Lead

Beijing has pledged to continue seeking tariff cuts and "win-win" cooperation with Washington even as it imposes fresh restrictions on American companies, underscoring the parallel tracks of cooperation and confrontation between the world's two largest economies. The messages come days after China placed new limits on dozens of U.S. firms in response to earlier U.S. actions, and follow a proposal by China's ambassador to the United States to massively expand the value of tariff-free trade between the two countries.

Coverage Comparison

Two reports from the South China Morning Post, which covers the story from an Asia-Pacific perspective, focus on different aspects of the development. One report emphasizes Chinese Ambassador Xie Feng's concrete proposal to increase the tariff-free threshold, while the other highlights the broader diplomatic posture of cooperation amid lingering friction. Both outlets provide quotes from Chinese officials and contextualize the trade relationship with bilateral trade figures.

Key Claims

Ambassador Xie Feng, addressing the US-China Business Council gala in Washington, proposed increasing the limit of tariff-free goods under the newly created US-China Board of Trade from $30 billion to $300 billion, a tenfold increase. "Personally, I would argue for doubling the number to $60 billion, or even raising it to $300 billion," he said, adding that the existing tariff-free basket was "far from big enough" given the scale of overall bilateral trade. The board was established during President Donald Trump's recent visit to China to manage tariff-free trade in non-sensitive sectors.

The value of U.S.-China goods trade totaled approximately $414 billion in 2025, according to the office of the U.S. Trade Representative.

China's Ministry of Commerce spokesman He Yadong told a press conference that both sides would "continue discussing reciprocal tariff reductions," and that economic and trade teams would "carry out further consultations on this matter." He also said Beijing would "encourage and guide their respective companies to strengthen engagement and expand trade activity" in aircraft and agricultural products.

Days earlier, Beijing imposed fresh restrictions on dozens of American firms, in response to what it described as earlier U.S. actions. He Yadong also criticized the expansion of the so-called Chinese Military Companies List, saying it "seriously harms Chinese enterprises."

Key Claims

  • Tariff-free expansion proposal: Ambassador Xie renewed calls to increase the tariff-free goods limit under the US-China Board of Trade from $30 billion to $300 billion, a tenfold rise.
  • Trade board creation: The board was established during President Donald Trump's visit to China, aimed at managing tariff-free trade in non-sensitive sectors.
  • Bilateral trade volume: Trade between China and the U.S. totaled about $414 billion in 2025, according to U.S. official figures.
  • Planned negotiations: Both sides plan continued consultations on reciprocal tariff reductions within the new trade board framework.
  • Cooperation in aviation and agriculture: China stated it will encourage companies to expand trade activity in aircraft and agricultural products.
  • Retaliatory measures: China imposed new restrictions on dozens of American firms in the days preceding the vows to pursue tariff cuts.

Perspectives

Chinese Government: Chinese officials emphasize a willingness to continue cooperative trade talks despite frictions, stressing the importance of win-win outcomes. They frame the new restrictions as as a necessary response to unfair American actions.

U.S. Business Community: The proposal to expand tariff-free goods has been welcomed by American business advocates, as expressed by Ambassador Xie, who shared their view that the current tariff-free basket is too small.

Trade Analysts: The parallel of cooperation on one track and confrontation on another reflects a pragmatic Chinese approach to managing relations with the U.S., balancing economic benefits with strategic positioning.