Editor's note: Pang Chaoran is a research fellow at the Chinese Academy of International Trade and Economic Cooperation, the Ministry of Commerce. This article reflects the author's opinions and not necessarily those of CGTN. It has been translated from Chinese and edited for brevity and clarity.

China and the United States are the world's two largest economies. Due to their massive economic scale, broad ties, and far-reaching influence, their industrial and supply chains are deeply intertwined. Over the past year or so, the two sides have progressively narrowed differences and built consensus. This clearly demonstrates that so long as both nations adhere to mutual respect, equality, and reciprocity, dialogue and cooperation offer a viable path to resolving complex challenges.

Driven by the economic and trade consultation mechanism, the two sides have continuously expanded the list of cooperation areas while shortening the list of outstanding issues, playing a positive role in maintaining overall stability in China-US economic and trade relations.

Bilateral economic and trade consultations serve as a vital "stabilizer" for deepening communication and reaching strategic consensus. Since last year, China and the US have engaged in eight rounds of economic and trade talks and have delivered a range of reciprocal, balanced, and positive outcomes related to bilateral trade and investment. During this latest round, both sides agreed to extend the Kuala Lumpur economic and trade arrangement to January 10, 2027, providing a solid foundation for deeper discussions on bilateral economic and trade solutions, while creating room for both sides to explore ways to advance China-US economic and trade relations.

Bilateral economic and trade consultations also serve as a powerful "engine" for expanding the scope of trade and investment cooperation. Under the economic and trade consultation mechanism, China and the US agreed to establish a trade council. The two sides agreed to reduce tariffs on about $30 billion worth of goods imported from each other on a reciprocal basis, with tariffs on around 90% of the covered products to be lowered to most-favored-nation rates. The two sides also agreed to establish an agricultural working group under the Board of Trade. Overall, the economic and trade consultation mechanism has evolved to an essential institutional framework for managing bilateral economic and trade relations. By bringing highly specialized issues, such as tariffs, investment, inspection and quarantine, and technology governance, into a sustained dialogue process, it provides a solid institutional guarantee for continuously broadening future cooperation.

Bilateral economic and trade consultations further serve as an "anchor" for stabilizing market expectations. For the business community, policy predictability is a cornerstone of a sound business environment. The major outcomes achieved in this round of economic and trade consultations have provided businesses in both countries and global markets with much-needed reassurance. 

Promoting the sustained and stable improvement of China-US economic and trade relations contributes to bilateral economic and trade cooperation as well as global economic development.

The outcomes achieved in this round of consultations will help stabilize the existing base of bilateral trade and investment while establishing new institutional frameworks for cooperation, giving both sides a broader reservoir of shared interests to safeguard when managing differences and enabling economic and trade cooperation to serve as a stronger anchor for the steady, long-term growth of China-US relations.

The outcomes of this round of economic and trade consultations will also help expand cooperation into new fields and generate new cooperative growth. In the past, the economic and trade competition between China and the US focused heavily on the existing stock of trade and investment, which essentially amounted to a redistribution of existing interests within established boundaries. Today, as bilateral consultation outcomes continue to accumulate, the boundaries of cooperation are expanding into emerging areas such as artificial intelligence. This will help enlarge the pie of common interests while resolving existing frictions through new cooperative gains, ultimately creating greater strategic maneuverability for addressing long-term structural differences.

The outcomes of this round of economic and trade consultations will also help inject greater certainty and stability into the global economy. As two major economies with global influence, China and the US share a relationship that extends far beyond the bilateral context. If the two sides can manage their differences through dialogue and expand shared interests through cooperation, they can preserve an open global division of labor and prevent major-power rivalry from driving the global economy toward artificial fragmentation and redundant investment. This will also enable nations to channel more resources into innovation, public welfare, and addressing common challenges facing humankind. In this sense, stable China-US economic and trade relations are a vital global public good, benefiting companies and consumers worldwide while creating more opportunities for all countries, especially developing ones, to participate in the global division of labor and share the dividends of economic development.

(Cover via VCG)