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Chinese ambassador to the United States Xie Feng on Wednesday proposed to increase the limit of tariff-free goods under the newly created US-China Board of Trade from the existing US$30 billion to US$300 billion – a 10-fold rise in non-sensitive trade covered by the mechanism.
Addressing a gathering at the US-China Business Council gala in Washington, Xie said he shared the view of “many friends from American businesses” that the tariff-free basket was “far from big enough”.
“I cannot agree more. If we take into account the scale of overall bilateral trade, there is still a reason for making the list of exemptions longer,” Xie added.
“Personally, I would argue for doubling the number to US$60 billion, or even raising it to US$300 billion.”
According to figures from the US Trade Representative’s (USTR) office, the goods trade between China and the US totalled an estimated US$414 billion in 2025.
The board of trade was one of the major outcomes of US President Donald Trump’s visit to China in May, with the two sides agreeing to select non-sensitive sectors and products from each side to manage a tariff-free trade mechanism.