Sino-US trade talks a reaffirmation of managing differences

China and the United States held a second day of talks on Tuesday in London under the China-US economic and trade consultation mechanism, signaling the willingness of the world's two largest economies to sort out differences through equal dialogue, analysts said.

A mutually beneficial solution to a broader negotiation agenda can foster favorable conditions for normal economic and trade activities between the two countries, and make greater contributions to global economic recovery and growth, they said.

The analysts added that they expected the meeting, which came after Beijing and Washington agreed to a 90-day pause on triple-digit tariffs in May in Geneva, Switzerland, to go beyond tariff talks this time to include discussions on additional topics.

Vice-Premier He Lifeng, who is also a member of the Political Bureau of the Communist Party of China Central Committee, attended the meeting with US representatives, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.

Chinese Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang, who is also vice-minister of commerce, participated in Monday's talks as well.

Chen Wenling, former chief economist at the China Center for International Economic Exchanges, said, "The significance of the China-US consultations lies not only in the specific outcomes achieved, but in the world's two largest economies' reaffirmation of the path of equal dialogue to resolve differences."

Economic and trade ties still remain "the ballast and stabilizer "of China-US relations, Chen said, stressing that holding the meeting is beneficial for avoiding the escalation of trade frictions and for steadying the ship of bilateral ties, as well as for expanding cooperation.

The international community welcomed the China-US talks.

A United Kingdom government spokesman said on Sunday, "We are a nation that champions free trade, and (we) have always been clear that a trade war is in nobody's interests, so we welcome these talks."

Chen said, "The manner in which China and the US manage their differences and expand mutually beneficial collaboration will largely shape the trajectory of the global economy and trade.

"There is a global expectation that China and the US should demonstrate the wisdom and responsibility to keep their economic ties on a stable and constructive path, which would greatly benefit the world economy," Chen added.

Michael Hart, president of the American Chamber of Commerce in China, said: "We believe that the US and China should continue to trade with each other. We are looking forward to finding new ways to cooperate."

Hart said he hopes to see the "tariffs as low as possible and trade as open as possible".

He noted that there are plenty of areas in which the US and China could cooperate, and said that China continues to be a place with advanced manufacturing and a strong supply base, while the US has a strong agricultural sector that needs exports to China.

"US companies want to make sure they have access to as many customers in China as possible, and they, in general, continue to see China as a positive market," Hart said. "It's in our best interests that the governments find a way to cooperate."

Zhou Mi, a researcher at the Beijing-based Chinese Academy of International Trade and Economic Cooperation, said, "If the US can heed market voices and reduce trade restrictions against China, China-US bilateral trade will be imbued with tremendous vitality, and there is hope for a significant increase in US exports to China."

Whether for US farmers, manufacturers or tech companies, exporting to China holds great appeal, Zhou said, adding that once stable expectations are formed, the demand for trade-supporting infrastructure, logistics and communication will increase significantly, creating more job opportunities for the US.

Zhou noted that China, as the world's largest goods-trading country, can respond effectively and sustainably to the needs of US consumers as well as producers.

Furthermore, as bilateral trade relations stabilize and improve, the persistent inflation that has plagued the US economy in recent years might also ease, Zhou said.