China's US envoy calls for 10-fold rise in tariff-free trade to $300B

In a bold move to de-escalate trade tensions, Chinese Ambassador to the US Xie Feng proposed on Wednesday to raise the tariff-free goods limit under the US-China Board of Trade from $30 billion to $300 billion — a tenfold increase. Speaking at the US-China Business Council gala in Washington, Xie said he shares the view of many American business leaders that the current tariff-free basket is "far from big enough." The Board of Trade, a key outcome of President Trump's recent visit to China, was designed to select non-sensitive sectors and products from each side for a tariff-free trade mechanism. According to the US Trade Representative's office, total goods trade between the two countries stood at an estimated $414 billion in 2025, making the proposed expansion significant but still a fraction of overall commerce.

The ambassador personally advocated for at least doubling the limit to $60 billion, and suggested $300 billion as an ideal target. His comments signal a potential pathway for reducing trade friction while maintaining protection for sensitive industries. The proposal would cover non-sensitive goods, meaning sectors like advanced technology and defense would remain excluded. If accepted, the move could substantially lower costs for American and Chinese businesses operating in areas such as agriculture, consumer goods, and basic manufacturing. However, implementation depends on bilateral negotiations, and the current political climate in Washington may present obstacles. For professionals monitoring US-China trade dynamics, this proposal offers a concrete number to watch as a barometer of future economic cooperation.