China and the US to advance a stable economic and trade relationship

Editor's note: Xue Tianhang is an associate researcher of the Research Center for Regional Coordinated Development, Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.

The third round of high-level China-US economic and trade talks, which drew global attention, was held in Stockholm, Sweden, on Monday and Tuesday. Chinese Vice premier He Lifeng and his US counterparts, including US lead person Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, engaged in candid, in-depth, and constructive exchanges on economic and trade issues of mutual concern, such as bilateral trade relations and macroeconomic policy. The two sides also reviewed and affirmed the implementation of the consensus reached in the economic and trade talks in Geneva and the framework agreed on in London talks.

It's important to maintain a stable and healthy bilateral relationship

According to the latest report from Xinhua News Agency, based on the new consensus reached in this round of talks, China and the US will continue pushing for the continued extension of the pause on 24 percent of US reciprocal tariffs, as well as countermeasures from the Chinese side. Li Chenggang, China international trade representative with the Ministry of Commerce and vice minister of commerce, stated that both sides are fully aware of the importance of maintaining a stable and healthy China-US economic and trade relationship, adding that the trade teams of both countries will keep close contact, communicate with each other in a timely manner on trade and economic issues, and continue to promote the stable and healthy development of the bilateral trade and economic relationship. Meanwhile, Bessent noted that technical details have not been finalized and that any extension of the suspension measures remains subject to the approval of US President Donald Trump.

In recent years, US protectionism has been on the rise, with frequent tariff hikes that have disrupted the global economic and trade order, industrial distribution, and bilateral trade between China and the US. For instance, on July 23, the US announced a 12.5 percent tariff hike on automobiles imported from Japan, raising the total tariff rate to 15 percent. On July 27, Trump announced the signing of a trade agreement with the European Union, stipulating a uniform 15 percent tariff on most EU exports to the US. Meanwhile, the US will continue to impose steep tariffs of 50 percent on steel and aluminum products. In addition, the EU also pledged to invest $600 billion in the US over the next three years and to purchase $750 billion of American energy-related products. In the case of China, since the onset of the China-US trade friction in 2018, the US has imposed steep tariffs on Chinese exports to the US worth over $500 billion. Such measures by the US will amount to nothing more than a Pyrrhic victory, inflicting significant costs on global trade while ultimately weakening the vitality of the US domestic economy and undermining its international standing.

China-US will benefit from cooperation and suffer from confrontation

History has reaffirmed that isolationism and trade protectionism lead nowhere and are unsustainable. While China-US economic and trade cooperation has faced some headwinds, the two countries remain among each other's most important trading partners. Their cooperation rests on a solid foundation and holds enormous potential for further growth. Previous bilateral talks on trade and economic affairs in Geneva and London made positive progress, producing immediate benefits for bilateral trade. According to the latest data from China's customs, China's trade with the US rose from under 300 billion yuan ($41.8 billion) in May to over 350 billion yuan in June.

China and the US stand to benefit from cooperation and suffer from confrontation. A stable China-US economic and trade relationship serves the shared interests of people and companies in both countries. China stays committed to its position that disputes should be resolved through dialogue and consultation, and hopes the US will reciprocate this approach. Based on the principles of mutual respect, peaceful coexistence, and win-win cooperation, the two sides should continue to engage in effective bilateral economic and trade consultations and jointly promote a sound, stable, and sustainable development of their economic and trade relationship, thereby injecting fresh momentum into global economic recovery and the advancement of human society.