Beijing talks explore $30bn tariff cuts to avert further trade tensions

President Donald Trump and Chinese President Xi Jinping opened talks in Beijing on Thursday with trade officials exploring a narrow package of tariff cuts rather than a broad reset in relations. Reuters reported ahead of the meeting that negotiators were considering reductions on roughly $30 billion of imports on each side and a managed channel for goods judged non-sensitive to national security. China’s foreign ministry said Trump’s state visit runs from May 13 to May 15. (mfa.gov.cn) Associated Press reported that Trump’s tariff campaign had pushed U.S.-China trade into a steep downturn and forced companies on both sides to regroup. Reuters said the aim of this week’s talks was to prevent further deterioration in commerce while leaving in place broader tariffs and export controls tied to security concerns. CNBC reported the summit in Beijing began on Thursday morning and runs through Friday. ### How much tariff relief is actually under discussion? (msn.com) Reuters reported that U.S. and Chinese negotiators could identify about $30 billion of goods on each side for lower tariffs under the proposed arrangement. The goods under discussion were described as non-sensitive, meaning they would fall outside the stricter controls both governments have kept on technology and other strategic sectors. (apnews.com) That figure is limited beside the broader trade barriers built during the tariff fight. Reuters said the mechanism under discussion would allow both sides to keep wider restrictions in place while carving out a narrower lane for selected imports. ### What is the “managed trade” mechanism negotiators are talking about? U.S. Trade Representative Jamieson Greer first outlined the idea in March, saying Washington and Beijing had discussed something “almost like what we might call a U.S.-China Board of Trade,” according to reporting by The Straits Times cited in search results. (usnews.com) Reuters said the concept was being treated as a possible deliverable for the Beijing summit. Channel NewsAsia reported that Greer described the mechanism as a channel to formalize what kinds of goods the two rivals would trade. Reuters said the focus was on non-sensitive goods that could move without crossing what officials called national security red lines. ### Why are the two sides pursuing a narrower deal instead of a reset? Associated Press reported that the tariff war had already driven companies to rework supply chains and contributed to a collapse in bilateral trade flows. (straitstimes.com) Reuters said the Beijing talks were shaped more as damage control than as an attempt to settle the deeper disputes that have defined the relationship. The issues left outside the narrow trade lane remain substantial. (channelnewsasia.com) Reuters and CNBC both reported that the summit agenda also includes Iran, Taiwan, technology and export controls, all areas where neither side is expected to make sweeping concessions this week. ### What did the leaders say as the summit opened? Beijing’s Great Hall of the People hosted the opening ceremony on Thursday morning, where Trump and Xi met face to face at the start of the summit. (apnews.com) ABC News, citing remarks from the opening, reported Xi told Trump that both countries “stand to gain from cooperation and lose from confrontation” and said, “We should be partners, not rivals.” AP reported that the trip could produce more symbolism than major bilateral breakthroughs, even as trade remained central to the discussions. (msn.com) Reuters said business leaders were part of the broader effort around the summit as both governments looked for limited commercial outcomes they could present quickly. ### What should readers watch next? May 15 is the next concrete date in the talks, because China’s foreign ministry said Trump’s state visit ends that day. (abcnews.com) Reuters and CNBC reported that any announcement on tariff relief or a managed trade channel would most likely emerge from the summit’s final sessions or from follow-up work by Greer and other trade officials. (mfa.gov.cn) (apnews.com)