China-US economic and trade talks in Kuala Lumpur yielded substantive results, with the US canceling the 10 percent so-called 'fentanyl tariffs' and extending the suspension of 24 percent reciprocal tariffs for another year. China will adjust its countermeasures accordingly. Businesses on both sides say this will inject new momentum into stabilizing bilateral trade ties.
The China-US trade talks began in Geneva and later moved to London, Stockholm, and Madrid, creating months of uncertainty. For Xiong Xujia, a foreign trade manager at Ningbo Tianxiang Electrical Appliances Co Ltd in Ningbo, Zhejiang province, the period from May to September became a season of uneasy waiting. The company, a cookware manufacturer, supplies clients in the United States.
The Kuala Lumpur talks concluded in late October with consensus on tariff adjustments and export controls, temporarily defusing escalation risks. According to China's Ministry of Commerce, the US will cancel the 10 percent so-called 'fentanyl tariffs' and extend the suspension of 24 percent reciprocal tariffs on Chinese goods for another year. China will make corresponding adjustments to its countermeasures, and both sides agreed to extend certain tariff exclusion measures.
'With the latest round of China-US economic and trade talks producing a series of substantive outcomes and areas of consensus, we are more convinced that openness and cooperation are the path to shared success,' said Xiong. The company exported 172 million yuan worth of products, including toasters, sandwich makers, and waffle makers, to the US in the first 10 months of this year, up 14.8 percent year-on-year, per Ningbo Customs.
Bilateral trade reached 3.38 trillion yuan from January to October, down 15.9 percent year-on-year and accounting for 9 percent of China's total foreign trade, according to the General Administration of Customs. Liu Ying, a researcher at Renmin University of China's Chongyang Institute for Financial Studies, said the outcome demonstrates both sides' commitment to stabilizing one of the world's most important economic relationships.
Peng Bo, a researcher at the Chinese Academy of International Trade and Economic Cooperation, noted that long-term normalization requires following through on commitments and keeping communication open. During his November 20 meeting with US Ambassador to China David Perdue, Chinese Commerce Minister Wang Wentao expressed willingness to implement key consensuses reached by the two heads of state and foster perceptions of coexistence and win-win outcomes.
Liu Siqiang, vice-president of Winhere Auto-Part Manufacturing Co Ltd in Yantai, Shandong province, said the company exported 1.82 billion yuan worth of goods to the US from January to October, up 17 percent year-on-year. He added that a healthy and stable China-US economic relationship serves as a common aspiration and crucial foundation for business development.
On the US side, Jim Sutter, CEO of the US Soybean Export Council, hopes to resume soybean exports to China soon and highlighted soy's innovative applications in green manufacturing. Sean Stein, president of the US-China Business Council, stated that most US companies remain committed to the Chinese market, with no significant increase in departures over the past nine or 10 months.
US industrial conglomerate 3M launched an expansion for its tape production line in Shanghai in August, boosting capacity by 50 percent. Ingersoll Rand noted that over 95 percent of its products sold in China are locally manufactured. FedEx introduced nonstop cargo flights from Guangzhou to Penang in mid-November to enhance intra-Asia connectivity amid growing China-Southeast Asia trade.