US Trade Representative Jamieson Greer on Sunday, 18 May 2025 outlined a new structured framework for US-China trade and economic engagement, signalling a shift away from ad hoc dealings while keeping tariffs and restrictions on sensitive sectors firmly in place. The announcement followed President Donald Trump's high-profile summit with Chinese President Xi Jinping in Beijing and drew close attention from global markets and trading partners, including India.

Key Developments from the Summit

Greer, speaking separately on CBS News' 'Face the Nation' and ABC News' 'This Week', said Washington and Beijing had agreed to establish a 'Board of Trade' and a 'Board of Investment' to manage economic disputes and stabilise bilateral ties. He described the move as replacing the 'ad hoc approach' that had previously defined the relationship between the world's two largest economies.

The administration confirmed that China had agreed to purchase 200 Boeing aircraft initially, with the possibility of larger future orders. Greer acknowledged, however, that final details on several summit agreements were still being prepared.

What the US Said on Tariffs and Market Access

Greer was explicit that tariffs were not going away. 'The Chinese know… we're going to have a certain level of tariff to control our imports,' he said on CBS, while adding that Washington expected greater market access from Beijing in return. The administration said it was focused on trade in 'non-sensitive goods' — a category that includes agricultural products, Boeing aircraft, medical devices, and consumer items.

Notably, while President Trump told reporters after the summit that tariffs 'didn't come up,' Greer clarified on ABC that trade discussions had already been handled at lower official levels before the two leaders met — a distinction that underscores the gap between summit optics and working-level negotiations.

China Moves to Restore American Export Access

Greer pointed to concrete early steps from Beijing, including the restoration of access for some American beef and poultry facilities that had previously been deregistered. He also cited ongoing Chinese purchases of American soybeans and Boeing aircraft as evidence of renewed engagement on trade in non-sensitive categories.

Iran, Strait of Hormuz on the Agenda

The Trump-Xi summit also addressed regional security, particularly the Strait of Hormuz — a critical global oil shipping route facing instability amid rising tensions over Iran. According to Greer, Trump pressed Xi on the need to keep the strait open and sought assurances that China would not provide material support to Iran. 'The President was very focused on making sure that they didn't provide material support to Iran,' Greer said on ABC's 'This Week'.

Implications for India and Global Supply Chains

For India, the evolving US-China trade posture carries significant strategic implications. American efforts to reduce dependence on Chinese manufacturing and sensitive technologies have already prompted multinational firms to diversify supply chains toward countries such as India and Vietnam. A more formalised — but tariff-retaining — US-China framework could slow that diversification momentum or, alternatively, clarify which sectors remain off-limits for China, reinforcing India's positioning in electronics, pharmaceuticals, and components manufacturing.

How quickly the two new trade and investment boards become operational, and whether the 200-aircraft Boeing deal is finalised in full, will be closely watched as early indicators of whether this framework holds.