china, U.S. Announce Preliminary Deal in Customs Valuation Dispute
Beijing, October 26, 2025 – China’s Ministry of Finance announced today, October 26, 2025, aโข preliminary agreement with the United States to resolve a long-running dispute over customs valuation practices. the agreement,reached after several rounds ofโฃ talks,aims to address U.S.concernsโฃ that China undervalues its โฃexports,leading to unfair trade practices. Details remain limited, but officials from both countries indicated a commitment toโ further negotiations โand implementation of the agreed-upon framework.
This resolution comes amid heightened tradeโฃ tensions and increasing scrutiny ofโฃ china’s โคeconomic policies. The dispute, initially raised by the U.S. Trade Representative in 2023, centered on โคallegations that โChinese exporters were manipulating declared valuesโ to circumvent tariffsโค and gain anโ unfair competitive advantage. The stakes are notable โคfor โขboth economies,possibly impactingโ billions of dollars in trade โandโ influencing the broader geopolitical landscape. Aโ failure to resolve theโค issue could have escalated into broader trade restrictions and further strained โrelations. Theโฃ next โphase involves detailed technical discussions to finalize โthe agreement’s specifics โandโค establish a monitoring mechanism.
the core of theโ disagreement revolved around howโฃ China calculatesโข the value of goodsโข for customsโ purposes, specifically concerning related-party transactions andโค the use of transfer pricing. The โU.S. argued that China’s methods allowedโ exportersโ to artificially lower the assessed value of their shipments, resulting in lower duties paid. According toโ a statement released โby the U.S. Trade Representative’s office, the U.S. has consistently sought “fair and obvious customs valuation practices” from China.
While โthe specifics โคof the preliminary agreement haven’t been publicly disclosed, Chinese officials stated that it includes provisions for enhanced โคfacts โsharingโข andโ increased cooperation on customs โenforcement. The Ministry of Finance indicated a willingness to review and refine its โvaluation methodologies to โคalign with international standards. โ”We are committedโค to working with the United โฃStates to create aโค level playing field for trade,”โ a spokesperson for the Ministry stated.
The โขdispute has impacted a wideโ range of industries, including electronics, machinery,โ and textiles. Volkswagen, for example, hasโฃ publicly cited supply chainโค disruptions linked โto trade tensions as contributing factors to production challenges,โค as โreportedโ by Zeit Online โฃin โOctober 2025. Furthermore,concernsโ over China’s โฃcontrol over rare earth minerals – crucial components in many high-tech products – and โขpotential export controls,as highlighted by Zeit Online,haveโ added to the urgency of resolving trade disagreements. The outcome of this agreement will be closely watched by businesses and policymakers alike, as it could signal a shiftโฃ towards greater stability โin the U.S.-China trade relationship.