Ministry of Commerce: China and the US have reached a “30 billion to 30 billion” equal tax reduction agreement that more than 90% of products will be exempt from imposing tariffs on each other

The Zhitong Finance App learned that on September 28, the Ministry of Commerce announced the status of the Sino-US Trade Council and the “30 billion to 30 billion” equivalent tax reduction framework. It was mentioned that the two sides agreed to provide reduced tariff treatment on an equal basis on the basis of compliance with the respective domestic laws and procedures of the two sides for imported products of about 30 billion US dollars (see 2024 bilateral trade volume). More than 90% of these products will be exempt from all tariffs imposed on each other and enjoy most-favoured-nation tariff treatment.

The two sides agreed on a list of products with reciprocal tax reduction based on their respective market needs and industrial interests. The US side will reduce tariffs on about 30 billion US dollars of imported goods from China, such as toys, home appliances, baby products, kitchen and bathroom supplies, and holiday gifts. China will reduce tariffs on about 30 billion US dollars of imported goods from the US, such as agricultural products, personal care products, medical devices, and coal. The two sides agreed to jointly publish a list of their respective tax-reduced products. Subsequently, the two sides will simultaneously implement tax cuts after complying with the relevant domestic legal procedures in their respective countries. This arrangement will help stabilize trade between China and the US, create better conditions for exports of Chinese related products to the US, meet domestic market needs, and strengthen trade cooperation between the two sides in the fields of agricultural products, energy, manufactured goods, consumer goods, etc.

The original text is as follows:

The Ministry of Commerce announced the status of the Sino-US Trade Council and the “30 billion to 30 billion” equal tax reduction framework

In May 2026, the heads of state of China and the US met in Beijing and agreed to establish an intergovernmental trade council between the two sides. From September 20 to 23, China and the US held the eighth round of economic and trade negotiations in New York and Washington, D.C., and reached consensus on the Sino-US Trade Council working rules, the “30 billion to 30 billion” equal tax reduction framework responsibility documents, and a list of tax-reduced products.

According to the working regulations, the task of the Trade Council is to optimize bilateral trade. It will discuss the optimization of bilateral trade arrangements and issues affecting trade. I believe that the Trade Council will provide an important platform and institutional guarantee for China and the US to continuously lengthen the list of cooperation and reduce the list of issues in the economic and trade fields, and help stabilize the constructive strategic relationship between China and the US.

China and the US reached a consensus on a 30 billion US dollar equal tax reduction framework under the framework of the Trade Council. The two sides agreed to provide reduced tariff treatment on an equal basis on the basis of compliance with the respective domestic laws and procedures of the two sides for imported products of about 30 billion US dollars (see 2024 bilateral trade volume). More than 90% of these products will be exempt from all tariffs imposed on each other and enjoy most-favoured-nation tariff treatment.

The two sides agreed on a list of products with reciprocal tax reduction based on their respective market needs and industrial interests. The US side will reduce tariffs on about 30 billion US dollars of imported goods from China, such as toys, home appliances, baby products, kitchen and bathroom supplies, and holiday gifts. China will reduce tariffs on about 30 billion US dollars of imported goods from the US, such as agricultural products, personal care products, medical devices, and coal. The two sides agreed to jointly publish a list of their respective tax-reduced products. Subsequently, the two sides will simultaneously implement tax cuts after complying with the relevant domestic legal procedures in their respective countries. This arrangement will help stabilize trade between China and the US, create better conditions for exports of Chinese related products to the US, meet domestic market needs, and strengthen trade cooperation between the two sides in the fields of agricultural products, energy, manufactured goods, consumer goods, etc.

The two sides agreed to set up an agricultural working group under the Trade Council to discuss relevant issues including regulation and market access, address trade concerns, and expand practical cooperation in the agricultural field. The Agriculture Working Group plans to hold its first meeting before the end of 2026. China will continue to push for the US to resolve China's concerns in the agricultural sector through working group meetings.

Sino-US Trade Council Work Regulations

September 27, 2026

introduction

Earlier, China and the US agreed to establish an intergovernmental “Sino-US Trade Council.”

This document describes the agreed working procedures of the Trade Council, including its tasks, organizational members, leadership structure, responsibilities, meeting arrangements and documentation arrangements.

quests

The task of the Trade Council is to optimize bilateral trade.

China and the United States have agreed to engage in dialogue under the Trade Council to consider the respective lists of imported products of about 30 billion US dollars agreed upon by the two sides, with a view to providing reduced tariff treatment for these products in an equal manner on the basis of compliance with the respective domestic laws and procedures of the two sides.

According to the plan, the Trade Council will also consider other potential arrangements to optimize bilateral trade.

Organization members

The trade council will be composed of Chinese and US government officials.

Leadership structure

The Trade Council will be overseen by leaders from both sides. The Chinese leaders are Vice Premier He Lifeng, and the US leaders are Treasury Secretary Scott Bessent and US Trade Representative Jamison Greer.

Responsibilities

The Chinese and US leaders' deputies, with the assistance of the work team, will be responsible for formulating recommendations for the leaders' consideration.

The Deputy's initial task is to develop a proposed plan for trade in selected products for consideration by the leaders, with a view to providing reduced tariff treatment for these products in a reciprocal manner on the basis of compliance with the respective domestic laws and procedures of the two parties.

Deputies may discuss other potential arrangements to optimize bilateral trade, including the establishment of working groups within the framework of trade councils, such as working groups on agriculture. As appropriate, the deputy may make suggestions to the lead person for consideration.

Deputies can also discuss other issues affecting bilateral trade.

Meeting schedule

The lead will meet as necessary to consider suggestions made by the Deputy.

Deputies will meet at least quarterly to perform their functions.

The two work teams will hold regular meetings to assist the deputy in their work.

The frequency of meetings may be increased or decreased as appropriate.

“30 billion to 30 billion” framework responsibility document

September 27, 2026

China and the US have reached an understanding on the following duty documents for the implementation of the “30 billion to 30 billion” framework by the Sino-US Trade Council:

Earlier, China and the US agreed to establish an intergovernmental “Sino-US Trade Council.” The two sides also agreed that the initial focus of the work of the Trade Council is to carry out dialogue and consider the lists of imported products of about 30 billion US dollars each agreed upon by the two sides, with a view to providing reduced tariff treatment for these products in an equal manner. The two sides further agreed to clearly include specific products within the “30 billion to 30 billion” framework as soon as possible.

With the assistance of the work team, the leaders of China and the US have drawn up a list of recommended products to be included in the “30 billion to 30 billion” framework for the leaders to consider. The leaders have approved two lists of products of equal value, including a list of Chinese products imported from the US and a list of US products imported from China. The value of the products in the two lists is determined by reference to the 2024 bilateral trade volume. In the future, tariff reductions for products included in the two approved lists will be determined and implemented in accordance with the respective domestic legal procedures.

The Deputy, with the assistance of the working team, will monitor and evaluate bilateral trade in products covered by this arrangement and may recommend appropriate adjustments for consideration by the lead. The two sides do not expect to make adjustments more often than once a year.

The deputy may discuss the possibility of increasing the number of products in the future to expand the size of this arrangement and make recommendations to the lead person as appropriate.

This article was selected from the “Ministry of Commerce” official website, Zhitong Finance Editor: Chen Siyu.