It’s official: China and the United States have hit the reset button on their economic and trade ties. After constructive talks in Kuala Lumpur on October 2526, both sides agreed to pause several key measures for one year. 🤝
Here’s the lowdown:
- Fentanyl tariff truce: The US will drop the 10% fentanyl tariff and suspend 24% reciprocal tariffs. China will adjust its retaliatory duties.
- Export control pause: The US will suspend its 50% entity list export control measure. In return, China will freeze its new export controls from October 9.
- 301 suspension: Washington suspends its Section 301 probe on Chinese shipping for a year. Beijing suspends its related countermeasures.
- Broader cooperation: Both sides will step up fentanyl ban efforts, boost agricultural trade, and address specific enterprise cases.
Why it matters: Markets breathed a sigh of relief as the world’s two biggest economies agreed on a year-long truce. For farmers and businesses on both sides, this could mean smoother exports and more stable supply chains. 🌾🚚
This trade truce sets the stage for a calmer year—but the real test will be whether both sides can turn promises into action. Stay curious! 🌐🔍
Reference(s):
cgtn.com
