China and the United States failed to reach a final agreement or a comprehensive solution to the tariff dispute during the first meeting of their Joint Trade Council, held via video conference on Friday, November 13, 2026, as part of the bilateral economic and trade consultation mechanism. Washington had called on Beijing in October 2026 to immediately and fully implement the commitments outlined in the Busan trade agreement, amid US concerns that recent Chinese actions could jeopardize the understandings between the two countries. The Joint Trade Council is one of the communication channels within the bilateral economic and trade consultation mechanism, established by the two countries in May 2026 as a forum for talks. The council aims to provide a regular platform for discussing contentious issues and enhancing cooperation between the world’s two largest economies, according to a statement by Chinese Ministry of Commerce spokesperson He Yadong at a press conference, in which he said that both sides are maintaining close communication regarding the implementation of the agreement. The US-China discussions were limited to preliminary talks ahead of the anticipated summit between the two countries’ presidents in Shenzhen, China, on the sidelines of the APEC summit. The formation of this council was in implementation of the understandings reached at the summit between Presidents Trump and Xi Jinping in Beijing in May 2026. This meeting is considered a preparatory step before the face-to-face meeting scheduled between the two presidents on Thursday, November 19, 2026, in Shenzhen, China, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) leaders’ meetings. The outcomes were limited to the following:
1) Nature of the talks and discussions and the proposed tariff reduction package: The discussions focused on the mechanism for implementing a reciprocal tariff reduction arrangement. The Chinese Ministry of Commerce, in its statement issued on Saturday, November 14, 2026, described the discussions as frank, in-depth, and constructive. They addressed the implementation of the outcomes of previous consultations, including a reciprocal tariff reduction arrangement for agricultural goods trade, valued at $30 billion from each side (totaling $60 billion), following the completion of each party’s internal legal procedures. More than 90% of the products covered by the agreement will be exempt from all additional tariffs imposed by each side on the other, and these products will receive Most Favored Nation (MFN) treatment with regard to tariffs. This is the same proposal that was put forward after the Washington summit in September 2026, and it has not yet been finalized. The Chinese Foreign Ministry has not indicated that any concrete agreements have been reached with the US side.
2) Agricultural Trade: The two sides discussed US agricultural exports to China, with Beijing linking increased purchases of US agricultural products to Washington’s implementation of its tariff reduction commitments. Beijing is contingent on Washington activating the agreed-upon tariff reductions. In return, the US is demanding that China fully implement its commitments regarding agricultural purchases and the supply of rare earth minerals.
3) Next Steps: Both sides agreed to continue using the Trade Council as a platform to reduce outstanding issues and expand cooperation, ahead of the anticipated meeting between US President Donald Trump and his Chinese counterpart Xi Jinping in Shenzhen on the sidelines of the APEC summit.
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4) No Final Agreement: Neither side announced reaching any decisive agreements or signing a final settlement regarding the tariff package.
5) Continued Dialogue: The two sides agreed to continue using the Trade Council as a framework for addressing outstanding concerns and expanding cooperation, just days before the anticipated summit between Chinese President Xi Jinping and US President Donald Trump in Shenzhen, China.
Accordingly, companies in China and the United States are awaiting the implementation of arrangements related to reducing reciprocal tariffs between the two countries. Desiring to open channels of dialogue on technological and strategic issues, particularly artificial intelligence (AI), the understandings included launching a formal and dedicated dialogue on the risks and opportunities of AI and establishing a communication channel to address technology-related incidents. Furthermore, preparations for high-level summits are underway. These understandings contribute to creating a conducive environment for high-level political and economic meetings between the leaders of the two countries, such as the anticipated meetings on the sidelines of the APEC forums, to discuss sensitive issues like trade balance and strategic minerals.
