Photo: Xinhua

The just-concluded two-day trade talks between the Chinese and US delegations in Madrid have drawn wide attention from the media and investors, with the outcomes sending more positive and clear signals about relations between the world's two largest economies and their potential global influences.

The China-US consultations on economic and trade issues are steadily deepening, with both sides managing to maintain a much-needed problem-solving approach, Chinese experts said, noting that the outcomes of the latest negotiations in Spain are not only positive and significant for global development but also provide more stability for business expectations and market confidence.

The Chinese and US delegations engaged in candid, in-depth and constructive communication on economic and trade issues of mutual concern, including TikTok, a senior Chinese official said in Madrid on Monday, the Xinhua News Agency reported on Monday.

The two sides fully recognize that a stable China-US economic and trade relationship is of great significance to both countries and also has a major impact on global economic stability and development, said Li Chenggang, China international trade representative with the Ministry of Commerce and vice minister of commerce, at a briefing.

In complex economic and trade issues, China insists on the correct approach to problem-solving, which is also an important reason why both sides can reach a consensus in certain economic and trade areas, said Chinese observers.

Global markets were keeping a close eye on the talks in Spain, CNBC reported on Tuesday.

In the ensuing months after the trade war started this year, both countries showed a willingness to pull back and not shut down trade between the world's largest economies, The New York Times reported on Tuesday.

The potential deal on the popular social media app TikTok, which counts 170 million US users, was a rare breakthrough in months-long talks between the world's No.1 and No.2 economies that have sought to defuse a wide-ranging trade war that has unnerved global markets, Reuters reported.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday that despite the numerous difficulties facing bilateral economic and trade relations, both sides have reached a framework consensus and achieved results in certain areas through the Madrid talks, the main reason for this is that the two countries have the political will to stabilize their economic and trade relations.

Injecting stability

Speaking at a briefing on Monday after the two-day trade talks with the US team, Li Chenggang, China international trade representative with the Ministry of Commerce and vice minister of commerce, said that during this meeting, the two sides engaged in candid and in-depth discussions on TikTok and the relevant concerns of the Chinese side, and the two sides reached a basic framework consensus on resolving issues related to TikTok through cooperation, reducing investment barriers and promoting relevant economic and trade cooperation, the Xinhua News Agency reported.

At the press briefing, Wang Jingtao, deputy director of the Cyberspace Administration of China, said both sides reached a basic consensus regarding the full respect for the will of the business as well as the law of the market on resolving the TikTok issue through such methods as the entrusted operation of TikTok's US user data and content security business, and the license for use of the algorithm and other intellectual property rights, Xinhua reported.

The Chinese government will examine and approve relevant matters involving TikTok, such as the technology export and the license use of intellectual property, in accordance with relevant laws and regulations, Wang added.

On the TikTok issue, China's position is to respect the company's wishes and handle the matter in accordance with market principles, demonstrating its flexibility on this issue, Huo Jianguo, vice chairman of the China Society for World Trade Organization Studies in Beijing, told the Global Times on Tuesday.

Having said that, Huo noted that because TikTok involves technology exports and intellectual property licensing, it must be approved under China's relevant laws. This also indicates that if Chinese and US companies engage in commercial cooperation on similar issues in the future, it must comply with China's policy requirements, Huo added. 

The framework agreement also includes reducing investment barriers and promoting relevant economic and trade cooperation, as Xinhua reported, underscoring a broader range of the bilateral economic and trade matters. Huo said that these non-specific framework understandings could involve broader economic and trade cooperation between the two countries, including imports and exports and other key concerns.

"Reaching a framework consensus suggests that the two parties have already identified a direction for resolving these issues and will hold further consultations on specific matters in the future," Huo further noted.

Commenting on the outcomes of the trade talks, Li Yong, a senior research fellow at the China Association of International Trade, told Global Times on Tuesday that "Every round of China-US discussions is essentially a deeper exploration of their differences, and the negotiations are conducted with a problem-solving mindset." 

While differences remain in trade disputes and may persist in the future, it is important for the US side to seek solutions acceptable to both parties via consultation in an objective and rational manner, rather than forcing its will on the other side through unilateral approaches, Li Yong said. 

There are still significant differences between China and the US on major economic and trade issues such as tariffs and technology restrictions. In the future, both sides should continue to implement the important consensus reached during the leaders' phone call and the results of the four rounds of economic and trade talks, striving to achieve more outcomes through consultations, said Zhou, adding that this especially requires the US to abandon its erroneous practices of unilateral sanctions and "long-arm jurisdiction" coercion.