Feng Proposes 10-Fold Increase in Tariff-Free US-China Trade

China's ambassador to the US, Xie Feng, has proposed a significant increase in tariff-free trade between the two nations. This move comes as both countries attempt to move away from the trade war that had been ongoing for much of the past year. The current bilateral trade between the US and China exceeds $680 billion.

Feng's proposal is an extension of his previous calls for mutual tariff reductions and expanded bilateral trade cooperation. In May 2025, the two sides agreed to reduce certain tariffs by 115% for an initial 90-day period, while maintaining a baseline reciprocal tariff of 10%. This agreement followed a summit between Chinese President Xi Jinping and US President Donald Trump.

The current trade discussions have not addressed cryptocurrencies or digital assets, with any benefits to these markets expected to flow through sentiment channels rather than direct policy changes. The regulatory frameworks being negotiated remain traditional.