Explainer: Where do China-US economic and trade ties stand?

Chinese Vice Premier He Lifeng is leading a delegation to the United States for economic and trade consultations with the US side from September 19 to 23.

The two sides will hold consultations on economic and trade issues of mutual concern, guided by the important consensus reached by the two heads of state, the Chinese Ministry of Commerce (MOFCOM) announced on Saturday.

What have both sides agreed on since May?

The latest round of talks follows a series of generally balanced and positive outcomes in economic and trade relations since a historic China-US summit in Beijing on May 13-15.

These include establishing a board of trade and a board of investment, addressing each other's concerns regarding market access for agricultural products, and expanding two-way trade within the framework of reciprocal tariff reductions, according to a briefing by Chinese Foreign Minister Wang Yi following the summit.

Before the summit, China and the US held economic and trade consultations in the Republic of Korea from May 12 to 13. In outlining the preliminary outcomes on May 20, MOFCOM said that, among other things, the two sides were in close consultations over extending a joint arrangement reached in Kuala Lumpur, Malaysia, in October 2025.

Under that arrangement, the two sides agreed to suspend the implementation of certain tariff and non-tariff measures until November 10, 2026. These include the US 24% reciprocal tariffs and China's corresponding countermeasures, the US 50% penetration rule on export controls and China's related export control measures, as well as US Section 301 investigation measures targeting China's maritime, logistics and shipbuilding industries and China's corresponding countermeasures.

In a statement on July 27, MOFCOM said the US had made a clear commitment during China-US economic and trade consultations that any replacement additional tariffs on Chinese goods would not exceed 20%.

On September 10, MOFCOM spokesperson Huang Ling said that China and the US were holding consultations on a reciprocal tariff reduction framework arrangement covering $30 billion worth of products from each side, with the aim of reaching an arrangement at the earliest possible date.

Why are China-US gains generally balanced?

Gains from economic and trade relations between China and the US are generally balanced, as supported by objective data, including figures on services trade and cross-border business operations.

According to the Office of the United States Trade Representative, the US services trade surplus with China stood at $34.4 billion in 2025, up by 6.9% from 2024.

Speaking at a press conference in July, Chinese Commerce Minister Wang Wentao said that while China accounts for the largest share of the US goods trade deficit, the US is China's biggest source of services trade deficit, reflecting the complementary strengths of the two economies.

Analysts say the US goods trade deficit with China stems inevitably from structural issues in the US economy, the comparative advantages of the two countries and the global division of labor.

According to the latest estimates of the Bureau of Economic Analysis under the US Department of Commerce, US affiliates in China generated more than $640 billion in revenue in 2023.

In an analysis of the data, US think tank ITIF wrote in May that "US firms' presence in China still serves US interests because most of what their China affiliates produce is sold in China, meaning those revenues and market share go to American, rather than Chinese firms."

What are China-US business groups saying?

Both Chinese and US business organizations have been calling for expanded economic and trade cooperation.

In July, a delegation of Chinese entrepreneurs organized by the China Council for the Promotion of International Trade (CCPIT) visited Salt Lake City, Chicago and Washington to explore new areas of economic cooperation with their US counterparts.

During meetings with the American business community, Ren Hongbin, chairman of the CCPIT, welcomed US companies to take part in "China Opportunity 2.0" and stressed that the CCPIT would help facilitate stronger bilateral and multilateral practical cooperation between the two business communities to achieve greater mutual benefit and win-win outcomes.

In the 2026 China Business Report released on September 10, the American Chamber of Commerce in Shanghai, or AmCham Shanghai, said the profitability of its member companies operating in China had rebounded to its highest level since 2019, with nearly four in five respondents (78%) reporting profits in 2025, an increase of 7 percentage points from 2024.

Business confidence also bounced back markedly, with 58% of respondents expressing optimism about China's five-year business outlook, up 17 percentage points from the previous year.

Jeffrey Lehman, chair of AmCham Shanghai, attributed the gains to "steadier US-China relations" this year.

"We urge both countries to build on the momentum of recent engagement and lock in a stable, transparent framework that is conducive to cross-border trade and investment," said Lehman.