China and the U.S. are experiencing a shift in direction, with tax reduction arrangements currently under planning
According to Observer Net, on the afternoon of July 23, the State Council Information Office held a press conference, introducing the business work and operational situation in the first half of 2026.
In response to questions regarding the progress of establishing a trade council and an investment council between China and the U.S., Meng Hua Ting, Director of the Foreign Investment Department at the Ministry of Commerce, stated that the economic and trade teams of both sides are maintaining close communication on specific arrangements such as the structure, functions, and operational model of the trade council, and are also discussing the advancement of reciprocal tariff reduction frameworks amounting to $30 billion each.
This message carries positive signals, indicating that China and the U.S. will continue pushing forward policies conducive to bilateral economic and trade cooperation while maintaining overall stability.
It also provides a clear direction for the future of the temporary suspension agreement on bilateral tariffs, which is set to expire this November.
China and the U.S. are each other's third-largest trading partners and the world’s two largest economies. Stable cooperation between the two countries benefits people around the globe.
The relationship between China and the U.S. is also the most important diplomatic relationship in today’s world. If we properly manage this primary contradiction, most secondary issues can be resolved accordingly.
Will China and the U.S. remain consistently stable and mutually respectful going forward? The answer is obvious: the two countries will inevitably experience a general state of stability with localized conflicts.
These localized conflicts will not affect the overarching trend of stability between the two nations. For example, the current U.S. believes China has failed to fulfill its earlier commitments regarding export controls on rare earths; meanwhile, China contends that the U.S. falls short in treating Chinese enterprises without discrimination and respecting China.
Yet this does not imply that China and the U.S. will revert to a full-scale trade war. At present, the United States has lost its strategic advantage in containing China—put simply, it no longer holds effective cards to effectively restrain China.
On the contrary, China still retains several potent countermeasures against U.S. actions that have not yet been deployed.
Original source: toutiao.com/article/1871510336284676/
Disclaimer: The views expressed in this article are solely those of the author.