How China-US talks in Paris offer stability amid global uncertainty

Editor's note: Lyu Yue, a special commentator on current affairs for CGTN, is associate dean of the School of International Economics and Trade, University of International Business and Economics (UIBE). The article reflects the author's opinions and not necessarily the views of CGTN.

Global geopolitics and macroeconomics are currently facing severe challenges. The conflict in the Middle East continues to escalate, with the United States military conducting "Operation Epic Fury" against Iran. The Strait of Hormuz faces blockade risks, disrupting oil shipments from the Persian Gulf and directly driving up global energy prices and inflation expectations.    

Concurrently, economic and trade frictions between China and the US occur frequently. Although the US Supreme Court ruled that the massive "Liberation Day" tariffs previously imposed by the United States government were unconstitutional, the United States government subsequently introduced new import surcharges under Section 122 of the Trade Act of 1974, and initiated two consecutive Section 301 investigations against economies including China, citing alleged overcapacity and forced labor issues.

Against this turbulent backdrop, Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent held the latest round of China-US economic and trade consultations at the headquarters of the Organisation for Economic Cooperation and Development in Paris, France, from March 16 to March 17. The pragmatic engagement between China and the United States injected scarce certainty into the global economy.

The Paris talks reached preliminary consensus on multiple key issues, with specific outcomes reflected in the fact that both sides agreed to consider establishing a mechanism promoting bilateral cooperation on trade and investment. Also, regarding bilateral tariff issues under the new situation, China has reiterated its opposition against the unilateral tariffs imposed by the United States, urging Washington to completely remove such tariffs and other restrictive measures.

The substantive progress achieved in the China-US economic and trade consultations has produced a direct and profound stabilizing effect on the global economy. In the dimension of stabilizing global expectations, the in-depth and constructive exchanges between Chinese and US representatives signaled a shared willingness to resolve differences through consultation. This pragmatic model of engagement set a competitive floor for the global market, easing external panic about a full-scale confrontation between the two countries.

From the perspective of securing supply chains, as ongoing crises in the Persian Gulf continue to put pressure on global shipping and energy supply chains, the dialogue between China and the US on key minerals, high-tech products, agriculture and energy underscores their shared interest in maintaining the smooth operation of global industrial chains and financial stability.

In terms of mechanism building, both sides have explored the establishment of bilateral working mechanisms while continuing to utilize existing consultation mechanisms. The institutionalization of high-level dialogues helps prevent the spiraling escalation of trade frictions and provides greater long-term predictability for multinational enterprises in their global investment and operations.

Looking ahead to the trajectory of China-US economic and trade relations, the game between two sides has evolved from pure commodity exchanges to a more complex form of strategic cost-sharing. Meanwhile, differences between the two countries in areas such as unilateral Section 301 investigations and high-tech export controls still exist, and reaching a rules-based agreement still requires time.

This year marks an important juncture in China-U.S. relations. China will host the 33rd Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting, while the United States will host the Group of 20 Summit. China and the United States have expressed clear willingness to support each other in successfully convening these major international events. These multilateral stages will provide broad space and valuable opportunities for continued interaction and expansion of pragmatic cooperation between the heads of state of both China and the United States.

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