China-U.S. economic relations show signs of warming as both sides resolve differences through dialogue based on mutual respect, injecting stability into global trade expectations.

On October 30 local time, the leaders of China and the United States held talks in Busan, South Korea, engaging in in-depth discussions on bilateral economic and trade relations and agreeing to strengthen cooperation in these and other areas.

This marks the first meeting between President Xi Jinping and President Trump in six years, as well as the first summit between the two leaders since President Trump began his second term.

Building on the Busan meeting, the economic and trade teams of China and the U.S. reached multiple consensus points during consultations in Kuala Lumpur. **The U.S. will cancel the 10% “fentanyl tariff” imposed on Chinese goods**, and the 24% reciprocal tariffs imposed on Chinese goods will remain suspended for another year. China will correspondingly adjust its countermeasures against the aforementioned U.S. tariffs.

 01 Outcomes of Sino-US Economic and Trade Consultations

According to the Ministry of Commerce spokesperson, the outcomes reached by the Sino-US economic and trade teams through the Kuala Lumpur consultations primarily encompass three major areas.

Regarding tariff measures, the US will remove the 10% so-called “fentanyl tariff” imposed on Chinese goods (including those from the Hong Kong Special Administrative Region and the Macao Special Administrative Region).

The 24% reciprocal tariffs imposed on Chinese goods will remain suspended for one year, and China will adjust its countermeasures against these U.S. tariffs accordingly.

Both sides agreed to extend certain tariff exclusion measures.

Regarding export controls**, the U.S. will suspend for one year the implementation of its 50% penetration rule for export controls announced on September 29.

China will suspend for one year the implementation of relevant export control measures announced on October 9 and will study and refine specific plans.

Regarding Section 301 investigation measures, the U.S. will suspend for one year the implementation of its Section 301 investigation measures against China's maritime, logistics, and shipbuilding industries.

Following the U.S. suspension of these measures, China will correspondingly suspend its countermeasures against the U.S. for one year.

Additionally, both sides reached consensus on fentanyl drug control cooperation, expanding agricultural trade, and addressing specific cases involving relevant enterprises.

Both sides further confirmed the outcomes of the Madrid economic and trade consultations. The U.S. made positive commitments in areas such as investment, and China will work with the U.S. to properly resolve issues related to TikTok.

02 Meeting Context and Key Details

The Busan meeting lasted approximately one hour and 40 minutes, during which both sides engaged in in-depth discussions.

President Xi Jinping noted during the meeting that differences between China and the U.S. are inevitable given their distinct national conditions. As the world's two largest economies, occasional frictions are normal.

He stressed that **in the face of storms and challenges**, the two leaders, as helmsmen, should steer the course and navigate the overall situation, ensuring the steady progress of the China-U.S. relationship.

Xi stated that China's development and rejuvenation are not incompatible with President Trump's goal of “Making America Great Again,” and **China and the U.S. can fully achieve mutual success and shared prosperity**.

The outcomes of the Busan meeting and the Kuala Lumpur consultations complement each other, signaling a phased stabilization in China-U.S. economic and trade relations.

From a timing perspective, the one-year truce coincides with the U.S. midterm elections, potentially reflecting President Trump's intent to maintain relative stability in the economic and trade environment before the elections.

 03 The Practical Significance of Win-Win Cooperation

The positive outcomes of the Kuala Lumpur economic and trade consultations demonstrate that through dialogue and cooperation guided by principles of equality, mutual respect, and reciprocity, both sides can find solutions to their challenges.

Luo Zhiheng, Chief Economist and Director of the Research Institute at Yue Kai Securities, noted that the series of reciprocal and mutually beneficial arrangements reached in these consultations extend beyond merely easing tensions temporarily.

but also clearly signifies that U.S.-China economic relations have entered a new phase of strategic engagement.

Reviewing the entire process of this round of U.S.-China economic competition, China has successfully transitioned from its previous cautious approach to a current strategic interaction characterized by mutual offense and defense through a series of firm and strategically clear countermeasures.

Yang Chang, Chief Analyst of the Policy Group at Zhongtai Securities Research Institute, stated that the outcomes—including a phased easing of tariffs and export controls—are expected to shift market sentiment from concern to risk appetite recovery following confirmation.

 04 Future Outlook

Throughout the Sino-US trade competition, the strategic vulnerabilities of the Trump administration have become apparent across multiple rounds of bilateral talks and multilateral economic frameworks.

The core issues center on two key sectors where the U.S. exhibits high dependence on the Chinese market: agriculture and rare earths.

He Wenping, Professor at the Chinese Academy of Social Sciences and international affairs expert, pointed out that competition in the technology sector between China and the U.S. persists, and given the uncertainty in U.S. policies, **China must remain vigilant** and develop contingency plans in advance.

This will enable an effective response to potential shifts in the situation. Su Hao, senior researcher at the Chahar Institute, cautioned that with the tariff suspension extended for another year, China must continue enriching its “toolkit” of countermeasures against the U.S.

Foreign Ministry spokesperson Mao Ning stated at the regular press conference on November 3 that **the immediate priority is for both China and the U.S. to earnestly implement the important consensus reached by the two heads of state at the Busan meeting**, injecting greater stability into China-U.S. economic and trade cooperation and the global economy.

Yang Chang, chief analyst of the policy team at Zhongtai Securities Research Institute, noted that the outcomes of the Busan meeting and the Kuala Lumpur consultations complement each other, signaling a phased stabilization in China-U.S. economic and trade relations.

The results indicate a temporary easing of both tariffs and export controls, which may shift market sentiment from concern to risk appetite recovery following confirmation.

As President Xi Jinping emphasized during the meeting, “China and the United States should be partners and friends.” This principle not only reflects historical wisdom but also addresses present-day realities.

Through this summit, both sides have laid a solid foundation for bilateral relations and created a more favorable environment for their respective development.

       Z-TOP GROUP