China, U.S. move to establish trade and economic consultation mechanism welcomed by analysts

Following their trade talks in Geneva over the weekend, China and the United States agreed to establish a consultation mechanism on trade and economic issues, an outcome analysts said aligns with the interests of consumers and businesses in both countries.

As the two sides work to finalize relevant details and will issue a joint statement reached at the meeting later today, they said their efforts are expected to help ease global market concerns over an escalation in China-U.S. economic and trade tensions.

Peng Delei, a professor specializing in international trade law at the East China University of Science and Technology in Shanghai, said that China's decision to engage with the U.S. underscores its commitment to addressing global expectations, supporting multilateralism, responding to the concerns of U.S. society and helping steer the world economy toward a more stable and sustainable path.

"As the world's second-largest economy, China views its economic and trade ties with the U.S. as a stabilizing anchor for global growth," said Peng. "Any unilateral trade protectionist measures would trigger a ripple effect across the global economy."

Through equal dialogue and consultation, U.S. consumers can continue to benefit from the high-quality goods and services that China provides, he added.

While the meeting in Switzerland marked meaningful progress and yielded important consensus, Ying Pinguang, dean of School of Global Governance at Shanghai University of International Business and Economics, said that China will pay close attention to U.S. actions in the next step, particularly whether it follows through with concrete measures on core issues including tariffs and export controls.

In a globalized world, forcing a "decoupling" or disrupting supply chains goes against economic logic and could have devastating consequences for global economy, said Ying.

During the meeting with World Trade Organization Director-General Ngozi Okonjo-Iweala in Geneva on Sunday, Chinese Vice-Premier He Lifeng, stressed that the multilateral trading system with the WTO as the core is the cornerstone of international trade and plays a vital role in global economic governance.

All parties should resolve differences and disputes through equal dialogue under the framework of the WTO, jointly safeguard multilateralism and free trade, and promote the stability and smooth flow of global industrial chains and supply chains, said He.