China and the U.S. have reached a tentative agreement to lower tariffs and ease non-tariff barriers during recent high-level talks and a summit in Beijing, a spokesperson for the Chinese Ministry of Commerce said in a statement on Saturday. 

The world's two largest economies reached "certain results" after economic and trade talks in South Korea on May 13 and during the summit between President Donald Trump and his Chinese counterpart, Xi Jinping. The two countries agreed to lower levies on some products to promote bilateral trade, China's Commerce Ministry said.

China and the U.S. will work on expanding two-way trade in agricultural products through "mutual tariff reductions on a certain range of products," the ministry said. The two will also work on non-tariff "barriers and market access issues" related to agricultural goods, the Commerce Ministry said. 

The summit marked the most significant face-to-face engagement between the U.S. and China in years, covering trade, energy, and aerospace. However, markets were cautious in their response after Trump said tariffs were not directly discussed during his two-day meetings with Xi.

Markets were "left rather underwhelmed" as "the summit ended without any major surprises," ING Chief Economist, Greater China, Lynn Song, wrote on Friday. "Both leaders touted an important consensus reached after the meetings, with Trump saying the relationship was "very strong" and Xi saying that both sides had achieved ‘lots of results' during the summit."

U.S.-China relations have frayed from a bruising 2025 trade war, disputes over AI chip export restrictions, and tensions over U.S. military operations against Iran. Since his inauguration, Trump has used tariffs as leverage against China to demand fairer trade terms and reduce America’s dependence on Chinese goods. 

U.S., China Teams To Work Together

Investors watched the Trump-Xi talks closely, looking for signs of progress on trade, tariffs, and the broader geopolitical mess surrounding Iran and Taiwan. The announcement by the Chinese Commerce Ministry should support market sentiment, with the ministry saying both agreed in principle to reduce tariffs on products each side considers important by an equal measure.

"The trade teams from both sides will, in accordance with the consensus reached by the two heads of state, finalize the outcomes as soon as possible and work together to implement them," the ministry said.  

The summit also touched on global energy concerns. The U.S. and China agreed the Strait of Hormuz, where one fifth of the world's oil and liquid natural gas transit, must remain open. This eased fears of deeper disruptions to global energy supplies. 

For China, the strait is a strategic energy transit point. China consumes approximately 16 million barrels of crude oil per day, with about five million barrels per day from the Middle East, including over a million barrels per day from Iran, according to Kpler.

China to Buy U.S. Aircraft

China will pursue purchases of U.S.-made aircraft, according to the statement. The U.S. will cooperate to ensure supplies of aircraft engines and parts to China. 

Aerospace giant Boeing Inc. (NYSE:BA) on Friday confirmed that China had committed to purchasing 200 aircraft during Trump's visit. A deal that could ultimately increase with orders for 750 additional planes.

“We had a very successful trip to China and accomplished our major goal of reopening the China market to orders for Boeing aircraft,” the company said in a statement. “This included an initial commitment for 200 aircraft and we expect further commitments will follow after this initial tranche.” 

Boeing's CEO Kelly Ortberg traveled with Trump as part of the U.S. delegation to China. Boeing didn't specify which models were on the negotiating table. 

Boeing stocks, however, fell 3.8% on Friday to $220.49. The stock has climbed 1% year-to-date.

"I think the rumor was going to be the 500 planes on order," Scott Kennedy, a senior adviser and trustee chair in Chinese Business and Economics at the Center for Strategic and International Studies (CSIS), said on Friday. "And of course, these come from Chinese airlines. President Xi doesn't actually buy planes and then hand them out. And so we'll need to see Chinese airlines announce the purchases."

U.S.-Chinese Agree To Establish Board of Investment 

The Commerce Ministry said that the two sides agreed to establish boards of investment and trade to discuss concerns. 

U.S. Trade Representative Jamieson Greer, Washington’s top trade negotiator, said earlier that the two sides had discussed creating a “Board of Trade.”

Treasury Secretary Scott Bessent said Thursday on CNBC that one idea is for each country to cut tariffs on about $30 billion worth of trade "for non-critical areas and areas that we're not trying to reshore.”

The outcome of the summit shows that both countries "can find solutions to the problems through dialogue and cooperation," the Commerce Ministry said.