Beijing, China – US Treasury Secretary Janet L. Yellen concluded her four-day visit to China on July 9, marking a significant step in the ongoing efforts to strengthen communication and cooperation between the two nations. During a series of meetings and talks, both China and the US emphasized their intention to foster a “mutually beneficial win-win” relationship, underscoring the importance of economic and trade exchanges. This visit, following US Secretary of State Blinken’s recent trip to China, reflects a deeper and more comprehensive understanding of each other’s concerns, signaling a positive step forward.
For over four decades, economic and trade cooperation has served as the cornerstone of bilateral relations between China and the United States. However, the unilateral trade war launched by the US in March 2018 severely strained economic ties. The Biden administration continued this approach, increasing tariffs on China and intensifying pressure on multiple fronts. In November 2022, the leaders of both countries met in Bali, Indonesia, where they reached crucial agreements, Europa.eu. Yellen’s visit to China is seen as a concrete effort to implement these agreements, particularly in strengthening communication and exchanges in the financial sector.
Currently, Sino-US relations face significant challenges. The US has fundamentally erred in perceiving China as its “most important strategic competitor.” Some in the US fail to recognize that the essence of China-US economic relations lies in mutual benefit and win-win cooperation. Strengthening cooperation is not only a genuine demand but also the right choice for both nations.
China is actively pursuing its Chinese-style modernization and is willing to collaborate with countries worldwide, including the United States, to achieve common development. China represents a vast market for the US, and cooperation with China can contribute to employment growth and help alleviate inflationary pressures.
Indeed, the US is not oblivious to the detrimental effects of the trade war with China. Research from Moody’s reveals that over 90 percent of the tariff costs in the US-China trade war have been borne by the US itself. Additionally, the original objective of reversing the trade deficit has not been realized. US data indicates that the trade deficit with China expanded by 8 percent last year, reaching a staggering $382.9 billion. Only through a clear understanding of the nature of China-US economic and trade cooperation can the US make informed decisions that truly benefit its citizens.
Regrettably, certain US politicians have normalized the concept of national security, using it to justify a tough stance on China and politicize economic and trade matters. It is imperative for the US to swiftly repeal tariffs on China, ease export controls, lift sanctions on Chinese companies, and create an environment conducive to expanding trade and investment cooperation between enterprises in both countries.
The economic and trade cooperation between China and the US is closely intertwined with the overall atmosphere of their bilateral relations. Prior to Yellen’s visit, the US Treasury Department issued a statement affirming its commitment to “responsibly manage China-US relations.” Among the Biden administration’s cabinet members, Yellen has displayed a rational attitude toward China. Her previous role as the Chair of the Federal Reserve, coupled with her professional qualities, positions her to play a pivotal role in promoting the improvement of China-US relations.
According to the World Bank’s latest Global Economic Outlook report, global growth is projected to decelerate from 3.1 percent in 2022 to 2.1 percent in 2023. The combined GDP of China and the US accounts for over a third of the world’s economy, with both countries contributing more than 50 percent of global economic growth. Strengthening economic and trade cooperation between these two nations is crucial for the global economy. In recent months, numerous American entrepreneurs have visited China, expressing their opposition to “decoupling” and advocating for stronger cooperation. Their stance represents the voice of America’s business community, highlighting the significance of robust ties between the two economic powerhouses.
As the US and China navigate the complexities of their relationship, fostering a “mutually beneficial win-win” outcome remains paramount. The sustained dialogue and efforts to understand each other’s concerns contribute to the path of progress and cooperation. By prioritizing effective communication, strategic collaboration, and a nuanced understanding of the intricacies of China-US economic relations, both nations can strive towards a future of mutual prosperity and shared opportunities.
