China, US Agree 2 Trade Councils and Tariff Cuts in Preliminary Economic Deal
Updated
Updated · CGTN · May 23
China, US Agree 2 Trade Councils and Tariff Cuts in Preliminary Economic Deal
5 articles · Updated · CGTN · May 23
China and the United States agreed to set up a trade council and an investment council, marking a new institutional framework in preliminary economic and trade outcomes announced after talks.
Seven rounds of consultations since May 2025 produced agreements on cutting tariffs on some products, advancing solutions to non-tariff barriers, and improving market access for certain agricultural goods.
The package also includes China's procurement of US aircraft and a US commitment to supply aircraft engines and related components, extending the deal beyond tariffs into industrial trade.
Officials cast the outcomes as a way to reduce uncertainty created by US tariff measures in 2025, giving businesses in both countries more predictability and shifting ties toward managed competition.
With the two economies accounting for about 42% of global output in 2024, steadier China-US trade relations could help stabilize supply chains, trade flows and broader market confidence.
What unstated concessions secured China's multi-billion dollar aircraft and agriculture commitments?
With major security issues unresolved, is this trade deal a true turning point or just a temporary economic truce?
As 'managed competition' begins, can new councils prevent a future clash over technology and intellectual property?
US-China Economic Truce 2026: Fragile Stability, Persistent Rivalry, and the Global Impact of the Preliminary Trade Deal
Overview
In May 2026, the United States and China reached a preliminary economic agreement in Beijing, marking a major shift in their economic relationship. Central to this deal is the creation of a board of trade and a board of investment, which will serve as permanent frameworks for managing commerce and capital flows between the two countries. This move signals a transition from ad-hoc negotiations to structured, ongoing engagement, reflecting a mutual desire to stabilize economic relations, enhance predictability, and provide clearer channels for resolving disputes. These new institutions set the stage for how future US-China economic interactions will be governed.