China and the US must pull together to safeguard global trade stability and prosperity

Editor's note: The article was written by Zhou Jianjun, an assistant researcher at the Institute of State System Research and School of Economics, Zhejiang University. It reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.

US President Donald Trump implemented a "reciprocal tariff" policy targeting all trading partners on April 2, 2025. In particular, tariffs on Chinese goods surged to 145 percent. China firmly opposed the move and promptly introduced countermeasures. After more than a month of strategic maneuvering, the US signaled its willingness to engage in tariff negotiations through multiple channels. The two countries held a meeting on economic and trade affairs in Switzerland and made substantial progress. On May 12, the Joint Statement on China-US Economic and Trade Meeting in Geneva was officially released. The statement said the two parties commit to taking the following actions by May 14, 2025: The US would lift 91 percent of its additional tariffs on Chinese goods, and China would cancel 91 percent of its retaliatory tariffs; the US would also suspend 24 percent of its reciprocal tariffs, and China would accordingly suspend 24 percent of its retaliatory tariffs. The outcomes of this meeting are expected to ease current tariff tensions between the two countries and contribute to the stability and prosperity of global trade.

A tariff war holds no future, and there can be no true winners. While reciprocal tariffs may inflict heavy blows on other countries, can the US genuinely achieve its intended goals and emerge victorious? The answer is clearly no. Its reciprocal tariffs will severely hurt US consumers and transnational companies, amounting to digging its own grave, a typical case of harming others without benefiting oneself. The US economy contracted at an annualized rate of 0.3 percent in the first quarter of 2025, marking the first decline in three years. In March, the US trade deficit surged by 14 percent month-on-month to a record high of $140.5 billion. In April, the US Index of Consumer Sentiment, Index of Consumer Expectations, and Current Economic Conditions dropped to 52.2, 47.3, and 59.8, respectively, all significantly lower than the March figures. The US Dollar Index fell by more than 10 percent from a high of 109.96 on January 13 to a low of 98.278 on April 21. Many major global financial institutions have raised the probability of a US economic recession. JPMorgan, for instance, has raised the risk of a recession in the US economy from 40 percent to 60 percent this year. These figures reflect that the tariff policy has backfired on the US and is exerting widespread negative effects on its economy. If the tariff war is allowed to continue, all countries will pay a heavy price.

As the world's sole superpower, the US must live up to its responsibilities as a major nation. Although it proclaims itself a "beacon of democracy and freedom", the actions undertaken by the US government in recent years, especially under the Trump administration, have consistently embodied the "America First" principle, often disregarding the interests of other countries. Such conduct falls far short of the values and ideals associated with a true "beacon". In contrast, China, despite being a large developing country, has actively assumed the responsibilities of a major power and shared the dividends of its development with other countries, earning broad international recognition. Anti-globalization sentiment is surging, and the risk of a global recession is escalating. Against this backdrop, the US must set an example by actively taking on its responsibility as a major power and deepening its economic and trade cooperation with China across various areas. This year marks the 80th anniversary of the end of World War II. In the past, China and the US stood shoulder to shoulder in resisting Japanese fascist aggression and made enormous contributions to world peace. In the future, the two countries can once again work together in a common direction to remove obstacles to international economic and trade development and jointly safeguard global economic prosperity.

There is still a long way to go in China-US cooperation, and greater efforts will be needed from both sides. While the recent bilateral economic and trade talks have produced a degree of consensus, this does not mean that smooth cooperation will follow. The two countries are still divided by profound conflicts of interest, and uncertainty and instability persist. Therefore, the road to collaboration remains arduous and challenging, requiring greater efforts than ever before. When China and the US remain in harmony, the world prospers; when they clash, the world suffers. Only by seeking common grounds while shelving differences, identifying shared interests on the basis of mutual respect, and creating more opportunities for cooperation can both sides forge a healthier and more stable relationship. This is the only way to maximize their shared interests and amplify their role in propelling global growth. Their cooperation will inject greater certainty into global prosperity and prevent the world economy from sliding into the abyss of a new Cold War.