China's US envoy proposes tenfold increase in tariff-free trade exemptions

China’s ambassador to the United States, Xie Feng, has proposed a significant expansion of tariff-free trade exemptions between the two nations, suggesting a tenfold increase in the current scope. Speaking at the US-China Business Council gala in Washington, Xie emphasized the need to deepen economic cooperation amid ongoing trade tensions.

Addressing an audience of American business leaders, Xie highlighted shared concerns over the limited scope of existing tariff-free trade agreements. “Many friends from American businesses believe the current basket is far from big enough. I cannot agree more,” he stated. Xie advocated for a substantial increase, proposing that the exemptions list be expanded from its current level to as much as $300 billion. “If we consider the scale of overall bilateral trade, there’s a strong case for making the list longer,” he added.

The ambassador’s remarks come as trade between the two economic giants continues to face challenges. According to data from the US Trade Representative’s office, goods trade between China and the US amounted to an estimated $414 billion in 2025. While tariff exemptions currently cover a fraction of this, Xie’s proposal aims to unlock greater opportunities for businesses on both sides.

The suggestion reflects Beijing’s broader strategy to stabilize and improve economic ties with Washington, which have been strained by tariffs, technology restrictions, and geopolitical tensions. Expanding tariff-free trade could offer relief to industries heavily impacted by the trade war and provide a boost to bilateral commerce.

Xie’s comments signal China’s willingness to engage in deeper economic collaboration, but whether the US will reciprocate remains uncertain. The proposal could face scrutiny in Washington, where concerns over trade imbalances and national security risks continue to dominate discussions. However, for businesses eager to reduce costs and expand market access, the idea may garner support.