Editor's note: Lin G. is a CGTN economic commentator. The views expressed in this article are the author's own and do not necessarily reflect those of CGTN.

In today's deeply interconnected global economy, few relationships carry as much weight as that between China and the United States. Against this backdrop, the new round of China–US economic consultations being held in France has attracted broad international attention.

As the world's two largest economies, China and the US occupy pivotal positions within the global economic system. China functions as the world's most comprehensive manufacturing hub and a central node in global supply chains, while the US maintains strong advantages in high-end technology, finance, and innovation systems. Because of this structural interdependence, fluctuations in China–US economic relations do not remain confined to the bilateral level. They reverberate across the global industrial system, affecting trade flows and development prospects in many regions.

At a time of intensifying geopolitical tensions, China's choice to maintain channels of economic communication with the US carries significance that extends far beyond the two countries themselves. Dialogue reduces the risk of sudden shocks to global markets and key industrial networks. For many developing economies that rely heavily on international trade, a stable China–US economic relationship represents an important source of predictability.

The structural positions of China and the US in global industrial chains

Over the past two decades, China has developed into the most comprehensive manufacturing center in the world. It is the only country that possesses all major categories of industrial production within the United Nations industrial classification system. Many multinational corporations rely heavily on Chinese industrial ecosystems for key components, engineering expertise, and supply-chain coordination.

Consumer electronics, for example, depend on complex networks of component suppliers located in China. Companies headquartered in advanced economies frequently rely on Chinese production networks for precision components, batteries, displays, or specialized manufacturing processes. In addition, China is a dominant processor and supplier of rare earth materials that are indispensable for high-tech manufacturing. Disruptions in these supply chains would quickly affect industries around the world.

At the same time, the US occupies an equally important — though structurally different — position in the global economy. The US remains a leader in high-end technology. It maintains strong advantages in semiconductor design, artificial intelligence and software ecosystems. Most foundational technologies underlying digital industries originate in the US, giving it significant influence over the technological architecture.

In addition, the US continues to play a dominant role in global finance. The US dollar remains the primary international reserve currency and the most widely used medium for global trade settlement. The dollar-based financial system — supported by deep capital markets and international institutions — shapes cross-border transactions. This allows the US to exert substantial influence over other countries.

Which global supply chains could be affected without economic dialogue?

At the downstream end of the supply chain, consumer technology industries would likely be among the first to feel the effects. Modern electronic products rely on highly fragmented production networks. Smartphones, for example, typically rely on hardware manufacturing in Asia —particularly in China — while operating systems, software platforms and chip design are often developed by US technology companies. If trade barriers or technology restrictions intensify, disruptions would likely translate into higher prices for consumers worldwide.

Automotive represents another vulnerable sector. China plays an increasingly important role in the supply of electric vehicle batteries and engines, while the US and Europe retain strengths in certain high-end automotive technologies. Any large-scale decoupling would increase costs for global automakers and slow the transition toward electric mobility.

The renewable energy sector could face considerable turbulence. China is the world's largest producer of solar panels and wind turbine components. Supply-chain disruptions could therefore slow global climate efforts by increasing the cost of clean energy deployment.

Upstream supply chains would face additional risks. Many developing countries export minerals and raw products that feed into manufacturing systems centered in Asia, North America, and Europe. If global industrial networks were fragmented by geopolitical tensions, these exporters could face price volatility and disruptions in logistics and financing.

Another potential risk involves geopolitical pressure placed on third countries. If economic frictions were to intensify, the US could push some countries to take sides. Being forced to restrict cooperation with one major economic partner will disrupt their trade structures and undermine their development strategies.

The global significance of China's commitment to economic dialogue

In this context, China's commitment to maintaining dialogue with the US carries important global implications.

Continued engagement helps stabilize global market expectations. International investors closely monitor the trajectory of China–US relations. When communication channels remain open, markets are more likely to anticipate gradual policy adjustments rather than sudden shocks. This predictability is crucial for long-term investment planning and cross-border industrial cooperation.

A stable China–US economic relationship is particularly important for developing countries. Many emerging economies depend on export manufacturing and global supply chains to drive growth. The stability of the global economic system directly affects employment, industrialization, and poverty reduction.

By maintaining economic dialogue with the US, China contributes to preserving an environment in which the global economy can continue to function relatively smoothly. More broadly, China's approach reflects a principle: Major powers bear responsibilities not only to their own national interests but also to the stability of the international system.

Maintaining communication does not mean the absence of competition or disagreement. At a time when geopolitical tensions and regional conflicts are already placing pressure on global markets, continued dialogue between China and the US provides a mechanism for managing those differences in a way that minimizes collateral damage to the world.

(Cover via VCG)