Xie Feng: US companies hope to expand China-US tax reduction list, $30 billion can be doubled

SHANGHAI, June 20 (CNA) -- Chinese Ambassador to the United States Xie Feng recently stated at a dinner hosted by the U.S.-China Business Council that China and the U.S. are negotiating a reciprocal tax reduction arrangement of $30 billion, and that many American companies have told him that $30 billion is not enough. He believes that given the scale of China-U.S. trade, "doubling it or adding a zero would not be excessive."

The WeChat public account of the Chinese Embassy in the United States released a message on the 19th stating that the U.S.-China Business Council held its 2026 annual gala dinner in Washington on the 17th local time. Xie Feng attended and delivered a speech, saying that the meeting between Chinese President Xi Jinping and U.S. President Trump in Beijing in May not only pointed the direction for the development of China-U.S. relations again but also brought multiple benefits to China-U.S. economic and trade cooperation.

He pointed out three aspects: first, establishing a new positioning for China-U.S. relations, which provides stable expectations for bilateral economic and trade cooperation; second, initiating a new process for China-U.S. exchanges, which injects positive momentum into bilateral economic and trade cooperation; and third, building a new platform for China-U.S. dialogue, which enhances institutional guarantees for bilateral economic and trade cooperation.

Xie Feng mentioned that China and the U.S. are negotiating a reciprocal tax reduction arrangement of $30 billion. "Many American companies have told me that the $30 billion basket is not large enough and they hope to include all their products. I fully agree with this." He added that considering the volume of China-U.S. trade, the list of exemptions can be made longer and the scope of the arrangement can be made larger. "Doubling $30 billion or adding a zero would not be excessive."

He also emphasized that the legitimate concerns of Chinese enterprises should be resolved as soon as possible, and that export controls, two-way investment restrictions, antitrust investigations, and "blacklists" such as lists of military-related enterprises should not be used as tools for suppression.

Xie Feng also said that there are no winners in tariff wars, trade wars, or technology wars. Decoupling and breaking supply chains, and "small yards with high fences" will not work. Blocking others' doors will only block one's own path. As the world's two largest economies, China and the U.S. benefit from cooperation and are harmed by confrontation. Mutual respect, peaceful coexistence, and win-win cooperation are the right path forward.

U.S. Trade Representative Jamieson Greer stated last month that Washington and Beijing have agreed to establish a "Board of Trade" to initially assess which tariffs can be reduced or eliminated on approximately $30 billion worth of non-strategic goods. The U.S. government will solicit public opinion on which Chinese goods may be eligible for lower tariffs.

The Chinese Ministry of Commerce responded at the time that both sides had agreed in principle to discuss a framework arrangement for reciprocal tax reductions on products of equivalent scale under the Trade Council, with each side amounting to $30 billion or more. The economic and trade teams of both sides will maintain close communication to finalize specific arrangements and promote their implementation as soon as possible. (Editor: Zhu Jianling) 1150620

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