Senior U.S. and Chinese officials held discussions on maintaining trade cooperation on Friday, the latest signal of warming relations between the world's two largest economies as both sides work to implement an agreement that defused their trade conflict earlier this year.

AI Generated Image

Chinese Vice Premier He Lifeng held a video call with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer on December 5. Both sides confirmed the talks, with Bessent describing the discussion as "constructive" and saying implementation of the agreement between U.S. President Donald Trump and Chinese President Xi Jinping "is going well."

The call came as U.S. industries, particularly in the semiconductor sector, push to retain access to China's lucrative market despite ongoing restrictions. Advanced Micro Devices Inc. (AMD) CEO Lisa Su said Thursday the company holds licenses to ship certain MI308 chips to China and is prepared to pay a 15% tax to the U.S. government if it proceeds with shipments.

The discussions underscore efforts by both governments to stabilize economic ties after tensions erupted into a full-blown trade war that rocked global markets. Trump's advisers have repeatedly signaled they are prioritizing a steady relationship with China, despite pressure from some allies to take more coordinated action against Beijing.

China Emphasizes 'Constructive' Exchange

China's state-run Xinhua News Agency reported that the officials had "in-depth and constructive" discussions on implementing consensus reached during the Trump-Xi meeting in Busan and their phone call on November 24. The talks also covered advancing practical cooperation and addressing "respective concerns" on trade and the economy.

Both sides spoke positively about progress in carrying out outcomes of China-U.S. economic and trade talks in Kuala Lumpur, according to Xinhua. They pledged to "continuously lengthen the list of cooperation and shorten the list of problems" under the strategic guidance of the two heads of state, working to promote sustained and stable development of bilateral economic and trade relations.

U.S. Officials Affirm Commitment to Engagement

Bessent posted on X that the officials "discussed the ongoing implementation" of the Busan arrangement between Trump and Xi. "I also reaffirmed the United States' commitment to continued engagement with China," he wrote.

On Wednesday, Bessent said China was poised to complete its commitments under the U.S.-China deal, including purchasing 12 million metric tons of soybeans by the end of February 2026. The October agreement extended a tariff truce for one year, rolled back export controls and lowered other trade barriers. The U.S. agreed to trim tariffs on China in exchange for Beijing cracking down on illicit fentanyl trade, resuming U.S. soybean purchases and keeping rare earths exports flowing.

Greer said December 4 at a Washington event that "a lot of allies are interested in taking coordinated action, but the decision right now is we want to have stability in this relationship." He added: "I don't think anyone wants to have a full-on economic conflict with China and we're not having that."

Semiconductor Industry Seeks Market Access

The call occurred as U.S. chipmakers work to safeguard their position in China's semiconductor market. AMD CEO Su told a conference hosted by Wired in San Francisco that the company holds licenses to ship certain MI308 chips to China, according to Reuters.

Asked about potential AMD chip purchases, Chinese Foreign Ministry spokesperson Lin Jian said Friday that China has made clear its position on U.S. chip exports multiple times. "We hope the U.S. will take concrete actions to keep the global industrial and supply chains stable and unimpeded," Lin said.

Nvidia has been lobbying the U.S. administration and Congress to ease export controls preventing the company from selling leading-edge AI chips like H200 and Blackwell in China, according to media reports. Bloomberg reported Wednesday that U.S. lawmakers kept a measure out of must-pass defense legislation that would have limited Nvidia's ability to sell advanced AI chips to China.

On Wednesday, China Council for the Promotion of International Trade (CCPIT) Chairman Ren Hongbin led a Chinese business delegation to meet with the U.S. Semiconductor Industry Association and member companies. The two sides held discussions on promoting China-U.S. semiconductor cooperation and ensuring stable global supply chains, according to CCPIT.

The Friday call came a week after Trump and Xi spoke by phone, as escalating tensions over Taiwan threatened to upset the trade truce. Key elements of the pact—including expanded soybean purchases and approving licenses for rare earths shipments—remain works in progress.