The China-U.S. consultations in Kuala Lumpur reached a basic consensus, and the U.S. side announced that it would no longer consider imposing a 100% tariff on China.

According to the latest reports, U.S. Treasury Secretary Besant stated after the U.S.-China economic and trade consultations that ended in Kuala Lumpur on October 26 that the U.S. is "no longer considering" imposing a 100% tariff on China, and noted that both sides reached a "very substantive framework agreement." This round of consultations held in Kuala Lumpur, Malaysia, was the fifth face-to-face meeting between the U.S. and Chinese economic and trade teams since May of this year. 📈 Background and Core Issues of the Consultations This round of consultations in Kuala Lumpur took place against the backdrop of recent fluctuations in U.S.-China economic and trade relations. The U.S. had previously threatened to impose an additional 100% tariff on Chinese goods starting November 1, citing reasons including China's export controls on key rare earths. The consultations covered a number of complex and critical issues, primarily including the U.S. 301 measures on China's maritime logistics and shipbuilding industries, further extending the suspension period of reciprocal tariffs, issues related to fentanyl (including tariffs and drug cooperation), further expanding trade, and export controls from both sides. Li Chenggang, the international trade negotiation representative and vice minister of the Ministry of Commerce of China, pointed out in summarizing this round of consultations that the characteristics of the talks were that "the U.S. side expressed a tough stance, while the Chinese side firmly defended its interests." 🤝 Interpretation of Results and Future Steps Treasury Secretary Besant described this meeting as "constructive, far-reaching, and in-depth," and stated that after a "very good" meeting, the plan for tariff escalation "is no longer on the table." Both sides announced that they had reached a "preliminary consensus" or "basic consensus" on arrangements to address each other's concerns. This means that the suspension period for the "reciprocal tariffs," which was originally set to expire on November 10, is expected to be extended, thus avoiding an imminent tariff conflict. The next step is for both sides to further determine specific details and to carry out their respective domestic approval procedures to translate the consensus into concrete results. 🌍 Significance for Bilateral Relations and the Global Economy This progress marks an important step towards stabilizing U.S.-China economic and trade relations. Both sides agreed to continue to fully utilize the U.S.-China economic and trade consultation mechanism under the strategic guidance of the leaders of both countries, maintaining close communication on their respective concerns in the economic and trade fields, with the aim of promoting the healthy, stable, and sustainable development of U.S.-China economic and trade relations. As the two largest economies in the world, the easing of trade tensions between the U.S. and China helps stabilize global market expectations and has positive implications for promoting global economic recovery and development.