(Yicai) May 20 -- China and the United States reached a preliminary consensus on a range of core issues, including tariffs, trade councils, agricultural trade, rare earth export controls and aircraft procurement during recent economic and trade consultations held in Seoul, an official from China’s Ministry of Commerce said today.

Both sides have reached understandings on bilateral trade tariffs, MOFCOM said. China hopes that in the future, regardless of the reason, US tariffs on Chinese goods will not exceed the levels set under the Kuala Lumpur economic and trade arrangement drawn up in October last year.

The two sides agreed in principle to discuss a reciprocal tariff reduction framework under a trade council mechanism, potentially covering products worth at least USD30 billion on each side. For mutually agreed sensitive products, tariffs could be reduced to Most Favored Nation levels or even lower.

In October 2025, China and the US reached a joint arrangement in Kuala Lumpur to address each other’s economic and trade concerns, suspending certain tariffs and non-tariff measures until Nov. 10. These included the US’ 24 percent “reciprocal tariffs” and China’s corresponding countermeasures, the US’ 50-percent affiliates rule on export controls and related Chinese measures, as well as an US Section 301 investigation into China’s maritime, logistics, and shipbuilding sectors, along with China’s countermeasures. Both sides have expressed willingness to extend the arrangement.

China and the US have also agreed to establish government-level trade and investment councils, shifting bilateral trade talks from crisis-driven responses to a more institutionalized framework, thereby providing institutional support for bilateral economic and trade cooperation. Details on the structure, function and operations of the two councils will be further negotiated.

Agricultural trade was a key area of progress, MOFCOM said. The US committed to lifting automatic detention measures on Chinese dairy products that had been imposed since 2008, to accepting pilot exports of Chinese potted bonsai grown in a special growing medium to the US, and to pushing for the removal of automatic detention measures on three categories of seafood products. China agreed to resume the registration of eligible US beef exporters and lift restrictions related to avian flu on certain US states. The ministry said some of these commitments have already been implemented as scheduled.

On the issue of rare earths, both sides held in-depth discussions, MOFCOM said. China will review export license applications for compliant civilian-use products in accordance with the law and will work with the US to create favorable conditions for mutually beneficial cooperation and the stability of global industrial and supply chains.

On aircraft trade, Chinese airlines will purchase 200 Boeing aircraft on commercial terms to meet the country’s air transport development needs, the ministry said. Meanwhile, the US side will ensure China receives an adequate supply of engines and spare parts.

Editor: Kim Taylor