The Chinese Ministry of Commerce has officially announced it.
On October 18, the Chinese Ministry of Commerce announced that after a long-distance video call between Chinese representatives and U.S. Finance Minister Bessent, the two sides agreed to hold a new round of economic and trade negotiations as soon as possible.
The news comes out that many people who are concerned about the dynamics of the Sino-U.S. economic trade are thinking behind the doorway. After all, this is not the first time that the two sides sit down and talk, but can be clearly "held as soon as possible", clearly means that both sides have the will to advance.
To understand the significance of this phone call, we must first look at the recent background. The economic pressure on the US side is not small. The latest data shows that although the inflation rate in the United States has dropped, the prices of core commodities are still hovering at high levels. As an important commodity supplier to the United States, China exports a large number of mechanical and electrical products, light industrial products and raw materials to the United States every year. These commodities are directly related to the price stability of the U.S. market and also affect the production cost of the U.S. manufacturing industry.
The voice of the American agricultural community is strong, soya, corn and other agricultural products exports to China, is an important pillar of the U.S. agricultural state economy. In the first few months, the U.S. soybean association also specifically sent a letter to the U.S. finance minister, calling for the improvement of the trade environment with China as soon as possible.
China has also clear concerns, the U.S. technology export restrictions to China has always been an unavoidable topic. Many of China's high-tech enterprises urgently needed chips, equipment and other products, are still listed on the control list. This not only restricts the development of Chinese enterprises, but also leads U.S. relevant enterprises miss the huge Chinese market. In addition, the U.S. unilateral sanctions on some Chinese entities, also affects normal economic and trade cooperation, China has repeatedly mentioned this in bilateral occasions.
In fact, the interaction between the two sides has long been paved, last month, the working class in the economic and trade field had informal communication. At the time, the two sides mainly exchanged views on each other's economic and trade policies, laying the basis for this high-level video call.
Some analysts believe that a new round of negotiations may focus on several core issues. The first is agricultural trade. China may consider expanding the procurement of U.S. soybeans and wheat, but it is assumed that the U.S. will remove unreasonable export restrictions. The second is the field of technical cooperation. China is likely to ask the U.S. to relax the export of high-tech products to China, especially in the fields of new energy, semiconductor manufacturing equipment and so on. The third is the tariff issue. The two sides may start consultations on the tariff reduction of some goods, which is beneficial to mitigate U.S. inflation and reduce the export costs of Chinese enterprises.
Historical experience tells us that Sino-US economic and trade issues are intertwined, and some "hard bones" can't be chewed down once or twice. For example, intellectual property protection, market access and other issues, there are still differences in cognition between the two sides. But being able to sit down and talk is a positive signal in itself. After all, confrontation has never been the best solution in the economic and trade field.
China mentioned in the statement that negotiations should be based on the principles of mutual respect and equal mutual benefit.This statement is not easy.This means that China will not accept the unilateral terms of the United States, and all consensus must be the result of negotiations between the two sides.
U.S. Finance Secretary Bessent also told the media after the call that the U.S. is willing to resolve the differences through dialogue, which is a determination to the market.
For the global economy, the resumption of economic and trade negotiations between China and the United States is also good news. The current global economic recovery is weak. As the world's top two economies, the stability of economic and trade relations between China and the United States directly affects the smooth flow of global supply chains and economic growth expectations. Many international organizations have expressed their expectation that China and the United States can achieve substantive results through negotiations and inject impetus into the global economy.
Of course, the specific time and place of the negotiations have not yet been announced.But from the four words "to be held as soon as possible" it can be seen that the two sides do not want to delay.The United States needs to ease domestic economic pressure by improving trade with China, while China hopes to break the technological blockade and safeguard the legitimate rights and interests of enterprises.
After all, the essence of economic and trade cooperation is mutual benefit and win-win. The friction of the past few years has proved that tariffs and barriers will only be defeated. This time the two sides agreed to resume negotiations, both a real pressure push and a rational return.
On October 18, the Chinese Ministry of Commerce announced that after a long-distance video call between Chinese representatives and U.S. Finance Minister Bessent, the two sides agreed to hold a new round of economic and trade negotiations as soon as possible.
The news comes out that many people who are concerned about the dynamics of the Sino-U.S. economic trade are thinking behind the doorway. After all, this is not the first time that the two sides sit down and talk, but can be clearly "held as soon as possible", clearly means that both sides have the will to advance.
To understand the significance of this phone call, we must first look at the recent background. The economic pressure on the US side is not small. The latest data shows that although the inflation rate in the United States has dropped, the prices of core commodities are still hovering at high levels. As an important commodity supplier to the United States, China exports a large number of mechanical and electrical products, light industrial products and raw materials to the United States every year. These commodities are directly related to the price stability of the U.S. market and also affect the production cost of the U.S. manufacturing industry.
The voice of the American agricultural community is strong, soya, corn and other agricultural products exports to China, is an important pillar of the U.S. agricultural state economy. In the first few months, the U.S. soybean association also specifically sent a letter to the U.S. finance minister, calling for the improvement of the trade environment with China as soon as possible.
China has also clear concerns, the U.S. technology export restrictions to China has always been an unavoidable topic. Many of China's high-tech enterprises urgently needed chips, equipment and other products, are still listed on the control list. This not only restricts the development of Chinese enterprises, but also leads U.S. relevant enterprises miss the huge Chinese market. In addition, the U.S. unilateral sanctions on some Chinese entities, also affects normal economic and trade cooperation, China has repeatedly mentioned this in bilateral occasions.
In fact, the interaction between the two sides has long been paved, last month, the working class in the economic and trade field had informal communication. At the time, the two sides mainly exchanged views on each other's economic and trade policies, laying the basis for this high-level video call.
Some analysts believe that a new round of negotiations may focus on several core issues. The first is agricultural trade. China may consider expanding the procurement of U.S. soybeans and wheat, but it is assumed that the U.S. will remove unreasonable export restrictions. The second is the field of technical cooperation. China is likely to ask the U.S. to relax the export of high-tech products to China, especially in the fields of new energy, semiconductor manufacturing equipment and so on. The third is the tariff issue. The two sides may start consultations on the tariff reduction of some goods, which is beneficial to mitigate U.S. inflation and reduce the export costs of Chinese enterprises.
Historical experience tells us that Sino-US economic and trade issues are intertwined, and some "hard bones" can't be chewed down once or twice. For example, intellectual property protection, market access and other issues, there are still differences in cognition between the two sides. But being able to sit down and talk is a positive signal in itself. After all, confrontation has never been the best solution in the economic and trade field.
China mentioned in the statement that negotiations should be based on the principles of mutual respect and equal mutual benefit.This statement is not easy.This means that China will not accept the unilateral terms of the United States, and all consensus must be the result of negotiations between the two sides.
U.S. Finance Secretary Bessent also told the media after the call that the U.S. is willing to resolve the differences through dialogue, which is a determination to the market.
For the global economy, the resumption of economic and trade negotiations between China and the United States is also good news. The current global economic recovery is weak. As the world's top two economies, the stability of economic and trade relations between China and the United States directly affects the smooth flow of global supply chains and economic growth expectations. Many international organizations have expressed their expectation that China and the United States can achieve substantive results through negotiations and inject impetus into the global economy.
Of course, the specific time and place of the negotiations have not yet been announced.But from the four words "to be held as soon as possible" it can be seen that the two sides do not want to delay.The United States needs to ease domestic economic pressure by improving trade with China, while China hopes to break the technological blockade and safeguard the legitimate rights and interests of enterprises.
After all, the essence of economic and trade cooperation is mutual benefit and win-win. The friction of the past few years has proved that tariffs and barriers will only be defeated. This time the two sides agreed to resume negotiations, both a real pressure push and a rational return.