How the US and China can ensure their board of trade is effective

Following a summit between Chinese President Xi Jinping and US President Donald Trump, the establishment of a board of trade was agreed upon, though details regarding its mission, responsibilities, and operations remain scarce.

The White House anticipates the board will manage bilateral trade in non-sensitive goods. Conversely, China's Ministry of Commerce stated the board will discuss issues such as tariff reductions. While not contradictory, these differing formulations suggest potential challenges ahead.

The article argues that for the board to be an effective mechanism for engagement and action, both sides must first agree on a detailed mandate. It also advises the US to learn from the successes and failures of previous bilateral economic engagement bodies, such as the Strategic and Economic Dialogue and the Joint Commission on Commerce and Trade.

Initially, the US-China board of trade is expected to identify approximately $30 billion worth of products in non-sensitive sectors that could be subject to tariff reductions or elimination. This excludes critical minerals, advanced semiconductors, chip equipment, and cars. The article notes that while determining sensitive trade is one thing, developing a list of non-sensitive sectors and products is another.

U.S. Trade Representative Jamieson Greer has indicated that agricultural goods, aircraft, and medical equipment are among the U.S. exports Washington wishes to discuss. The administration also plans to seek public comment on which products should fall under the board's purview. Non-sensitive U.S. imports from China could include consumer goods and low-technology items.