Mutual economic benefit between China and US essential for global prosperity

Editor's note: Wang Peng is a research fellow at the Institute of State Governance, Huazhong University of Science and Technology and the Eurasian Research Institute, Renmin University of China. The article reflects the author's opinions and not necessarily the views of CGTN.

The 2024 Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Lima is an important moment for the world's two largest economies, China and the United States, to reassess their roles in the Asia-Pacific region and beyond. The relationship between China and the US is complex and deep, existing between cooperation and competition. In the past eight years of high-frequency interaction, the two sides have gradually realized that strengthening the interdependence of trade and economic cooperation will not only help stabilize international supply chains to meet urgent global challenges but also lay the foundation for the common growth of the two countries, which is beneficial to the national interests and long-term well-being of the people of both countries. The vision proposed by the Chinese leadership emphasized a key theme, that is: mutual economic benefit between China and the US is not only in the interests of each country but also a cornerstone of global prosperity.

APEC as a pillar of regional and global economic collaboration

The APEC forum has long been a key platform for advancing regional economic integration. It stands as a model for fostering dialogue, reducing trade barriers, and encouraging sustainable development among economies with diverse political systems and developmental trajectories. China has emphasized that APEC has played an important role in making Asia and the Pacific the most dynamic economy and primary engine of global economic growth.

At a time when unilateralism and protectionism threaten multilateral institutions, APEC has exemplified the benefits of cooperative frameworks. China's call for building an "open and interconnected paradigm" resonates as a direct response to global challenges such as disrupted supply chains, economic fragmentation and geopolitical tensions. Initiatives such as the Free Trade Area of the Asia-Pacific (FTAAP) and China's commitment to advancing the Regional Comprehensive Economic Partnership (RCEP) demonstrate how regional frameworks can catalyze broader international economic progress.

China-US economic ties: A foundation for global prosperity

The economic interdependence between China and the US is significant. China is America's third-largest trading partner, following Canada and Mexico, and is a key destination for American exports. US Treasury Secretary Janet Yellen aptly noted that these ties necessitate finding a "way to coexist and share global prosperity." Despite political and ideological differences, the economic partnership between the two countries has weathered decades of fluctuation, driven by shared interests in stability, innovation and market access.

Challenges of economic cooperation amid geopolitical tensions

While mutual benefit is a clear economic reality, political challenges have complicated the US-China relationship. Washington's tendency to link economic policies with national security concerns – often manifesting as restrictions on technology transfers and investments – has strained bilateral relations. China has criticized such practices, stating that "overstretching the national security concept" harms mutual trust and impedes economic progress.

It was emphasized that "contradictions and differences between two major countries like China and the US are unavoidable". However, the Chinese side has emphasized that the principles of mutual respect and peaceful coexistence must remain central to the China-US relationship to prevent conflicts from overshadowing shared economic goals.

Expanding bilateral trade and investment remains the most tangible way to bolster mutual benefit. China's ongoing efforts to align with high-standard international trade rules, such as its active pursuit of membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), offer opportunities for enhanced cooperation. Green development is a crucial area for collaboration. Both nations play leading roles in the global transition to a low-carbon economy, and their cooperation in fields like renewable energy, electric vehicles, and carbon trading could yield transformative benefits. Building trust at the grassroots level is vital for a sustainable bilateral relationship. Both leaders highlighted the importance of people-to-people exchanges during their meetings. The restoration of over 20 communication mechanisms, including those focused on trade, finance, and climate change, is a positive step. 

Global implications of China-US economic cooperation

A collaborative China-US relationship has far-reaching implications for global stability and prosperity. Joint efforts to address issues such as climate change, technological innovation, and public health could set benchmarks for international cooperation. Additionally, their ability to stabilize global supply chains and foster open trade would benefit both developed and developing nations.

The 2024 APEC Economic Leaders' Meeting reaffirmed the shared responsibility of China and the US to ensure that their economic relationship serves as a pillar of global stability and progress. As both nations work to navigate their differences and expand their areas of cooperation, they must remain guided by the principles of mutual respect, peaceful coexistence, and win-win collaboration. A strong and stable China-US economic partnership not only benefits their respective economies but also provides a critical foundation for addressing the global challenges of our time.

By embracing openness, fostering green innovation and strengthening dialogue, China and the US can chart a path toward a more prosperous future for all. As an ancient Chinese proverb wisely observes, "When you open your arms to embrace the world, the world embraces you in return."