US and China Agree Tariff Concessions and Trade Measures in Kuala Lumpur Talks

In a significant development for global economic stability, the United States and China have announced a series of mutual trade concessions, following economic and trade consultations in Kuala Lumpur.

The agreements, covering tariffs, export controls, and port fees, are designed to inject new momentum into bilateral cooperation amidst complex international economic conditions.

According to a statement from China's Ministry of Commerce, the US has agreed to remove the 10% so-called 'fentanyl tariff' imposed on Chinese goods, including those from the Hong Kong Special Administrative Region and the Macao Special Administrative Region.

Furthermore, the 24% reciprocal tariffs on Chinese imports will remain suspended for another year. China has stated it will adjust its countermeasures accordingly. Both sides have also agreed to extend certain tariff exclusion measures.

The positive momentum follows recent talks between the leaders of China and the United States in Busan, South Korea, where they engaged in in-depth discussions on bilateral relations and agreed to strengthen economic and trade cooperation.

Key Outcomes of the Kuala Lumpur Consultations

The outcomes of the talks, as detailed by the Chinese side, primarily encompass the following areas:

• Tariff Adjustments: The US will remove the 10% 'fentanyl tariff'. The 24% reciprocal tariffs will remain suspended for one year. China will make corresponding adjustments to its countermeasures.

• Export Controls: In a move to stabilise market expectations, the US has committed to suspending for one year the implementation of the 50% penetrative rule for export controls it announced on 29 September. China has responded by suspending for one year the implementation of relevant export control measures it announced on 9 October, and will study and refine specific plans.

• Port Fee Collection: Demonstrating mutual goodwill, the US has suspended for one year the implementation of Section 301 investigation measures against China's maritime, logistics, and shipbuilding industries. China will correspondingly suspend its countermeasures against the US for the same period.

Additionally, consensus was reached on fentanyl anti-drug cooperation, expanding agricultural trade, and addressing specific cases involving relevant enterprises. The outcomes of the Madrid economic and trade consultations were also reaffirmed, with the US making positive commitments on investment. China will work with the US to properly resolve issues related to TikTok.

Ministry of Commerce Confirms Details

At a regular press conference on the afternoon of 30 October, Ministry of Commerce Spokesperson He Yongqian confirmed the arrangements.

She stated that the published notice outlined the main outcomes of the Kuala Lumpur consultations, covering areas such as the US Section 301 measures, the extension of the reciprocal tariff suspension period, fentanyl tariffs and law enforcement cooperation, and agricultural trade and export controls.

'The positive outcomes of the Kuala Lumpur consultations demonstrate that, under the strategic guidance of both nations' leaders and through dialogue and cooperation conducted in a spirit of equality, mutual respect and reciprocity, solutions to issues can be found,' said Spokesperson He Yongqian.

She added that these achievements were hard-won and that China looks forward to working with the United States to implement them effectively, thereby injecting greater stability and certainty into Sino-US economic cooperation and the global economy.