US and China Face Foundational Questions as New Board of Trade Takes Shape

The establishment of a bilateral board of trade was among the key deliverables agreed upon following the summit between Chinese President Xi Jinping and US President Donald Trump, though specifics regarding its mission, responsibilities, and operations remain largely undefined. The White House envisions the board managing trade in non-sensitive goods, while China’s Ministry of Commerce indicates it will address issues such as tariff reductions. While these objectives do not directly conflict, the broad language suggests potential challenges ahead.

Two critical approaches can help prevent misunderstandings and ensure the board’s effectiveness—both as a forum for dialogue and for taking concrete action. First, both nations should invest time in developing a detailed mandate rather than postponing these discussions. Second, the United States can draw from past experiences with bilateral economic engagement mechanisms—including the Strategic and Economic Dialogue and the Joint Commission on Commerce and Trade—to identify what has succeeded and what has fallen short.

For its initial priorities, the US-China board of trade is expected to identify around US$30 billion worth of products in non-sensitive sectors that could face tariff reductions or elimination. This would exclude items such as critical minerals, advanced semiconductors, chip equipment, and automobiles. Determining which products fall outside sensitive categories represents a distinct challenge from compiling a comprehensive list of eligible goods.

US Trade Representative Jamieson Greer has highlighted agricultural products, aircraft, and medical equipment as potential export sectors for discussion with Beijing. He has also indicated that the administration will seek public input on which products should qualify under the board’s scope, while non-sensitive US imports from China could encompass consumer goods and low-technology items.

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