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China is the world’s biggest developing country and the United States is the biggest developed country. Trade and economic relations between China and the U.S. are of great significance for the two countries as well as for the stability and development of the world economy.
Since the establishment of diplomatic relations, bilateral trade and economic ties between China and the U.S. have developed steadily. A close partnership has been forged under which interests of the two countries have become closer and wider. Both countries have benefited from this partnership, as has the rest of the world. Since the beginning of the new century in particular, alongside rapid progress in economic globalization, China and the U.S. have observed bilateral treaties and multilateral rules such as the WTO rules, and economic and trade relations have grown deeper and wider. Based on their comparative strengths and the choices of the market, the two countries have built up a mutually beneficial relationship featuring structural synergy and convergence of interests. Close cooperation and economic complementarity between China and the U.S. have boosted economic growth, industrial upgrading and structural optimization in both countries, and at the same time enhanced the efficiency and effectiveness of global value chains, reduced production costs, offered greater product variety, and generated enormous benefit for businesses and consumers in both countries.
In the area of trade, two-way trade in goods has grown rapidly. Chinese statistics show that trade in goods between China and the US in 2019 amounted to US$541.4 billion, a 215-fold increase from 1979 when the two countries forged diplomatic ties. In 2019, China exports of goods to the US amounted to US$418.67 billion, and China imports of goods from the US was US$122.71 billion.
In the area of investment, the U.S. is a major source of foreign investment for China. By the end of 2019, US-funded enterprises had over US$87.88 billion in actualized investment in China. By the end of 2019, the stock of Chinese direct investment in the U.S. amounted to approximately US$77.8 billion.
China and the US are at different stages of development. They have different economic systems. Some level of trade friction is only natural. The key however lies in how to enhance mutual trust, promote cooperation, and manage differences. For China and the US, cooperation can lead to mutual benefits while confrontation will do no good to anyone. The sound and steady development of China-US economic and trade relations is in the fundamental interests of the two peoples and the common interests of people across the globe, and is what the international community expects of us. China would like to work with the US in the same direction, act in a spirit of mutual respect and win-win cooperation, focus on economic and trade cooperation, properly manage economic and trade differences, and make vigorous efforts to foster a new China-US economic and trade order that is balanced, inclusive and mutually beneficial, so as to contribute to the well-being of the two peoples.
