct on-site inspections.

Rare Earths And Critical Minerals

On the sensitive issue of rare earths, the Ministry of Commerce said both teams had engaged in "full and in-depth communication" on export controls. Beijing reiterated that its export control regime for rare earths and critical minerals — including yttrium, scandium, neodymium and indium — operates in accordance with domestic laws and regulations, and that compliant civilian applications would continue to be reviewed for licensing.

China said it was willing to work with the United States to promote mutually beneficial cooperation between companies of both countries and to safeguard the stability of global industrial and supply chains.