China says talks with US yielded agreement to reduce levies
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China said Beijing and Washington will adopt a series of measures, including mutually cutting levies on certain products, to expand bilateral trade.
PHOTO: AFP
BEIJING – China and the US agreed to lower levies on some products to promote bilateral trade, according to a statement from China’s Commerce Ministry.
The ministry issued the statement on May 16 following a two-day summit in Beijing between US President Donald Trump and Chinese leader Xi Jinping.
China said Beijing and Washington will adopt a series of measures, including mutually cutting levies on certain products, to expand bilateral trade in areas including agriculture.
It didn’t provide more specifics, adding that both teams are still currently negotiating over the details.
Mr Trump had suggested that tariffs didn’t come up in his meetings with Mr Xi.
“We didn’t discuss tariffs,” Mr Trump told reporters on May 15 aboard Air Force One. “They’re paying substantial tariffs, but we didn’t discuss.”
Bloomberg Economics, in a report issued on May 15, said it remains unclear where tariffs will land.
If the US follows through on its stated intent to reimpose the previous reciprocal rates, “China would see an increase of about 10 per cent in its tariff rate, which could prompt retaliation.”
The statement confirmed China’s plan to purchase US planes, although it didn’t provide a number or the brand.
Mr Larry Culp, the chief executive of GE Aerospace, and Mr Kelly Ortberg, the CEO of Boeing Co, travelled with Mr Trump to the summit in Beijing and met with state officials there.
China also said it would actively address US concerns on import licences for its beef plants, as well as issues related to poultry imports from certain US states.
The Commerce Ministry reiterated that the two sides agreed to establish boards of investment and trade to discuss concerns.
US Trade Representative Jamieson Greer said earlier that the two sides had discussed creating a “Board of Trade” that would see tariffs reduced on at least US$30 billion (S$38.42 billion) in non-critical goods.
China said the US will address Beijing’s concerns on the automatic detention of dairy and aquatic products from China, the export of potted plants to the US, and the designation of Shandong as a Highly Pathogenic Avian Influenza-free zone.
The US Food and Drug Administration currently detains all dairy products from China due to the presence of melamine substances, and some aquatic products due to unapproved drugs.
That essentially means the products will be refused entry unless importers can prove their case.
The outcome shows that both countries “can find solutions to the problems through dialog and cooperation,” the Commerce Ministry said in the statement, noting the details were discussed during trade talks in South Korea ahead of Mr Xi’s meeting with Mr Trump. BLOOMBERG
