HONG KONG: Asian stock markets rose on Monday after China and the United States released a joint statement announcing a temporary easing of tariffs and the launch of a new mechanism for economic and trade dialogue.
Hong Kong stocks led the regional surge. The Hang Seng Index soared 2.98 percent on the day.
The rally reflected renewed investor confidence in the Chinese economy and relief over the cooling of tensions with the US. The Shanghai Composite Index rose 0.82 percent, while Japan’s Nikkei 225 climbed 0.38 percent and South Korea’s KOSPI advanced 1.17 percent.
The decision followed a two-day China-US high-level meeting on economic and trade affairs, where both sides recognized the importance of their bilateral economic and trade relationship to themselves and the global economy, a joint statement said.
It noted that both China and the US emphasized the need for a sustainable, long-term and mutually beneficial economic and trade relationship.
According to the statement, the United States will place a 90-day pause on 24 percentage points of “reciprocal tariffs” imposed on imports from China (including articles of the Hong Kong Special Administrative Region and the Macau Special Administrative Region) on April 2, while retaining the remaining rate of 10 percent on those articles.
It will also remove the additional tariff rates on imports from China announced on April 8 and 9 respectively.
China will modify accordingly the application of tariffs on articles of the United States implemented in the Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining rate of 10 percent on those articles.
China will also adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.
The two sides committed to take the actions by May 14. They will also establish a mechanism to continue discussions about economic and trade relations.
These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the parties, the statement said.
China’s Ministry of Commerce stated that the measures align with the interests of producers and consumers in both countries, as well as with global economic stability.
The ministry called on the United States to continue working with China in a spirit of mutual respect and benefit, to fully correct unilateral tariff practices, and to inject more certainty and stability into the world economy. –The Daily Mail-CGTN news exchange item
