China, US Hold Sixth Round of Trade Talks in 2026

Summary

He Lifeng, Chinese vice premier, held the sixth round of economic and trade consultations with the US in Paris from 14-17 March 2026. Subsequent talks took place in Seoul on 12-13 May. A leaders' meeting on 14 May produced broadly balanced and positive outcomes.

On 23 July, Meng Huating, director of the Department of Foreign Investment Administration at the Ministry of Commerce, said both sides are discussing the structure of a trade council and exploring a framework for reciprocal tariff reductions of US$30 billion each.

Commentary

China and the US are negotiating a reciprocal tariff reduction framework worth US$30 billion each. If implemented, it could reshape trade flows in the Asia-Pacific. For New Zealand SMEs, the implications are mixed.

On one hand, easing trade frictions between the two economies helps stabilise global supply chains, and demand from China, New Zealand's largest export market, may receive a boost, with short-term gains likely for dairy, meat and other primary product exports. On the other hand, greater US agricultural access to China will directly compete with New Zealand in areas such as beef, dairy and fruit. Meanwhile, the negotiations may push China to accelerate market opening to other trading partners, and New Zealand businesses should be alert to pressure on prices and market share.

With roughly one-third of New Zealand's exports reliant on China, companies need to accelerate product differentiation, focus on premium grass-fed and organic segments, and monitor exchange rate volatility and new transshipment rules.

Keywords: China-US trade talks, He Lifeng, sixth round of economic and trade consultations, reciprocal tariff reductions, US$30 billion, trade council

Source: Baidu Encyclopedia