Changes unseen in a century are accelerating across the world. The global economic recovery remains fragile. Against this backdrop, the trajectory of China-US relations – particularly the sound and stable development of economic and trade ties – concerns not only the wellbeing of both peoples but also global peace and prosperity.
Chinese President Xi Jinping and US President Donald Trump successfully held talks last Thursday in Busan, South Korea. The two leaders exchanged in-depth views on China-US relations and issues of mutual concern, injecting valuable certainty and stability into bilateral relationship at a crucial crossroads.
The meeting once again underscored that a stable China-US economic and trade relationship benefits both countries and the world. In the face of headwinds and challenges, the two heads of state – as the helmsmen – must steer the right course and ensure that the “ship” of China-US relations sails steadily forward.
In recent years, China-US relations have experienced ups and downs. Yet, at every critical moment, head-of-state diplomacy has played an irreplaceable strategic guiding role. From San Francisco to Busan, President Xi and President Trump have maintained regular communication, steering the direction of bilateral ties. Xi emphasized that “In the face of winds, waves and challenges, we should stay the right course, navigate through the complex landscape and ensure the steady sailing forward of the giant ship of China-US relations,” during the meeting with Trump in Busan.
This fully reflects the Chinese leadership’s deep sense of responsibility and strategic initiative toward China-US relations.
Given differences in history, culture, social systems and stages of development, it is natural for China and the US to have divergences and frictions. The key lies in how such differences are managed. By upholding the fundamental norms of international relations and respecting each other’s core interests and major concerns, on the basis of the consensus reached between the two leaders win the broad support of both peoples and the international community, ensuring the shared maintenance of the relationship’s direction.
The stability of the two countries’ economic and trade relations extends far beyond the bilateral level – it is deeply integrated into and profoundly influences the stability and growth prospects of the global economy.
China-US trade constitutes a vital component of global trade flows. Smooth bilateral trade can effectively underpin the steady growth of global commerce. Conversely, an escalation of trade frictions between China and the US would inevitably produce strong negative spillover effects – disrupting global supply chains, raising transaction costs, eroding investment and consumer confidence, and thus dragging down global economic growth. WTO Director-General Ngozi Okonjo-Iweala has said that any China-US tensions would have implications for the two biggest economies, and for the rest of the world.
Moreover, China and the US occupy key positions in global industrial and supply chains. In today’s globalized economy, the production of nearly all complex goods depends on cross-border supply networks. As central nodes in these systems, the stability of China and the US’ trade and economic policies directly impacts production and employment across numerous economies up and down the chain.
In recent years, the US has promoted policies of “de-risking,” “decoupling” and “reciprocal tariffs,” while abusing export controls and extraterritorial jurisdiction. Such actions not only harm both Chinese and American businesses but also undermine the market-based global division of labor, forcing companies into costly and inefficient supply chain restructuring – thereby increasing systemic risks to the global economy.
China, by contrast, has consistently worked to safeguard the stability and smooth functioning of global industrial and supply chains. A stable and healthy China-US economic and trade relationship helps enhance the overall efficiency and resilience of the global economy.
Beyond managing differences, another important aspect of China-US relations is expanding new areas of cooperation. Looking ahead, there is vast potential for cooperation in promoting green and low-carbon development, maintaining international financial stability, governing emerging technologies such as artificial intelligence, and advancing sustainable development. Their mutual support and coordination within platforms such as APEC and the G20 will inject strong momentum into improving global economic governance and guiding economic globalization toward a direction that is more open, inclusive, balanced and beneficial for all.
The author, Dun Zhigang, is a research fellow at the Chongyang Institute for Financial Studies, Renmin University of China.
