The US also committed to lifting an additional 10 per cent “fentanyl tariffs” on Chinese goods, the commerce ministry said, adding that China would adjust its own trade measures in response.
“The talks have mapped out some paths and prospects for the future, since follow-up discussions between the two working teams will still be needed,” said Sun Chenghao, a fellow at Tsinghua University’s Centre for International Security and Strategy.
Citing the example of the 10 per cent tariff reduction, Sun said it is “meaningful” because it “finally touches on the essence of tariffs”.
“In the previous five rounds of talks, there had been no direct tariff cuts, but this time there was … it also leaves room for future negotiations on both sides,” he added.
Export control relief also featured in the package.
Washington agreed to suspend for one year a rule extending export restrictions to any foreign company half-owned or more by a US-sanctioned firm, a measure that had swept up many Chinese firms.
Beijing, for its part, said it would pause its related export control measures announced on Oct 9, which covered rare earth materials, equipment and technologies. Instead, it will now “study and refine” future implementation steps.
“The one-year suspension is outside of market expectations,” said Su. “But I think it gives both sides pressure to work on delivering what they have promised.”
As Trump flew back to Washington, he said on social media that Xi had authorised purchases of “massive amounts” of soybeans and other American agricultural products.
“But we know during Trump’s first term, China didn’t really live up to its promise,” added Su.
Back in 2020, President Trump signed what he called a “historical trade deal” committing China to purchase US$200 billion in additional US exports before the end of 2021.
That target was never met. In the end, China bought only 58 per cent of the pledged amount – not even enough to return to pre-trade war import levels, according to research from the Peterson Institute for International Economics.
ANY SURPRISES – AND WHAT WASN’T DISCUSSED
At the Busan talks, Washington and Beijing also reaffirmed earlier agreements from trade talks in Madrid, including US commitments on investment and a Chinese pledge to “properly address” TikTok-related issues.
But perhaps more revealing was what didn’t make it into the formal discussions.
Topics such as Taiwan, human rights and the South China Sea were notably absent – a reflection, analysts said, of a concerted effort by both sides not to derail the fragile stabilisation of ties.
Lim Tai Wei, an East Asian affairs observer and professor at Soka University, said those issues were deliberately kept off the table.
“The focus was on lifting or suspending restrictions. Other things can be done through other channels, and the most important thing is not to let them derail the main priorities,” he said, adding that both governments are working toward a high-profile visit by Trump to China next year.
https://www.channelnewsasia.com/east-asia/trump-xi-summit-busan-china-us-competition-rivalry-5435541
