China and U.S. Make Progress in Trade Talks

Quick overview

With U.S. retailers accelerating purchases and Chinese producers in “survival mode,” Li Chenggang’s trip aims to build bridges amid a fragile tariff truce and ongoing political tensions between Beijing and Washington.

China’s top trade negotiator, Li Chenggang, is set to travel to Washington this week to meet with U.S. officials, a U.S. government spokesperson confirmed. The visit is intended to explore possible paths beyond the current tariff ceasefire between the world’s two largest economies.

Li, China’s international trade representative and a key figure alongside economic czar He Lifeng, may meet with mid-level administration officials. However, Washington has stressed that the trip is not part of a formal negotiation round.

According to a source close to the talks, no meeting is scheduled with U.S. Trade Representative Jamieson Greer, and the trip was not requested by the American side. The Wall Street Journal first reported the news.

An Uncertain Trade Outlook

Markets on both sides of the Pacific are watching closely to see whether the truce, extended earlier this month, becomes permanent—or if President Donald Trump opts for another round of punitive tariffs that could hit global supply chains.

In the U.S., retailers are stocking up ahead of the holiday season, while Chinese producers—displaced from their largest consumer market—say they are in “survival mode,” scrambling to secure alternative buyers.

On August 11, the two countries agreed to a 90-day extension of the truce, keeping tariffs at 30% on Chinese exports and 10% on U.S. goods. Economists warn that if duties rise above 35%, pressure on Chinese exporters would become nearly unbearable.

Agriculture at the Heart of the Dispute

Li’s visit comes at a sensitive time. Just days ago, Chinese ambassador to Washington Xie Feng sharply criticized Trump’s trade policies. At a meeting with U.S. soybean producers, he accused the White House of “rampant protectionism” and denounced proposals to restrict farmland purchases by “foreign adversaries,” including China, as “political manipulation.”

Agriculture remains a flashpoint. Chinese buyers have scaled back purchases of U.S. products such as soybeans—now subject to a 23% tariff—leaving American farmers in a difficult position.

Analysts note that a potential increase in Chinese agricultural imports could help narrow the trade surplus with Washington, a tool Beijing has used before to honor commitments under the Phase One deal signed in 2020. This time, however, China appears confident it can negotiate more favorable terms.

“China will push for tariff reductions and possibly access to cutting-edge U.S. technology,” said Xu Tianchen, senior economist at the Economist Intelligence Unit in Beijing. “The question is whether the White House will agree—and, more importantly, what it will demand in return.”

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Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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