US–China ‘Board of Trade’ Plan May Improve Relations but Raises Market Concerns

Kuala Lunmpur, The United States and China are considering the creation of a new “Board of Trade” mechanism aimed at stabilizing economic relations between the world’s two largest economies. However, experts warn that the proposal could disrupt free market dynamics and create new uncertainties for global trade.

The idea emerged following recent high-level discussions between US and Chinese officials in Paris. According to US Trade Representative Jamieson Greer, the proposed board would help identify and formalize which goods should be exported and imported between both countries.

What Is the US–China Board of Trade?

The “Board of Trade” would function as a managed trade framework, focusing on balancing trade flows rather than relying purely on market forces. It could also explore opportunities to expand trade in non-sensitive sectors, including agriculture, energy, and aviation.

Analysts say this approach reflects a shift from traditional free trade policies toward a more structured and outcome-based system, similar to past agreements like the US–China “Phase One” deal.

Why Experts Are Concerned

Despite its potential benefits, economists and business leaders have raised concerns about the impact on global markets.

Critics argue that such a system could:

• Reduce the role of market forces in determining prices and trade flows
• Create uncertainty over which industries receive priority
• Affect global competitiveness and raise concerns among other trading partners

One analyst described the proposal as becoming “more mechanised,” questioning whether it could undermine the efficiency of open markets.

Potential Impact on Global Economy

If implemented successfully, the Board of Trade could help reduce ongoing tensions between Washington and Beijing and create a more stable long-term trade relationship.

However, experts caution that success depends on strong commitment from both sides, as previous agreements have struggled to meet targets.

The proposal comes at a time when global markets are already facing pressure from geopolitical conflicts, supply chain disruptions, and rising energy prices, making any shift in US–China trade policy highly significant.