Editor's note: Wu Zewei is a research fellow at Star Atlas Institute of Finance and a specially appointed research fellow at Jiangsu Su Merchants Bank The article reflects the author's opinion and not necessarily the views of CGTN.

In September, the Chinese and US economic and trade teams reached consensus on 10 major outcomes following consultations in New York and Washington from September 20 to 23.

The biggest takeaway from this round of consultations is a major breakthrough in institution building.

Progress on three platforms - the trade council, the investment council and a dialogue on artificial intelligence (AI) — not only provided concrete economic substance for the meeting between the two heads of state, but also laid a firmer institutional foundation for the long-term stability of China-US economic and trade relations.

Among these three platforms, the China-US Board of Trade was established under the China-US economic and trade consultation mechanism, with the primary goal of optimizing bilateral trade. It will advance follow-up discussions on the "30-for-30" reciprocal tariff reduction framework, and a dedicated working group on agriculture has also been established. The China-US Board of Investment will engage in regular dialogue on potential investment opportunities and barriers, enhance policy transparency and predictability in accordance with each country's laws and regulations, and address legitimate business concerns. The dialogue on AI, led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent, has already held its first round. The two sides exchanged views on AI-related risks and benefits and agreed to establish a communication channel for AI-related incidents. 

Together, the three platforms span trade, investment and technology, creating dedicated channels for bilateral communication in each area. The establishment of these three channels addresses a major weakness in China-US economic and trade relations over the past few years.

Previously, when major shocks such as tariffs, export controls or entity listings occurred, gaps in regular communication often led the two sides to resort to ad hoc consultations. With standing councils and dialogue mechanisms now in place, many specific issues can first be addressed at the working level rather than escalated to high-level talks every time. 

The trade council can focus on specific product lists for tariff reductions and broader measures to enhance bilateral trade. The investment council can address market access barriers and legitimate business concerns. The AI dialogue can focus on risk management and the benefits of technological development. Each platform will fulfill its respective role. Once operational, these communication mechanisms will allow many points of friction to be managed and addressed through regular dialogue, significantly strengthening the resilience of China-US economic and trade relations.

The "30-for-30" reciprocal tariff reduction framework is a standout outcome from this round of talks that directly benefits businesses.

After multiple rounds of consultations, China and the United States have agreed to reduce tariffs on about $30 billion worth of goods imported from each other on a reciprocal basis, with tariffs on more than 90% of the covered products to be lowered to most-favored-nation rates. The two sides will implement the tariff reductions simultaneously after completing their respective domestic legal procedures. 

The key significance of this arrangement lies in establishing a new model for negotiating reciprocal tariff reductions. Given the deeply intertwined nature of China-US tariff issues, an all-at-once, comprehensive resolution is unrealistic. A reciprocal, phased and scalable approach provides flexibility for further tariff reductions in the future. The trade council is expected to build on this consensus moving forward. This will not only help stabilize China-US economic and trade ties, but also foster more favorable conditions for expanding Chinese exports to the United States.

The inclusion of US coal in the tariff reduction framework represents an important addition to the list of covered products. Once the tariff cuts take effect, China will have more favorable conditions for importing US coal in 2027 and 2028. For China, this provides a useful supplement to the domestic coal market, diversifies its sources of energy imports and helps meet domestic demand for specific types of coal. For US coal-producing regions, this translates into more predictable order flows and greater job stability. This arrangement therefore delivers tangible benefits to both China and the United States. Moreover, incorporating coal into the "30-for-30" framework demonstrates that reciprocal tariff cuts are moving from a general concept toward product-specific implementation, making the framework more practical.

The consensus in principle reached on financial services sends a clear signal of greater certainty around market opening. In recent years, China has continued to advance the opening of its financial services sector, a move widely recognized by the international community, with numerous US financial institutions already benefiting from these measures. China explicitly affirmed that, in accordance with relevant laws and regulations, it will process applications from US and other foreign financial institutions to expand operations and establish branches in China. At the same time, China expects the United States to provide a fair, transparent and stable policy environment for Chinese financial institutions. For multinational financial institutions, predictable approval procedures and a stable regulatory environment are often far more important than short-term tax breaks. The investment council's regular dialogue on investment barriers will also provide a sustained channel for following up on and addressing such concerns. Meanwhile, reciprocal market opening in financial services is an integral part of deepening China-US economic and trade relations.

The establishment of the working group on agriculture builds on progress made during consultations in May this year. At that time, China and the US reached constructive consensus on key non-tariff barriers and market access for agricultural products. In this latest round, agricultural issues have been incorporated into the trade council's framework through a working group co-led by China's Ministry of Commerce and the Office of the United States Trade Representative, with participation from relevant regulatory agencies on both sides. The working group's inaugural meeting is scheduled to take place before the end of 2026. Agriculture is a highly sensitive area in China-US economic and trade relations and is frequently subject to political headwinds. With the working group as a dedicated platform, specific market-access and regulatory issues can now be addressed systematically at the technical level.

Extending the Kuala Lumpur joint arrangement to January 10, 2027, continuing discussions on increasing direct passenger flights, and reaffirming commitments to implementing earlier agreements primarily serve to maintain operational continuity and strategic stability. In October 2025, China and the United States reached a joint arrangement in Kuala Lumpur to suspend certain tariff and non-tariff measures through November 10, 2026. This two-month extension provides both sides with room to evaluate implementation progress and map out next steps. On direct passenger flights, both sides remain in ongoing dialogue and have agreed to continue exchanging views on expanding flight capacity and related arrangements. Before this latest round, seven rounds of economic and trade consultations since last year had yielded a series of balanced and mutually beneficial outcomes. In this latest round, both sides reaffirmed their commitment to fully implementing all prior agreements, offering businesses more predictable policy expectations.

Once the mechanisms are established, the key is how they operate.

The trade council's working procedures have now been published. The investment council is intended to provide a regular channel for dialogue on investment opportunities and barriers. The next round of the dialogue on AI is scheduled to take place by the end of November 2026. The working group on agriculture is also scheduled to hold its inaugural meeting before the end of 2026. Whether these timelines are met and whether these councils can truly function as problem-solving platforms will require sustained political will and professional resources from both China and the United States. While the institutional framework is now in place, specific rules, agendas and operating methods must be fleshed out through successive consultations. 

The complexity of China-US economic and trade relations means that building these mechanisms cannot be achieved overnight. Their actual effectiveness will ultimately depend on their ability to address concrete issues.

Viewed against the broader backdrop of China-US relations, the significance of this round of consultations extends far beyond economics and trade. At a time when the global economy faces mounting uncertainty and rising unilateralism and protectionism, China and the United States, as the world's two largest economies, have taken steps to institutionalize dialogue across key areas such as trade, investment and artificial intelligence, while negotiating reciprocal tariff reductions and expanding product-specific trade. That in itself carries important signaling value. 

Economic and trade relations have long served as a vital anchor of stability in China-US relations. Building these mechanisms solidifies that foundation and provides sustained momentum for future cooperation. The summit between the two heads of state charted the strategic direction for economic and trade cooperation. This round of consultations has translated that direction into actionable institutional arrangements and concrete deliverables.