Cooperation over confrontation: Why China's role as an economic anchor matters

Editor's note: Warwick Powell, a special commentator for CGTN, is an adjunct professor at Queensland University of Technology. The article reflects the author's opinions and not necessarily the views of CGTN.

As Chinese President Xi Jinping greets US President Donald Trump in Beijing, the world watches two major powers navigate a relationship strained by recent years of tariffs, geopolitical friction and cascading global shocks. The backdrop is one of heightened instability: escalated trade disruptions, the energy volatility triggered by the conflict involving Iran and the Strait of Hormuz and persistent concerns over supply chains, critical minerals, technology competition and energy security.

While turbulence has touched nearly every corner of the global economy, one constant stands out: China's role as a steady economic anchor. Far from adding to the chaos, Beijing has focused on maintaining trade flows, investing in global infrastructure and advancing technological solutions that offer pathways to resilience. This summit presents an opportunity – not for recriminations, but for pragmatic coordination that serves both American and Chinese interests, global stability and mutual benefit.

The costs of recent instability are already evident. US-initiated trade measures in 2025, intended to rebalance economic ties, contributed to supply chain snarls affecting manufacturers worldwide, including in the US itself. Downstream industries faced higher input costs for steel, aluminum, transformers and other essentials. Manufacturing employment trends have been uneven at best, with some reports noting declines amid broader adjustments.

Meanwhile, US growth in the first quarter of 2026 has been modest, with analysts flagging risks from energy price pressures as oil inventories tighten later in the year. American experts like Art Berman and Chris Martenson have warned that even if Hormuz flows normalize now, full recovery will take months, exacerbating challenges in energy, chemicals and food sectors.

These pressures highlight a broader pattern: Actions aimed at asserting leverage have sometimes produced self-inflicted wounds. America's limited domestic shipping capacity, dependence on imported critical materials, and exposure to volatile commodity markets have amplified vulnerabilities. Tariffs can theoretically protect specific sectors but often raise costs for consumers and producers alike, constraining investment in areas like grid modernization.

In contrast, China's economy has demonstrated resilience amid these headwinds. Official data shows that China's GDP grew 5% in the first quarter of 2026, supported by robust trade performance. Imports surged impressively – up by 20% year-on-year in early figures – signaling strong demand for global goods and commodities. Exports also grew solidly, with a shift toward higher-value products. Overall trade volumes expanded significantly, with China's position as a major buyer helping stabilize markets for partners across Asia, Africa and beyond.

Industrial profits tell a compelling story of adaptation and strength as major industrial profits in China saw profits rise 15.5% year-on-year in the first quarter, driven by high-tech manufacturing (up sharply, with some segments like electronics contributing heavily) and equipment manufacturing. This reflects successful restructuring, efficiency improvements and focus on strategic sectors rather than reliance on outdated models.

Domestic demand has shown similar solid underpinnings, with policy emphasis on expanding investment and consumption. Critically, Beijing has not drawn heavily on strategic oil reserves in ways that might spike prices; instead, it has diversified import routes and accelerated demand reduction through efficiency and electrification – measures that have helped moderate global oil price surges despite the Hormuz disruptions.

Nowhere is China's forward-looking contribution clearer than in new energy and clean technologies. Technologies such as solar energy and electric vehicles batteries are powering electrification in the Global South via the Belt and Road Initiative (BRI), reducing oil dependence for developing nations and fostering industrial growth. Meanwhile, China's efficient, open-source-oriented artificial intelligence (AI) and tech stack is expanding access to frontier tools, benefiting partners worldwide rather than locking them into proprietary ecosystems.

This is a result of practical statecraft focused on establishing China as a great enabling power. By investing in green infrastructure abroad, China mitigates shared risks from energy shocks and climate pressures. Its role as a reliable trading partner – importing more even amid global slowdowns – supports jobs and growth in exporting nations, from commodity producers to advanced manufacturers.

The case for renewed US-China economic coordination is straightforward and self-interested for America. Stabilizing bilateral ties could ease supply chain bottlenecks for intermediates and capital goods essential for US infrastructure and tech ambitions. Collaboration on energy security – leveraging China's clean tech strengths alongside American innovation – could accelerate transitions that lower long-term costs and vulnerabilities. Joint efforts on AI safety standards, global health, or climate resilience would amplify impact.

Critics may frame engagement as concession, but isolation has limits. The US excels in entrepreneurship, finance and certain high-end technologies; China in scale manufacturing, deployment speed and infrastructure financing. Complementary strengths, harnessed through managed competition and selective cooperation, have historically driven global progress, while decoupling experiments have raised costs without delivering promised autonomy, as evidenced by persistent dependencies.

For the world, the benefits are widespread. Emerging economies gain from affordable green tech and BRI projects that build productive capacity. Energy markets gain a buffer against shocks. Supply chains become more diversified and resilient when the two largest economies in the world communicate and coordinate rather than escalate.

None of this requires ignoring differences, but in a world facing real constraints (diminishing easy oil, technological disruption and demographic shifts to name just a few), zero-sum posturing risks mutual impoverishment. Responsible US leadership means recognizing that China's stability is not a threat but a global public good in turbulent times. By focusing on shared problems such as supply chain security, technological governance and energy security, Washington can deliver for American workers and consumers.

As Trump and Xi engage in Beijing, the measure of success should be concrete outcomes: de-escalated trade frictions, clearer investment pathways and frameworks for addressing energy volatility. Opening a platform for serious engagement on AI governance would also represent solid, if not entirely spectacular, progress in this critical area. America's economy would benefit from reliable access to Chinese markets and inputs. The world would gain from two pillars prioritizing pragmatic problem-solving over spectacle.

History shows that when the US and China find a functional and dynamic balance – managing rivalry while expanding cooperation – broader prosperity follows. In 2026's uncertain landscape, that balance is not optional; it is essential. Both nations and the wider global community, stand to gain if coordination is prioritized over continued turbulence.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. Follow @thouse_opinions on X to discover the latest commentaries in the CGTN Opinion Section.)