Sino-US trade volume reaches 2.76 trillion yuan in first eight months

Continued high-level engagement between China and the United States will put bilateral economic ties on a steadier footing, enabling businesses on both sides to make investments and operational decisions with greater confidence while bringing greater certainty to the global economy, experts and business executives said.

They said the new framework for China-US relations featuring "constructive strategic stability" can provide a more durable basis for bilateral economic ties, with cooperation remaining the mainstay, competition kept within reasonable bounds and differences managed through dialogue rather than allowed to disrupt broader commercial relations.

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Since the two heads of state met in Beijing in May, China and the US have made progress across a range of economic and trade issues, including tariff arrangements, the establishment of trade and investment councils, agricultural market access and aviation cooperation.

The Ministry of Commerce announced earlier this month that China and the US are in consultations on a framework arrangement for reciprocal tariff reductions covering $30 billion worth of products from each side.

Products identified as being of mutual interest could be subject to most-favored-nation tariff rates or even lower rates under the arrangement. Such an arrangement could help stabilize and expand bilateral trade and provide useful experience for broader global economic cooperation, according to information released by the ministry's department of American and Oceanian affairs.

Market watchers said the progress has added a measure of stability to bilateral economic ties, but continuing trade and technology frictions, including US restrictions on drones, telecommunications equipment and robotics, show that the relationship remains exposed to disruption.

Sun Chenghao, an assistant researcher at Tsinghua University's Center for International Security and Strategy, said years of trade and technology frictions have reshaped the economic relationship between China and the US, but deep commercial links between the two countries remain intact.

"For businesses operating across the two markets, greater policy stability and predictability are increasingly important, as sudden changes in trade, investment or technology policies can disrupt investment decisions, supply chains and long-term planning," Sun said.

Against this backdrop, Zhao Minghao, a professor and deputy director of Fudan University's Center for American Studies in Shanghai, said that managing competition will require clearer rules and stronger communication mechanisms, particularly as trade, technology and supply chain issues become increasingly intertwined with national security considerations, raising the risk of economic frictions spilling into other areas.

Zhao noted that greater certainty over tariffs could benefit businesses on both sides by improving policy visibility, preserving market access and supporting bilateral trade, investment and commercial cooperation.

US business leaders have voiced similar views, pointing to policy continuity and reliable market access as key factors shaping investment decisions, supply chain planning and future expansion in China.

Zhang Wenqing, vice-president of Corning China, said "the next China is still China", noting that the US industrial materials manufacturer has been a participant in, witness to and beneficiary of the rapid development of China's display industry. Faced with a complex and changing global environment, Corning is responding to uncertainty with continued investment in the Chinese market, he said.

The US company has operated in China for more than four decades and is expanding its optical communications capacity in Shanghai, Guangdong province and Hainan province. By the end of last year, Corning had invested a cumulative $9.5 billion in China, with the market accounting for 40 percent of its global revenue.

Beyond manufacturing, Cheng Dandan, senior vice-president of Payoneer Inc, a US financial technology company, said Chinese and US businesses remain highly complementary, with Chinese companies bringing strong supply chain capabilities, innovation and entrepreneurship, and the US offering a mature consumer market, a well-developed brand ecosystem and rich innovation resources.

"This leaves considerable room for cooperation in trade, innovation, technology and services," Cheng said, adding that a predictable trade environment would allow Chinese small and medium-sized enterprises to devote more resources to product innovation, brand building and market expansion.

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Payoneer plans to further develop its cross-border financial infrastructure and global ecosystem to support Chinese businesses expanding overseas, helping them deepen localization, broaden their international reach and strengthen the capabilities needed for long-term operations in global markets.

James Zimmerman, chairman of the Board of Governors of the American Chamber of Commerce in China, said China remains an important market for many US companies.

Zimmerman said the chamber's member companies are keen to explore how their technology, expertise, products and services can contribute to China's next stage of development and generate mutually beneficial outcomes.

Despite persistent differences between the two countries, China-US trade reached 2.76 trillion yuan ($412 billion) in the first eight months of this year, up 1.3 percent year-on-year, data from the General Administration of Customs showed.

Contact the writers at zhongnan@chinadaily.com.cn