By Zhong Sheng, People’s Daily
On April 9, China’s State Council Information Office released a white paper titled “China’s Position on Certain Issues Concerning China-U.S. Economic and Trade Relations,” clarifying the facts about China-U.S. economic and trade relations, and elaborating the position of the Chinese side on relevant issues.
Drawing on extensive factual evidence, the white paper demonstrates that China-U.S. economic and trade relations is mutuallybeneficial and win-win in nature. Yet the U.S. has repeatedly imposed unilateral tariffs, undermining the development of bilateral trade relations at the cost of both sides.
China-U.S. economic and trade relations are shaped by market forces and underpinned by strong internal dynamics. In international trade relations, countries exchange products based on their comparative advantages to realize their own value, meet each other’s needs, and achieve common development. This is a fundamental economic and trade principle.
Since the establishment of diplomatic relations between China and the U.S., the volume of trade has surged from less than $2.5 billion in 1979 to nearly $688.3 billion in 2024. This exponential growth was driven by the two countries’ highly complementary strengths in natural resources, human capital, markets, investment, and technology, leading to deeply integrated economic ties. The notion that the U.S. is losing out in trade with China is simply unfounded.
The economic and trade cooperation between China and the U.S. has generated substantial benefits for both sides, with the U.S. benefiting no less than China.
UN data shows that in 2024, China was the destination for 51.7 percent of U.S. soybean exports, 29.7 percent of its cotton exports, 17.2 percent of its integrated circuit exports, 10.7 percent of its coal exports, 10.0 percent of its liquefied petroleum gas exports, 9.4 percent of its medical equipment exports, and 8.3 percent of its passenger motor vehicle exports.
In 2022, the number of American jobs supported by exports to China was 931,000. That same year, there were a total of 1,961 American enterprises (businesses holding a majority equity stake and having assets, sales, or net revenue of above $25 million) operating in China, with a combined total sales of $490.52 billion.
The U.S. has imported from China a large quantity of consumer goods, intermediate goods, and capital goods, which has supported the development of the supply and industrial chains of the U.S. manufacturing industry, provided U.S. consumers with more choices, lowered their cost of living, and increased the real purchasing power of the American people – especially the low and middle-income groups.
By fixating on the merchandise trade deficit, the U.S. distorts the reality of China-U.S. economic relations. The trade balance in goods between China and the U.S. is both an inevitable result of the structural issues in the U.S. economy and a consequence of the comparative advantages and international division of labor between the two countries. It is also an outcome of differing statistical approaches.
China never deliberately pursues a trade surplus. In fact, it has been actively expanding imports in recent years, striving to make its vast domestic market a globally shared one. The value-added accrued by China from much of the export of processed manufactured goods represents only a minor fraction of the total value of all commodities. Calculated by the trade in value-added method, the U.S. trade deficit with China would significantly decrease.
A comprehensive and in-depth assessment is required to objectively evaluate whether China-U.S. bilateral trade is balanced, as it cannot be based solely on trade in goods.
In 2023, the U.S. registered a surplus of $26.57 billion in service trade – a notable advantage for the country. Furthermore, in 2022, the sales revenue of the U.S.-owned enterprises in China reached $490.52 billion, significantly exceeding the $78.64 billion in sales revenue generated by Chinese-owned enterprises in the U.S.
When the three factors of trade in goods, trade in services, and the local sales of domestic enterprises’ branches in the other country are taken into full account, it can be seen that the economic and trade benefits gained by China and theU.S. are roughly balanced.
The rise of unilateralism and protectionism in the U.S.has led to repeated imposition of unilateral tariffs against China, significantly impeding the course of normal economic and trade cooperation between the two countries.Looking back, what has the U.S. really gained from years of tariff and trade wars? Has the overall trade deficit narrowed or widened? Has the competitiveness of U.S. manufacturing improved or declined? Has inflation eased or worsened? Has the American people’s standard of living improved or deteriorated? The answers should be clear to Washington.
The latest so-called “reciprocal tariff” plan will only increase the burden on American households and hurt the future of American industries. In recent days, protests erupted in dozens of cities across the U.S. against this plan, and many market institutions have lowered their growth forecasts for U.S. economy this year.
The Peterson Institute for International Economics assesses that over 90 percent of the tariff costs will be borne by U.S. importers, downstream businesses, and ultimately, through higher prices, by the end consumers. The U.S. should not disregard the interests of the two countries and the international community by insisting on fighting tariff wars and trade wars.
There are no winner in a trade war. China does not seek one – but neither will it tolerate any infringement upon the legitimate rights and interests of the Chinese people. The Chinese government will continue to take firm countermeasures against U.S. economic coercion.
The Chinese side has always maintained that it is natural for China and the U.S. to have differences and frictions in their economic and trade cooperation. It is crucial to respect each other’s core interests and major concerns, and find proper solutions to resolve the issues through dialogue and consultation.
The U.S. should move in the same direction with China, immediately remove the unilateral imposition of tariffs, strengthen dialogue, manage differences, promote cooperation, and jointly promote the healthy, stable and sustainable development of bilateral economic and trade relations.
(Zhong Sheng is a pen name often used by People’s Daily to express its views on foreign policy and international affairs.)
