From May 10th to 11th local time, He Lifeng, the Chinese leader in Sino-US economic and trade affairs and Vice Premier of the State Council, held high-level economic and trade talks with US counterparts, Treasury Secretary Bethent and Trade Representative Greer, in Geneva, Switzerland. The two sides had candid, in-depth, and constructive communication centered around implementing the important consensus reached in the phone call between the Chinese and US presidents on January 17th this year, and reached a series of important agreements in the economic and trade field. At 9:00 am on May 12th local time, the two sides released the "Joint Statement of the Sino-US Geneva Economic and Trade Talks", following which the spokesperson of the Ministry of Commerce made a statement.
Since April 2025, on top of the previously imposed unilateral tariffs, the US government has added so-called "reciprocal tarif
fs" on China. China has taken resolute and just countermeasures. Subsequently, the US escalated tariff measures in turns, raising the "reciprocal tariff" rate on China from 34% in the first round to 84% and then to 125%. These high US tariffs have severely damaged normal bilateral economic and trade exchanges and disrupted the international economic and trade order. The joint statement reached in this round of talks marks an important step for the two sides to resolve differences through equal dialogue and consultation, laying the foundation and creating conditions for further bridging differences and deepening cooperation.
The two sides reached a number of positive agreements in the joint statement. They recognized the importance of bilateral economic and trade relations to the economies of both countries and the world, as well as the significance of a sustainable, long-term, and mutually beneficial bilateral economic and trade relationship. In the spirit of mutual openness, continuous communication, cooperation, and mutual respect, they will continue to promote relevant work. The two sides agreed to jointly take the following measures:
The US side committed to canceling a total of 91% of the tariffs imposed on Chinese goods under Executive Order 14259 of April 8, 2025, and Executive Order 14266 of April 9, 2025, and modifying the 34% reciprocal tariffs on Chinese goods under Executive Order 14257 of April 2, 2025. Specifically, 24% of the tariffs will be suspended for 90 days, while the remaining 10% will be retained. Correspondingly, China will cancel 91% of the countervailing tariffs on US goods; for the 34% countervailing tariffs corresponding to the US reciprocal tariffs, 24% of them will be suspended for 90 days, and the remaining 10% will be retained. China will also suspend or cancel non-tariff countermeasures against the US accordingly.
The two sides unanimously agreed to establish a Sino-US economic and trade consultation mechanism to maintain close communication on their respective concerns in the economic and trade field and conduct further consultations. The Chinese representative is Vice Premier He Lifeng, and the US representatives are Treasury Secretary Bethent and Trade Representative Greer. The two sides will conduct consultations regularly or irregularly in turn in China, the US, or a third country as agreed. If necessary, the two sides can conduct working-level consultations on relevant economic and trade issues.
This high-level Sino-US economic and trade talk has achieved substantial progress, significantly reducing bilateral tariff levels. The US has canceled a total of 91% of the imposed tariffs, and China has correspondingly canceled 91% of the countervailing tariffs. The US has suspended the implementation of 24% of the "reciprocal tariffs", and China has also suspended the implementation of 24% of the countervailing tariffs accordingly. This measure meets the expectations of producers and consumers in both countries and is in line with the interests of both countries and the common interests of the world. It is hoped that based on this talk, the US will continue to work with China, completely correct the wrong practice of unilateral tariff increases, continuously strengthen mutually beneficial cooperation, maintain the healthy, stable, and sustainable development of Sino-US economic and trade relations, and jointly inject more certainty and stability into the world economy.
The two sides committed to taking the following measures by May 14, 2025:
The US will (1) modify the ad valorem tariffs imposed on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macao Special Administrative Region) as stipulated in Executive Order 14257 of April 2, 2025. Specifically, 24% of the tariffs will be suspended for the initial 90 days, while retaining the remaining 10% of the tariffs imposed on these goods as specified in the executive order; (2) cancel the tariffs imposed on these goods under Executive Order 14259 of April 8, 2025, and Executive Order 14266 of April 9, 2025.
China will (1) correspondingly modify the ad valorem tariffs imposed on US goods as stipulated in the Announcement No. 4 of the Tariff Commission in 2025. Specifically, 24% of the tariffs will be suspended for the initial 90 days, while retaining the remaining 10% of the tariffs imposed on these goods and canceling the tariffs imposed on these goods according to Announcement No. 5 and No. 6 of the Tariff Commission in 2025; (2) take necessary measures to suspend or cancel non-tariff countermeasures against the US since April 2, 2025.
After taking the above measures, the two sides will establish a mechanism to continue negotiating on economic and trade relations. The Chinese representative is Vice Premier He Lifeng, and the US representatives are Treasury Secretary Scott Bethent and US Trade Representative Jamison Greer. Negotiations can be carried out in China, the US, or a third country agreed upon by both sides. If necessary, the two sides can conduct working-level consultations on relevant economic and trade issues.
Impact Trends on the International Trade of the PV Power Plant Industry
The substantial progress in tariff adjustment achieved in this Sino-US economic and trade talk has positive implications for the international trade of the PV power plant industry between the two countries and even globally.
Cost Reduction in Trade
For a long time, the Chinese PV industry has been a "victim" of US tariff policies. As early as 2011, the US launched "double anti" investigations against Chinese PV enterprises and imposed high tariffs. Subsequently, it used means such as "201, 301, 337, and anti-circumvention" many times to restrict the import of Chinese PV products. Under high tariff barriers, there are almost no direct exports of Chinese PV products to the US. Chinese PV enterprises had to transfer a large amount of production capacity to Southeast Asian countries for production to gain access to the US market. However, in 2024, the US launched double anti investigations against PV products from Malaysia, Vietnam, Cambodia, and Thailand, putting these overseas production capacities in trouble.
Now, with the US canceling 91% of the imposed tariffs and suspending part of the "reciprocal tariffs", and China making corresponding adjustments to countervailing tariffs, the cost of Chinese PV enterprises' products entering the US market will be directly reduced, enhancing their price competitiveness in the US market. For US PV power plant operators, the decrease in the cost of components and other products means a reduction in the construction cost of power plants, which will stimulate the growth of the demand for PV power plant construction in the US.
Potential Adjustment of Production Capacity Layout
In the past, in response to US tariffs, Chinese PV enterprises carried out two rounds of production capacity transfer. First, they transferred to Southeast Asia, and then due to changes in US policies, some enterprises chose to build factories in the US, the Middle East, and other places. After this tariff adjustment, enterprises may re-evaluate their production capacity layout strategies. For example, the Southeast Asian production capacity, which was greatly affected by US tariffs before, may become an important base for exports to the US again if the subsequent policies are stable. And for enterprises that have already built factories in the US, they may further optimize their supply chains to reduce the tariff costs of importing raw materials from other countries.
Promotion of Technological Exchange and Cooperation
With the reduction of tariff barriers, the exchanges and cooperation between Chinese and US PV enterprises are likely to become more frequent. The US has certain advantages in PV application technology and the combination of energy storage technology and PV, while China leads the world in PV manufacturing technology and the integrity of the industrial chain. Enterprises from both sides are expected to carry out technological exchanges, joint research and development, and other cooperation in a more open environment, promoting the progress of global PV technology and driving the PV power plant industry to develop in the direction of higher efficiency and lower cost.
In general, the positive results in tariffs from this Sino-US economic and trade talk bring good news to the international trade of the PV power plant industry. However, considering the complexity and uncertainty of Sino-US trade relations in the past, PV enterprises still need to be cautious, closely monitor the follow-up policy trends, rationally arrange production capacity globally, and strengthen technological innovation to respond to possible changes in the future.
Latest News
Product Display
YiJia Solar focuses on the production of solar photovoltaic support systems, providing one-stop smart energy solutions and a full range of home energy storage configurations.
