Far East International Observation: China and the U.S. hold economic and trade consultations in Paris, France

On March 15–16 local time, the Chinese and U.S. economic and trade leaders, Vice Premier He Lifeng of the State Council and the Chinese side, held economic and trade consultations with U.S. lead negotiators, U.S. Treasury Secretary Janet Yellen and Trade Representative Katherine Tai, in Paris, France. Guided by the important consensus between the heads of state of China and the U.S., the two sides engaged in frank, in-depth, and constructive exchanges on issues of mutual concern, including tariff arrangements, promoting bilateral trade and investment, and maintaining existing consultation consensus. They reached some new common understandings and will continue to maintain consultations. Both sides agreed to study the establishment of a cooperation mechanism to promote bilateral trade and investment, continue to leverage the role of the China-U.S. economic and trade consultation mechanism, strengthen dialogue and communication, properly manage differences, expand practical cooperation, and promote the steady and positive development of bilateral economic and trade relations.

Far East Review:

This round of consultations is the sixth under the framework of the China-U.S. economic and trade consultation mechanism, following talks in Geneva, London, Stockholm, Madrid, and Kuala Lumpur. Against the backdrop of ongoing global geopolitical tensions, as the world’s two largest economies, the direction of China-U.S. relations is crucial for global supply chains and financial stability. These consultations serve as a prelude and stepping stone to the upcoming summit between the two heads of state, and also help stabilize market expectations. Although both sides agreed to study the establishment of a cooperation mechanism to promote bilateral trade and investment during this round, potential risks of trade friction remain a concern. For example, the U.S. launched two rounds of “301 investigations” targeting China and other countries on March 11–12, just before the talks, aiming to create new leverage to pressure China into concessions during negotiations. Moving forward, the China-U.S. economic and trade landscape may continue to feature a coexistence of dialogue and friction.