Li Chenggang, China international trade representative with the Ministry of Commerce and vice-minister of commerce, said on Monday that following the talks in Paris, Beijing and Washington have agreed to work together to maintain the bilateral tariff levels. This suggests that the six rounds of consultations have established safeguards for bilateral tariffs — a mutual understanding, a balancing mechanism, and a stop-loss arrangement, to prevent unilateral tariff escalations. Neither country could bear a spiral of tariffs, following the heavy tariffs imposed by the United States on China last year, including fentanyl-related, "reciprocal", and sector-specific tariffs. China had responded with countermeasures.

The return of Washington to the negotiating table and the agreement by both sides to maintain tariffs at current levels demonstrate the effectiveness of China's countermeasures. This also indicates that the impact of trade bullying is increasingly diminishing in the face of China's firm stance.

In addition, the two sides reviewed the implementation of the outcomes of the previous five rounds of consultations held last year and expressed positive recognition that the implementation has met the expectations of both parties. While this may be a small step forward, it contributes to the healthy development of China-US trade relations.

Both sides also discussed setting up a working group to explore cooperation mechanisms for promoting bilateral trade and investment. This points to a new horizon and reflects a shared recognition that cooperation prevails over confrontation.

This mechanism might involve encouraging greater mutual investment by creating a fair, just and non-discriminatory business environment, reducing market barriers, and potentially addressing certain aspects of market access. However, this process cannot be completed overnight and requires both sides to collaboratively address each other's concerns. The demands of businesses from both countries have made this jointly envisioned mechanism possible, sending a positive signal for the future enhancement of bilateral trade and investment.

Li also mentioned the two recent Section 301 investigations by the US administration and made China's solemn stance clear — China will not yield to US trade bullying or unilateral sanctions and reserves the right to take all legitimate and necessary countermeasures. The Section 301 investigations, which have been exploited under the pretexts of "overcapacity" and "forced labor" to impose tariffs, place US domestic law above international law.

The sweeping Section 301 investigations also target other trading partners of the US, including the European Union, Japan and the Republic of Korea. This indiscriminate coercion undermines trade relations and cooperation with these trade partners and casts doubt on the validity of previous bilateral agreements, thereby risking the erosion of US credibility and trustworthiness.

If the US persists in using Section 301 to impose tariffs, not only will China take countermeasures, but other nations could follow suit. This would exacerbate global trade conflicts and heighten uncertainties. As a result, Washington may find itself increasingly isolated in the international economic, trade, and political arena. Moreover, it could further drive up inflation in the US and put additional strain on its economy. In such a scenario, pressure and coercion lose their bite.

From this consultation, the US has come to recognize the interdependent and mutually beneficial nature of its trade relationship with China. As a result, both sides can seek the greatest common ground that aligns with their shared interests, cultivate new areas and growth drivers, and address each other's legitimate concerns. This approach could steer China-US relations onto a path that allows both parties to establish a model for effectively managing risks and balancing interests within a reasonable framework. In the long term, this would lead to positive and constructive outcomes for both China and the US.

The author is deputy director of the Department of US and European Studies, China Center for International Economic Exchanges. This is an excerpt of the interview with China Daily reporter Li Huixian.

The views don't necessarily represent those of China Daily.

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