Jamieson Greer, U.S. Trade Representative [AFP Yonhap News]

The United States and China are accelerating the establishment of trade committees to reduce tariffs on each other's exports worth $30 billion.

According to Reuters, U.S. Trade Representative (USTR) Jamieson Greer stated at an event hosted by the Council on Foreign Relations (CFR) on the 26th (local time) that the U.S. will begin collecting domestic opinions through a Federal Register notice regarding which Chinese products will have tariffs reduced.

Greer confirmed that the tariff reduction amount would be $30 billion for each country, but predicted that such tariff reductions would not lead to the reshoring of supply chains to China.

China's Ministry of Commerce also announced on the 20th that both countries had reached a principled agreement to discuss an equal tariff reduction framework for equivalent goods through trade committees, stating that "the amount will be $30 billion or more for each country."

The establishment of trade committees, along with investment committees, was an issue agreed upon during the summit meeting between President Donald Trump and President Xi Jinping on the 14th-15th.

The core of the trade committees is to reduce tariffs only on non-sensitive items designated by each country. China's Ministry of Commerce explained that "there is a possibility of applying the most-favored-nation tariff rate or even a lower tariff rate."

However, Greer emphasized that even with these exceptions, it is highly likely that China will still face higher tariffs than other countries, and that "maintaining tariffs on China" was one of the outcomes of the meeting.

Greer also stated that the investment committee would not connect investors and projects between the two countries, and that Chinese investments in the U.S. would be reviewed on a case-by-case basis.

Regarding the supply of Nvidia's high-performance artificial intelligence (AI) semiconductor H200 to China, Greer said that Chinese companies are interested, but the Chinese Communist Party is more interested in fostering domestic chip development.