IT tariff cuts

The two countries reached a breakthrough on Tuesday in Beijing to accelerate the expansion of the World Trade Organization Information Technology Agreement, which could help cut $1 trillion in tariffs on high tech product sales globally.

Obama said it was APEC's work that led to the ITA, for which an expansion is now being negotiated.

"So it is fitting that we are here with our APEC colleagues to share the news that the United States and China have reached an understanding that we hope will contribute to a rapid conclusion of the broader negotiations in Geneva," Obama said.

The deal would allow the "swift conclusion" on talks to enlarge the ITA at the WTO meeting in Geneva later this year.

Michael Froman, the US trade representative, said this is encouraging news for US companies that are keen to see global tariffs further cut on products such as medical equipment, GPS devices, video game consoles and next generation semiconductors.

The ITA took effect in 1997. The agreement now covers more than $4 trillion in annual trade.

"As many countries are still struggling to seek economic recovery and new areas for market growth, the new ITA breakthrough will encourage more trade between the world's largest and second largest economies," said Zhang Jianping, director of the International Economic Cooperation Institute of the National Development and Reform Commission.