China’s US envoy proposes 10-fold increase in tariff-free trade

China’s ambassador to the US, Xie Feng, has called for an end to trade wars and expanded bilateral trade cooperation. The proposal comes during a period of diplomatic recalibration, with both nations attempting to walk back from a tariff war that rattled global markets for much of the past year.

Bilateral trade between the US and China exceeded $680 billion in 2024.

The trade war backdrop

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%.

That agreement followed a summit between Chinese President Xi Jinping and US President Donald Trump, which produced what officials characterized as a trade truce. Ongoing economic consultations were established as part of the arrangement.

Feng has been a consistent voice for de-escalation throughout this period. His public statements have repeatedly emphasized the need for mutual tariff reductions and expanded bilateral trade cooperation.

What this means for investors

It is worth noting that current US-China trade discussions have not incorporated any references to cryptocurrencies, digital assets, or blockchain technology. The regulatory frameworks being negotiated remain squarely traditional. Any benefits to digital asset markets from improved trade relations would flow through sentiment channels rather than direct policy changes.

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