Beijing, May 7, 2025 — China’s Ministry of Commerce announced today that negotiations over a renewed trade agreement with the United States have made “positive and constructive progress,” signaling a potential easing of long-standing tensions between the world’s two largest economies.
At a press briefing held in Beijing, ministry spokesperson Gao Wen said both sides had “engaged in productive dialogue” over key trade issues, including tariffs, intellectual property protections, agricultural imports, and high-tech market access. The update follows a series of behind-the-scenes meetings between Chinese and U.S. trade officials held in Shanghai and Washington over the past two months.
“We are working toward a balanced and mutually beneficial agreement that reflects the interests of both countries and contributes to global economic stability,” Gao stated, adding that China remains “open and cooperative” as talks continue.
A Shift in Tone
This update marks a shift in tone from the stalemate seen during previous rounds of negotiations. While details remain scarce, sources familiar with the talks say that both countries are seeking to avoid the re-escalation of tariffs that disrupted supply chains and markets in recent years.
U.S. Trade Representative Katherine Tai, who met with her Chinese counterparts in late April, described the latest talks as “pragmatic” and “forward-looking.” The Biden administration has emphasized the need to protect American industry and labor while managing strategic competition with China.
Key Sticking Points
Although progress has been made, several contentious issues remain unresolved. These include:
- U.S. concerns over subsidies to Chinese state-owned enterprises.
- Restrictions on American tech companies operating in China.
- China’s demand for a rollback of tariffs imposed during the previous administration.
Analysts say that while a comprehensive deal is unlikely in the immediate term, a phased agreement could pave the way for improved economic ties.
Global Implications
The outcome of the U.S.–China trade talks will have wide-ranging implications for the global economy, particularly in sectors such as semiconductors, agriculture, and clean energy. Markets responded cautiously to the news, with both the Shanghai Composite and Dow Jones Industrial Average rising slightly on the day.
“This is a moment of cautious optimism,” said Dr. Elaine Zhao, a trade economist at the University of Hong Kong. “If both sides can move past the political rhetoric, we could see the foundations of a more stable economic relationship.”
For now, both Beijing and Washington appear committed to continuing negotiations — a sign, observers say, that cooler economic heads may be prevailing despite wider geopolitical friction.
