China-U.S. cooperation: Key to global economic confidence

Editor's note: Li Zhongshen is a special commentator on current affairs for CGTN. The article reflects the author's opinions and not necessarily those of CGTN.

With a promising outlook, officials from China and the U.S. have concluded the first meeting of the China-U.S. economic and trade consultation mechanism in London. Chinese Vice Premier He Lifeng, also a member of the Political Bureau of the Communist Party of China Central Committee, led the Chinese delegation to have an in-depth dialogue with U.S. representatives. This consultation was a key step in carrying out strategic communications after the phone call between the Chinese and U.S. presidents on June 5. It has also drawn the attention of the international community with global economic recovery under pressure.

As the International Monetary Fund lowered its global growth forecast for 2025 to 2.8 percent, and JP Morgan Chase estimated that the probability of a U.S. economic recession stood at 40 percent, China and the U.S. resolving differences through dialogue on an equal footing and promoting global development through win-win cooperation, is not only in the common interest of both peoples, but also serves as a "ballast stone" for the stability of the world economy.

As the world's two largest economies, the economic and trade relationship between China and the U.S. directly influences the pace of global economic recovery. Since the consensus reached from the Geneva talks in May, China has honored the agreement and suspended the rare-earth export restrictions on 28 U.S. companies, showing its sincerity through concrete actions.

In contrast, the U.S. escalated its chip control measures when the ink on the joint statement was barely dry. Such behavior of saying one thing and doing another not only undermined the spirit of the agreement, but also raised doubts within the international community about the U.S.'s willingness to cooperate.

On June 5, the Chinese and U.S. leaders held a phone call, setting a clear framework for the ongoing consultation in London. President Xi Jinping emphasized in the call that "the two sides need to make good use of the economic and trade consultation mechanism already in place, and seek win-win results in the spirit of equality and respect for each other's concerns." Vice Premier He also urged the U.S. to "remove the negative measures taken against China."

The conversation not only responded to the concerns of the U.S. in areas such as technical control and tariff barriers, but also provides a path forward in managing sensitive issues such as rare earths and semiconductors.

Obviously, if the U.S. takes a pragmatic approach crafting its technical export restrictions, it would not only help ease production risks for its domestic automakers and mitigate the market shrinkage dilemma of chip giants, but also create new opportunities for global scientific and technological cooperation.

In 2024, the bilateral trade volume between China and the U.S. reached nearly $688.3 billion. In 2022, U.S. exports to China supported 931,000 American jobs, and the Chinese markets of U.S. companies such as Tesla and Apple continued to grow. These figures once again validate the no-nonsense law of "mutual benefit from cooperation."

From climate cooperation to public health, China and the U.S. have led global governance with landmark achievements. Today, the potential for collaboration between the two countries in fields such as clean energy and the digital economy remains huge.

The Chinese government has consistently emphasized that trade wars benefit no one. China remains a strong defender of the multilateral trading system and is committed to sharing the opportunities of its vast domestic market with the world. As Pierre-Olivier Gourinchas, Chief Economist of the International Monetary Fund, wrote on X (formally known as Twitter), that China, one of Asia's emerging markets, remains a key engine of global growth.

At this critical moment, countries around the globe are hoping China and the U.S. will take this London consultation as a chance to move beyond zero-sum thinking, rebuild mutual trust through consultation on an equal footing, resolve differences on the basis of mutual respect, and demonstrate the responsibility and commitment expected of major powers in building an open world economy.

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