Xie Feng calls for 10-fold rise in US-China tariff-free trade under joint board
China's ambassador to the United States, Xie Feng, proposed raising the tariff-free goods limit under the newly created US-China Board of Trade from $30 billion to $300 billion — a 10-fold rise. Addressing the US-China Business Council gala in Washington, Xie said the existing basket was "far from big enough".
Speaking at the annual US-China Business Council gala in Washington, China's ambassador Xie Feng proposed raising the tariff-free goods limit under the newly created US-China Board of Trade from the existing $30 billion to $300 billion. "I cannot agree more with many friends from American businesses that the existing basket is far from big enough," Xie said.
The board was established as part of the framework agreement signed by the Trump administration and Beijing in April. It is designed to zero out tariffs on commercial goods excluding "sensitive" categories such as cyber, defence and advanced semiconductors. The Chinese proposal would primarily benefit US agriculture, medical devices, auto parts and consumer electronics sectors. White House National Economic Council Chair Kevin Hassett said the proposal would be "considered carefully".
US-China Business Council President Sean Stein said a 10-fold expansion could add "around $80 billion a year" to bilateral trade volumes. On Wall Street, shares of Caterpillar, Cummins and Boeing rose 1-1.4% in pre-market trading following the report. The Chinese yuan strengthened to 7.18 against the dollar. Goldman Sachs analyst Hui Shan said the proposal could be formally negotiated in November.
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