China-US economic and trade relations remain mutually beneficial

Editor's note: Li Yong is executive director at the China Association of International Trade and co-chair of the China-US-EU Economic Strategy Research Center. 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 robust force of China-US economic cooperation remains a critical stabilizer for the world.

China is the world's largest developing country and, on average, the biggest contributor to global economic growth each year. The United States is the world's largest developed economy and ranks first in total economic size. The future course of China-US economic and trade relations thus carries profound implications not only for both nations but also for global economic stability and development. In fact, these relations are no longer simply bilateral but have become a central variable in shaping the global economic order and sustaining economic stability and prosperity worldwide.

Looking back on the decades of bilateral trade and investment cooperation since the establishment of diplomatic relations, the volume of China-US trade has soared from less than $2.5 billion dollars in 1979 to nearly $688.3 billion in 2024. China and the United States have continued to expand and advance their economic and trade cooperation, creating vast business opportunities and profits for enterprises in both countries, generating substantial employment for their people, and bringing tangible benefits to their consumers. This cooperation has also become a vital pillar underpinning the stable growth of the global economy and trade.

As two major powers at different stages of development and with distinct economic systems, it is natural for China and the United States to encounter disagreements and frictions in their economic and trade cooperation. The key lies in respecting each other's core interests and major concerns and in finding appropriate ways to resolve issues through dialogue and consultation. Win-win cooperation has always been the fundamental common ground.

Firstly, it is essential to recognize that the US trade deficit with China is both an inevitable outcome of structural issues within the US economy as well as a result of the two countries' comparative advantages and the existing international division of labor. China does not deliberately pursue a trade surplus. In fact, China's current account surplus to GDP ratio has dropped from 9.9 percent in 2007 to 2.2 percent in 2024.

Secondly, it is crucial to take an objective view in understanding and assessing the China-US bilateral trade balance. A comprehensive examination of the two countries' economic and trade relations must go beyond the balance of trade in goods. In today's world of deepening globalization and widespread internationalized production, the scope of bilateral economic and trade relations extends far beyond goods trade to encompass services trade and the local sales of a country's enterprises through their subsidiaries in the other country, i.e. local sales generated through two-way investment. When goods trade, services trade, and local sales of a country's enterprises through their subsidiaries in the other country are taken into account together, the overall benefits that China and the United States derive from their economic and trade exchanges are roughly balanced.

In recent years, both China and the United States have consistently emphasized the mutually beneficial nature of their economic and trade relations. The United States has publicly stated on multiple occasions that it has no intention of decoupling from China. In 2025, the two sides have held five rounds of talks, from Geneva to Kuala Lumpur, the outcomes of which have reaffirmed time and again that stable China-US economic and trade relations serve the fundamental interests of both nations and align with the shared expectations of the international community.  

Head-of-state diplomacy between China and the United States has always played an irreplaceable role in providing strategic direction for the development of China-US relations. Through strategic guidance, crisis management, and agenda coordination, it has offered indispensable political assurance for the advancement of bilateral economic and trade ties. China and the United States can achieve success and share prosperity together. The two countries should be partners and friends. This is both the lesson of history and a necessity of reality.

Historical experience reaffirms that the most advanced state of major-power competition is to establish new rules for coexistence through institutional innovation, thereby creating a mutually beneficial space for development. Although China-US relations currently face challenges such as technological competition and geopolitical rivalry, the intrinsic momentum of economic and trade cooperation remains robust. 

As the world's two largest economies, the healthy development of China-US economic and trade relations not only serves the fundamental interests of the people of both countries but also represents a vital driving force for global economic recovery.