(May 20): China said it will continue negotiating with the US to extend a trade truce reached last October, as ties between the world’s two largest economies further stabilise.
Trade teams from both countries will discuss extending the one-year agreement negotiated in Kuala Lumpur, China’s Commerce Ministry said in a statement on Tuesday. The sweeping deal was later announced in a leaders’ summit in Busan, South Korea, that led to a suspension of some tariffs, rare earth curbs and investigations into China’s shipbuilders until November this year.
The ministry signalled Beijing would accept US tariffs provided they do not exceed the level set after the Malaysia negotiation that brought effective tariff rate to about 30%, later reduced to an estimated 21% after the US Supreme Court struck down some levies. The Trump administration has sought new Section 301 investigations to return tariffs to the level before the court ruling.
The announcement follows US President Donald Trump’s state visit to Beijing last week. The Commerce Ministry listed other outcomes from trade talks held just prior to Trump’s summit with Chinese leader Xi Jinping, including China’s purchase of 200 Boeing aircraft and the creation of new councils to manage trade and investment.
The benchmark CSI 300 Index of onshore stocks partially pared its losses after the statement was released.
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