A new round of China-U.S. economic and trade consultations has reached a preliminary consensus! The suspension of tariffs has been extended! A significant signal has arrived, providing a buffer window for cross-border sellers.
Created on 10.30
1. Latest Developments: High-level talks between China and the United States send positive signals
On October 27, Wang Yi, a member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, had a phone call with U.S. Secretary of State Rubio. Both sides emphasized that the healthy, stable, and sustainable development of China-U.S. relations is in the common interest of both countries and the world. Wang Yi stated that although there have been setbacks in China-U.S. economic and trade relations recently, through the Kuala Lumpur economic and trade talks, both sides have clarified their positions, enhanced understanding, and formed a framework consensus on mutually addressing the current urgent economic and trade issues. Rubio expressed that the U.S.-China relationship is the most important bilateral relationship in the world and looks forward to releasing positive signals through high-level interactions.
This call is seen as a continuation of the economic and trade consultations in Kuala Lumpur, demonstrating that China and the United States are promoting the relationship to "stabilize and move forward" at both diplomatic and economic levels.
II. Economic and Trade Talks: The Fifth Round of China-U.S. Consultations Reaches Preliminary Consensus
On October 25 to 26 local time, He Lifeng, the Chinese lead for the China-U.S. economic and trade talks and Vice Premier of the State Council, held the fifth round of economic and trade consultations in Kuala Lumpur, Malaysia, with U.S. Treasury Secretary Janet Yellen and Trade Representative Katherine Tai. The talks lasted nearly ten hours and were held at the iconic Merdeka 118 building in Kuala Lumpur.
Image source: Xinhua News Agency
Both sides engaged in in-depth discussions on key issues such as maritime logistics, shipbuilding industry 301 measures, tariff suspension period, export controls, and agricultural product trade, and reached a preliminary consensus on arrangements to address each other's concerns.
Image source: Xinhua News Agency
According to Xinhua News Agency, the two sides conducted in-depth, candid, and constructive exchanges guided by the important consensus reached during previous calls between the heads of state of the two countries.
Three, Background of the Consultation: The "Window of Easing" After Tension
In the past month, the economic and trade relations between China and the United States experienced some turbulence.
On October 14, the U.S. initiated Section 301 tariff measures targeting China's shipping, shipbuilding, and logistics sectors, and even threatened to impose a 100% tariff on Chinese products starting from November 1, while also including "key software" in the export control scope.
China firmly opposes this and has repeatedly stated: The essence of China-U.S. economic and trade relations is mutual benefit and win-win cooperation; cooperation benefits both sides, while confrontation harms both.
Image source: The Paper
This consultation signifies that China and the United States are moving back from the "edge of confrontation" to the "dialogue table," which is a stabilizing signal for the entire cross-border trade and global supply chain system.
IV. Core Achievements: Extension of Tariff Suspension, Reopening of Procurement
The outcome of this round of talks is tangible policy actions:
Image source: Xinhua News Agency
1) The 100% tariff increase has been suspended. The U.S. has canceled the planned increase that was set to take effect on November 1.
2) Consensus has been reached on the tariff issues between maritime logistics and the shipbuilding industry. Both parties agreed to establish a special task force to assess the rationality of the 301 measures.
3) Agricultural product trade resumes. China will resume substantial purchases of American soybeans, and the U.S. Secretary of Agriculture stated that "soybean farmers will be satisfied."
4) The implementation of the rare earth export license is postponed for one year. China will reassess the policy to maintain the stability of the rare earth supply chain.
5) Both parties agree to extend the "tariff truce period." The suspension period, originally set to expire on November 10, is expected to be further extended.
This round of negotiations not only halted the escalation of tensions but also restored cooperation channels in some sensitive areas.
Five, what does this mean for cross-border sellers?
From the perspective of cross-border e-commerce and supply chain, this meeting has released a clear signal: in the coming months, trade and logistics between China and the United States will experience a phased easing, which is an operable window period.
1. The logistics chain is more stable, and the tight cabin space is alleviated.
Previously, the United States imposed additional port fees on China's shipping industry, resulting in increased quotes from some U.S. route shipping companies, tight cabin availability, and delays in customs clearance. The consensus reached by both parties this time means that U.S. route freight rates are expected to stabilize, alleviating the pressure of shipments during the peak season.
Seller's suggestion: Gradually resume direct shipping to the US, pay attention to the customs clearance rhythm in Los Angeles and Long Beach, and avoid concentrated shipments.
2. The tariff risk is temporarily alleviated, and the profit margin can be adjusted.
The originally planned 100% additional tariffs, which were set to take effect on November 1, have been canceled. In the short term, import costs remain stable, which is beneficial for platform sellers, OEM factories, and B2B traders.
Seller's suggestion: Normal pricing strategy and promotional rhythm can be restored, while maintaining a certain gross profit margin to guard against policy fluctuations.
3. The cost of raw materials stabilizes, and downstream pressure eases.
The trade of raw materials such as soybeans, corn, and rare earths has resumed, which will drive supply chain price stability and lead to a decrease in costs for certain categories.
Seller's suggestion: Sellers of food, health products, and pet supplies should pay attention to the trend of raw material prices and plan their year-end new product launches in advance.
4. Exchange rates and market confidence stabilize
The negotiation interrupted the market's pessimistic expectations for a comprehensive tax increase, and the RMB exchange rate has stabilized in the short term, which helps export enterprises manage foreign exchange settlement and investment risks.
Seller's suggestion: Arrange the foreign exchange settlement time reasonably, lock in the advertising budget, and optimize cash flow during the short-term exchange rate stability period.
The recent China-U.S. economic and trade talks are the most critical turning point since 2025. They have shifted China-U.S. trade from confrontation to dialogue, providing a rare buffer window for cross-border sellers. What needs to be done next is to lay out plans in advance within a "stable" environment:
Steady sales, control inventory; adjust prices, focus on gross profit; monitor exchange rates, secure advertising; build long positions, mitigate risks.
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