China's Vice Premier He Lifeng is leading a delegation to the United States to hold consultations on economic and trade issues with the American side from September 19 to 23. China's Ministry of Commerce (MOFCOM) announced on Saturday that both sides will discuss mutually significant economic and trade issues, guided by an important consensus reached by the heads of state.
The latest round of negotiations followed a series of generally balanced and positive results in the field of economy and trade after the historic summit between China and the United States, which took place in Beijing from May 13 to 15. These achievements include the establishment of a trade council and an investment council, as well as resolving issues related to access to each other's agricultural markets and expanding bilateral trade through mutual tariff reductions, according to a briefing by Chinese Foreign Minister Wang Yi.
Prior to the summit, China and the US held economic and trade consultations in the Republic of Korea from May 12 to 13. Preliminary results, announced by MOFCOM on May 20, noted that the sides had engaged in close discussions regarding the extension of the joint agreement reached in Kuala Lumpur, Malaysia, in October 2025. Under this agreement, the parties agreed to suspend the application of certain tariff and non-tariff measures until November 10, 2026. These measures include 24% mutual US tariffs and corresponding Chinese countermeasures, the US 50% penetration rule in export control and related Chinese export control measures, as well as US Section 301 investigation measures targeting China's maritime, logistics, and shipbuilding industries, and China's retaliatory measures.
In a statement on July 27, MOFCOM reported that the US gave a clear promise during the economic and trade consultations that any additional countervailing tariffs on Chinese goods would not exceed 20%. Furthermore, on September 10, MOFCOM spokesperson Huang Lin stated that China and the US are conducting consultations on a mutual tariff reduction mechanism covering $30 billion worth of goods from each side, aiming to reach an agreement as soon as possible.
Why are the benefits for China and the US in trade generally balanced?
Objective data, including service trade indicators and cross-border business operations, confirms that the benefits from economic and trade relations between China and the US are generally balanced. According to the U.S. Trade Representative's Office, the US services surplus with China was $34.4 billion in 2025, which is 6.9% higher than in 2024.
Chinese Trade Minister Wang Wentao noted at a press conference in July that while China accounts for the largest share of the US trade deficit, the US is the largest source of service deficit for China, reflecting the complementary strengths of the two economies. Analysts believe that the US goods deficit with China is inevitably due to structural problems in the US economy, the comparative advantages of the two countries, and the global distribution of labor.
According to the latest estimates from the U.S. Department of Commerce's Bureau of Economic Analysis, American subsidiaries in China generated over $640 billion in revenue in 2023. In a data analysis, the American think tank ITIF wrote in May that 'the presence of American firms in China still serves US interests, as most of what their Chinese subsidiaries produce is sold in China, meaning these revenues and market share go to American, not Chinese, firms.'
What do Chinese and US business groups say?
Both Chinese and American business organizations are calling for the expansion of economic and trade cooperation. In July, a delegation of Chinese entrepreneurs, organized by the China Council for the Promotion of International Trade (CCPIT), visited Salt Lake City, Chicago, and Washington to explore new avenues of economic interaction with their American counterparts.
During meetings with the American business community, CCPIT Chairman Ren Hongbin welcomed the participation of American companies in the 'China Opportunities 2.0' program and emphasized that CCPIT would assist in strengthening bilateral and multilateral practical cooperation between the two business circles to achieve greater mutual benefit and 'win-win' outcomes. In the 'China Business Report 2026,' published on September 10, the American Chamber of Commerce in Shanghai (AmCham Shanghai) reported that the profitability of its members operating in China has recovered to its highest level since 2019, with almost four out of five respondents (78%) reporting profits in 2025, which is 7 percentage points higher than in 2024.
Business confidence has also significantly increased: 58% of respondents expressed optimism about the five-year business forecast for China, which is 17 percentage points higher than the previous year. Jeffrey Lehman, Chairman of AmCham Shanghai, attributed this growth to 'more stable relations between the US and China' this year. Lehman stated: 'We call on both countries to use the momentum of recent engagement and establish a stable, transparent foundation favorable for cross-border trade and investment.'
