Key outcomes from five rounds of China-US trade talks in 2025

China

Key outcomes from five rounds of China-US trade talks in 2025

2026-03-14 16:48 Last Updated At：03-15 01:07

China and the United States held five rounds of high-level economic and trade talks last year, paving the way for smoother and more stable relations, as the two sides will engage in consultations on economic and trade issues of mutual concern for the sixth round.

The first round of high-level economic and trade talks was held in Geneva in May last year. This followed the U.S. announcement of additional and reciprocal tariffs on Chinese goods, met with matching tariffs from China. The Geneva meeting resulted in the removal or suspension of those tariffs and established a consensus on creating a "China-U.S. economic and trade consultation mechanism."

A month later, the two sides held the second round of talks in London. They agreed on the implementation of the consensus reached during a leaders' phone call days earlier and settled on a tariff framework.

The third round of talks took place in Stockholm at the end of July. Negotiators confirmed another 90-day suspension of the 24 percent reciprocal tariffs and made progress across multiple areas, including macroeconomic policies, manufacturing capacity, energy trade, and China's rare earth exports.

The fourth round of talks, held in Madrid in mid-September, achieved a breakthrough on TikTok issues. A framework agreement was reached concerning data consignment operations and algorithm authorization.

The fifth round of consultations in Kuala Lumpur at the end of October agreed to cancel the 10 percent fentanyl tariff. A basic consensus was reached on several issues, including the U.S. Section 301 measures targeting China's maritime logistics and shipbuilding industries, as well as extending the tariff suspension period. The meeting also led to the removal of some other export controls, with China lifting its countermeasures in response.

The achievements of these five rounds of talks have essentially steered the China-U.S. relationship from one of high tension toward dynamic stability.

Chinese Vice Premier He Lifeng will lead a delegation to France to hold economic and trade talks with the United States from March 14 to 17, China's Ministry of Commerce announced on Friday.

The two sides will follow the important consensus reached at the Busan meeting and during previous phone conversations between the two heads of state, focusing on consultations regarding economic and trade issues of mutual interest.

China's Ministry of Commerce has criticized U.S.-initiated Section 301 investigation against 16 economies, including China, on the grounds of "excess capacity" as typical unilateralist acts that seriously undermine the international economic and trade order.

The Ministry also says the world economy has long become an inseparable whole, and both production and consumption are global. The U.S. side cannot narrowly define the production capacity that exceeds domestic demand as "overcapacity" and label it as "excess capacity".

China has urged the United States to correct its wrongdoings and return to the right track of resolving issues through dialogue and consultation.

ASEAN power grid integration gathers pace amid energy crisis

The global energy crunch and its impacts on Southeast Asia are driving efforts to link the power grids of ASEAN member states, with officials and analysts saying the push could strengthen energy security and accelerate the shift to renewables.

For decades, the idea of an interconnected ASEAN power grid has been on the regional agenda. The current crisis in the wake of wars in Iran and other Gulf states has added urgency, highlighting both the region's diverse energy resources and its vulnerabilities.

Some countries in the region have abundant natural gas or hydropower, others hold vast solar potential, while countries like Singapore rely almost entirely on imports. Even power-producing nations at times face shortages, making cross-border supply an attractive solution.

"It will help us to strengthen our energy security. And of course, a diversified and cheaper supply of energy will boost our regional economic integration and economy. So I think everyone benefits from this," said Chheang Vannarith, chairman of the Cambodian National Assembly Advisory Council.

Malaysia, as ASEAN chair last year, pressed for stronger commitments. Analysts say the current crisis is sharpening focus on the issue.

"It is definitely a wake-up call. It acts as a catalyst. It is also our hope that the Philippines, as the chair of ASEAN this year, and given the circumstances that we are in today with the global energy crisis and the global supply crisis, that this agenda is put at the forefront of the ASEAN discussion," said Amir Fareed Raheem, geo-economist at KRA Group, an ASEAN-focused public affairs and political risk consultancy.

Even as the idea gains momentum, major challenges remain ahead in terms of agreeing on regulations, technical standards and pricing. Further out still are the more ambitious proposals, such as undersea cables to transmit hydropower from northern Malaysia to Singapore and beyond.

Despite the lingering questions, tangible progress is being made. Since 2022, a flagship pilot project has enabled hydropower from Laos to flow through Thailand and Malaysia to Singapore. An agreement signed earlier this year will double its maximum capacity.

"Eleven countries, [with] different systems, different pricing mechanisms. It has to be tested in smaller groupings first before it is scaled up to the whole ASEAN operating system," said Raheem.

With countries striving to expand renewable energy and the crisis straining supplies, consensus is building to move the ASEAN power grid from long-standing aspiration to practical reality.