The outcomes achieved by China and the United States in their latest round of economic and trade consultations could help bring more certainty and confidence to global industrial and supply chains, and may contribute to stabilizing the world economy, market observers and executives said.

The Ministry of Commerce announced on Saturday that China and the US agreed to establish trade and investment councils to address their respective concerns in trade and investment. Through the trade council, the two countries will discuss issues such as tariff reductions on specific products and have agreed in principle to lower tariffs on products of respective concern on an equivalent scale.

The two countries agreed to advance two-way trade through arrangements such as mutual tariff reductions on a range of products, including agricultural goods, while also reaching arrangements on China's purchase of US aircraft and arrangements for the US to ensure the supply of aircraft engines and related parts to China, the ministry said.

READ MORE: Beijing: China, US achieve positive outcomes in trade consultations

The two sides also agreed to resolve or make substantial progress toward resolving nontariff barriers and market access issues involving some agricultural products. For example, the US will actively work to address Chinese concerns including automatic detention measures targeting dairy and aquatic products, while China will actively advance solutions to US concerns regarding beef facility registration and poultry exports from certain US states to China.

Sean Stein, president of the US-China Business Council, said that on this basis, the two sides can expand dialogue across more areas and create a more favorable environment for US companies operating in China and vice versa.

Observers said the establishment of trade and investment councils could help institutionalize communication at a time when businesses on both sides are seeking greater regulatory certainty and clarity.

Denis Depoux, global managing director at German management consultancy Roland Berger, said that whatever communication platform is established would be a positive step.

"That does not mean tensions cannot flare up again overnight. But at the very least, it provides a clearer outlook and the prospect of relative stability in the coming months," he said.

ALSO READ: Sino-US trade consultations key to global stability, growth

Zheng Yongnian, dean of the School of Public Policy at The Chinese University of Hong Kong (Shenzhen), said the essence of China-US economic and trade relations is not a "zero-sum game", but mutually beneficial cooperation built on each side's comparative advantages.

US executives said that stable China-US economic ties remain essential for long-term supply chain cooperation and market development.

Brian Sikes, board chair and CEO of US agribusiness group Cargill Inc, said that he remains optimistic about collaboration with Chinese partners, noting that "food can be a bridge to better relationships".

Achim Loeffler, global business leader of US advanced materials manufacturer Gore-Tex Brand, said that China has become one of the company's most important markets, driven by rising consumer demand, faster product development cycles and a well-developed supply chain ecosystem.

Contact the writers at zhongnan@chinadaily.com.cn