The complementary advantages and win-win coexistence of China US economic and trade relations (bell ringing)

The first meeting of the China US Economic and Trade Consultation Mechanism is being held in London, which is another important opportunity for both sides to resolve differences through equal dialogue and consultation. All sectors of China, the United States, and the international community look forward to both sides implementing the consensus reached during the phone call between the two heads of state, adding certainty and stability to their respective development and global economic recovery.

Promoting dialogue and consultation requires a rational and objective view of each other's economic and trade relations. After decades of development, China US economic and trade cooperation has formed a pattern of complementary advantages and mutual benefit. The healthy development of economic and trade relations between the two countries has not only benefited the people of both countries, but also made important contributions to world economic growth. Objective analysis of data shows that the benefits of economic and trade exchanges between China and the United States are roughly balanced. The US has a trade deficit in goods with China, which is not only an inevitable result of structural problems in the US economy, but also determined by the comparative advantages of the two countries and the international division of labor. In the fields of service trade and cross-border operations, the United States has a clear advantage. In 2024, the US trade surplus in services with China will reach $27.3 billion. In 2022, the sales revenue of American companies in China reached $490.5 billion, far exceeding the sales revenue of Chinese companies in the United States of $78.6 billion, with a difference of over $400 billion. Taking into account the three factors of goods trade, service trade, and local sales of domestic enterprises in the other country's branches, there is no problem of who is at a disadvantage or who is at an advantage in Sino US economic and trade exchanges.

As is well known, China's exports to the United States contain a large amount of international division of labor, and the current method of goods trade statistics calculates China's exports based on the total value (the full amount of goods exported by China to the United States). If calculated based on trade value added, the US trade deficit in goods with China will be significantly reduced. China does not deliberately pursue a trade surplus. In fact, the ratio of China's current account surplus to GDP has decreased from 9.9% in 2007 to 2.2% in 2024. In recent years, the proportion of the US goods trade deficit with China in its overall goods trade deficit has decreased, from 47.5% in 2018 to 24.6% in 2024. The United States has repeatedly set new records for its global trade deficit in goods, reaching $1.2 trillion by 2024. This once again proves that the main reason for the US trade deficit in goods is its own economic structure.

The potential for US exports of goods to China has not been fully unleashed, which is closely related to the US's own policies. The comparative advantage of the United States lies in high-tech industries, but in recent years, the US has abused the concept of national security and politicized economic and trade issues. After the Geneva economic and trade talks between China and the United States, the US has successively introduced multiple discriminatory restrictions against China, including the release of AI chip export control guidelines and the suspension of sales of chip design software (EDA) to China. The endless restrictive measures have led American companies to miss out on opportunities in the Chinese market. The fact has repeatedly proven that "small courtyards with high walls" and "decoupling and chain breaking" violate economic laws and hinder normal economic and trade exchanges between enterprises of the two countries.

China firmly promotes high-level opening up, actively expands imports, and provides more opportunities for countries around the world, including the United States. From leveraging important exhibition platforms such as the China International Import Expo, Canton Fair, China International Fair for Trade in Services, and China International Consumer Fair to promoting the cultivation of national import trade innovation demonstration zones, and continuously improving the level of import trade facilitation, China continues to tap into the potential of imports and build its super large market into a world shared market, injecting new momentum into global economic development.

The real picture of China US economic and trade relations is complementary advantages and win-win coexistence. Only by dismantling the artificially set "iron fence" and opening up the "two-way road" of economic and trade cooperation can we promote the stable and healthy development of China US economic and trade relations. As the world's top two economies, strengthening economic and trade cooperation between China and the United States is not only beneficial for their respective development, but also provides important guarantees for the stability of global industrial and supply chains.

We believe that through equal consultation and pragmatic cooperation, China and the United States can find mutually beneficial and win-win solutions. I hope both sides can work together to create favorable conditions for normal economic and trade activities between the two countries' enterprises, so that the fruits of cooperation can better benefit the people of both countries and make greater contributions to global economic recovery and growth.