Pragmatism needed for China-U.S. economic cooperation

Editor's note: Wang Jun, a special commentator on current affairs for CGTN, is an assistant researcher at the Institute of American Studies, Chinese Academy of Social Sciences. The article reflects the author's opinions and not necessarily the views of CGTN.

Chinese President Xi Jinping congratulated Donald Trump on his election as president of the United States on Thursday. Despite challenges, China and the U.S. should still push forward the positive development of economic and trade relations on the basis of pragmatism and reciprocity, contributing to global economic recovery and scientific and technological progress.

First of all, the U.S. trade and technology wars against China have demonstrated that unilateralist measures such as tariffs and technology barriers are mutually damaging. The trade war with China failed to realize its goals of changing the substantial trade deficit and the structural dependence between the two countries, and it came at a great cost to the U.S..

The reduction in Chinese imports led to a shortage of supply of some products, driving up prices, increasing production costs for certain finished goods, raising living expenses for ordinary people, and adding burdens to businesses and consumers alike. Additionally, China's countermeasures reduced the export market for some U.S. products, negatively impacting industries like agricultural and manufacturing and their workforce.

Meanwhile, increased U.S. restrictions on Chinese technology companies, including Huawei, and strict export controls to establish "small yards and high fences" and advance "technological decoupling" to curb the development of China's high-tech industries have not only significantly harmed the economic gains of businesses and the interests of consumers in both countries, but have also disrupted the stability of the U.S.-China and global supply chains. In the long run, these policies could affect the position of China and the U.S. in the global market.

Furthermore, there remains a vast space for mutual interests between China and the U.S. in the areas of trade and technology. In trade, the two economies still demonstrate a high level of structural complementary, maintaining strong economic ties across most sectors, with total volumes generally staying at elevated levels.

According to data from China's General Administration of Customs, since 2020 the total volume of China-U.S. trade has stabilized and even rebounded, with the U.S. regaining its position as China's largest export market as of August 2024. U.S. Exports to China, released by the U.S.-China Business Council, noted that despite substantial declines in U.S. semiconductor exports to China, the Chinese market remains a vital destination for American goods, especially in agricultural products and services, supporting substantial U.S. employment. It also underscores the solid foundation and resilience of bilateral trade, with substantial potential for U.S.-China economic cooperation that aligns with mutual interests.

In science and technology, for a long time China and the U.S. have formed a unique cooperative relationship, driving rapid advancement for both countries and contributing to global innovation. At present, there remain complementarities and cooperative opportunities in technology, providing avenues for the U.S. and China to explore pragmatic cooperation mechanisms in both trade and technological sectors.

Moreover, the U.S.'s irrational and extreme pressure on China is not conducive to the lasting economic prosperity and technological progress of the two countries and the world at large. The unrealistic and counterproductive measures aimed at decoupling from China have caused considerable losses for both countries and affected other nations as well, undermining stability in the international economic and trade system and hindering technological progress. As the world's top two economies, trade reciprocity and technology cooperation between the U.S. and China are beneficial for global sustainable development.

Therefore, China and the U.S. should not compromise their shared and long-term interests, nor should they neglect their responsibilities and roles in global economic recovery. As President Xi has pointed out, China-U.S. ties are one of the world's most important bilateral relationships, which bear on the well-being of the two peoples and the future of mankind; they should serve as a booster of each other's development rather than a hindrance.

At this time of global economic downturn, only by promoting China-U.S. economic and technological cooperation with a rational and pragmatic approach can the two nations realize complementary advantages, mutual benefits and a win-win situation, and contribute to the prosperity and stability of the world.

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