On October 30, a spokesperson from China's Ministry of Commerce addressed inquiries regarding the recent China-U.S. economic and trade consultations in Kuala Lumpur, outlining key consensus points reached by both sides.
The discussions, which followed the meeting between the leaders of China and the United States in Busan, have resulted in several important agreements aimed at addressing mutual economic and trade concerns.
Key Outcomes of the Kuala Lumpur Consultations:
1. Tariff Measures
The United States will remove the additional 10% tariffs imposed on Chinese goods-including those from Hong Kong and Macau Special Administrative Regions-referred to as the "fentanyl-related tariffs." Additionally, the 24% additional tariffs on Chinese goods will be suspended for one year. In response, China will adjust its retaliatory measures accordingly. Both sides have also agreed to extend certain tariff exclusion measures.
2. Export Control Policies
The U.S. will suspend for one year the "50% penetration rule" on export controls announced on September 29. China, in turn, will suspend relevant export control measures issued on October 9 for the same period and will continue refining specific implementation plans.
3. Section 301 Investigation
The United States will suspend for one year trade remedy measures related to its Section 301 investigation into China's maritime, logistics, and shipbuilding sectors. China will correspondingly suspend its countermeasures for one year.
In addition, the two countries reached consensus on issues including cooperation on fentanyl-related substance regulation, expanded trade in agricultural products, and case-by-case handling of relevant companies. Both sides also reaffirmed the outcomes of the Madrid economic and trade consultations, with the U.S. making positive commitments in areas such as investment, and China expressing willingness to appropriately resolve TikTok-related issues.
The productive outcomes of the Kuala Lumpur consultations demonstrate that through dialogue and cooperation based on equality and mutual respect, China and the United States can identify viable solutions to complex issues. These hard-won achievements are expected to provide greater certainty and stability for bilateral economic and trade relations and the wider global economy.
