Xinhua: China and the United States Reach Consensus to Suspend Implementation of Section 301 Measures for One Year

Spokesperson of the Ministry of Commerce Answers Questions on the Joint Arrangement Reached During the China-U.S. Economic and Trade Consultations in Kuala Lumpur
 

Q: It is understood that China and the United States have reached a joint arrangement in Kuala Lumpur on addressing their respective economic and trade concerns. Could the Ministry of Commerce provide more details on the consensus reached during the Kuala Lumpur consultations?
 

A: The heads of state of China and the United States have just held a meeting in Busan, the Republic of Korea, where they conducted in-depth discussions on China-U.S. economic and trade relations and other issues, and agreed to strengthen cooperation in these areas. China is willing to work together with the United States to maintain and implement the important consensus reached between the two heads of state.
 

Through the consultations in Kuala Lumpur, the Chinese and U.S. economic and trade teams reached the following main outcomes:
 

First, the U.S. side will cancel the additional 10% "fentanyl tariff" imposed on Chinese goods (including those from the Hong Kong Special Administrative Region and the Macao Special Administrative Region). The additional 24% reciprocal tariff imposed on Chinese goods (including those from the Hong Kong SAR and Macao SAR) will continue to be suspended for one year. The Chinese side will accordingly adjust its countermeasures against the above U.S. tariffs. Both sides agreed to continue extending certain tariff exclusion measures.
 

Second, the U.S. side will suspend for one year the implementation of its 50% penetration rule on export controls announced on September 29. The Chinese side will suspend for one year the implementation of related export control and other measures announced on October 9, and will study and refine specific implementation plans.
 

Third, the U.S. side will suspend for one year the implementation of its Section 301 investigation measures targeting China’s maritime, logistics, and shipbuilding industries. Following the U.S. suspension of these measures, the Chinese side will also suspend its corresponding countermeasures against the United States for one year.
 

In addition, both sides reached a consensus on cooperation in combating fentanyl-related drugs, expanding agricultural trade, and addressing specific corporate cases. The two sides further reaffirmed the results of the Madrid economic and trade consultations, under which the U.S. side made positive commitments in the investment field, and the Chinese side will work with the U.S. side to properly resolve issues related to TikTok.
 

The China-U.S. economic and trade consultations in Kuala Lumpur have achieved positive results, fully demonstrating that by adhering to the principles of equality, mutual respect, and reciprocity, and through dialogue and cooperation, the two sides can find ways to resolve problems. These outcomes were hard-won. China looks forward to working with the United States to implement them well, injecting greater certainty and stability into China-U.S. economic and trade cooperation and into the global economy.
 

(Xinhua, Beijing, October 30)