Why stable China-US trade matters more than ever

In a time of rising global economic uncertainty and geopolitical fragmentation, the trade relationship between China and the United States remains one of the world's most consequential. Despite current tensions, it is critical to recognize that economic cooperation between the world's two largest economies is not just a bilateral matter — it is a stabilizing force with global implications.

Historically, China-US trade has been broadly mutually beneficial, contributing to prosperity and innovation in both nations. While China has consistently maintained a trade surplus in goods — fueled in part by its strength in manufacturing and export-driven growth — the US has benefited from a significant surplus in services, including education, entertainment, tourism, financial services and intellectual property licensing. US firms, particularly in the consumer, automotive, pharmaceutical and tech sectors, have flourished by tapping into China's vast and increasingly affluent domestic market. Many of these firms also benefit from access to highly educated Chinese talent, which has enriched their global competitiveness.

Conversely, Chinese companies have gained immensely from their access to US capital markets, advanced technologies and management practices. Listing on US exchanges has enabled Chinese firms to raise capital efficiently and adopt international governance standards. Many have used this foundation to modernize operations, strengthen global branding and accelerate international expansion. These interdependencies have created a deep, if complex, web of economic linkages that have underpinned global growth and innovation for decades.