Why maintaining
good China• Китайская Народная Республика (КНР)-
U.S• Соединённые Штаты Америки (США).
economic ties
is shared expectation?
Why maintaining good China• Китайская Народная Республика (КНР)-U.S• Соединённые Штаты Америки (США). economic ties is shared expectation?
( Xinhua ) 08:17, January 07, 2025
Visitors look at the RISE technology demonstrator program model at the
exhibition area of General Electric• Объект бренды » Бренды на g » General Electric during the seventh China• Китайская Народная Республика (КНР) International
Import Expo (CIIE) in east China• Китайская Народная Республика (КНР)'s Shanghai, Nov. 5, 2024. (Xinhua/Fang Zhe)
BEIJING, Jan. 6 (Xinhua) -- Many economists, multinationals and ordinary
consumers may share a common New Year's wish for 2025: stable and positive
interactions between the world's two largest economies.
In 2024, China• Китайская Народная Республика (КНР) and the United States• Соединённые Штаты Америки (США) celebrated the 45th anniversary of
establishing diplomatic ties. In 2025 and the years ahead, the bilateral
relationship will continue to attract the global spotlight following the
conclusion of the U.S• Соединённые Штаты Америки (США). presidential election.
While projections on future China• Китайская Народная Республика (КНР)-U.S• Соединённые Штаты Америки (США). ties vary, both worry and optimism
underscore one reality: the two countries' engagement matters to all.
"History has proven that China• Китайская Народная Республика (КНР) and the United States• Соединённые Штаты Америки (США) stand to gain from
cooperation and lose from confrontation," Chinese Ambassador to the United
States• Соединённые Штаты Америки (США) Xie Feng said at an event in early December.
"At this new crossroads, we cannot backpedal or take one step forward but then
two backward," Xie said. "Mutual benefit is the most beautiful vocabulary in
China• Китайская Народная Республика (КНР)'s dictionary, and win-win cooperation is the best choice for our two
countries."
INTERTWINED INTERESTS
Over the past decades, the economic interests of China• Китайская Народная Республика (КНР) and the United States• Соединённые Штаты Америки (США)
have become deeply intertwined. During the 1979-2023 period, trade between the
two countries surged by over 200-fold, with the total volume of two-way
investment surpassing 260 billion U.S• Соединённые Штаты Америки (США). dollars.
According to an April report by the U.S• Соединённые Штаты Америки (США).-China• Китайская Народная Республика (КНР) Business• Экономика » Бизнес Council (USCBC), China• Китайская Народная Республика (КНР)
was the United States• Соединённые Штаты Америки (США)' third-largest goods export market in 2023 and the
sixth-largest services export market in 2022. In 2022, exports to China• Китайская Народная Республика (КНР)
supported over 930,000 jobs in the United States• Соединённые Штаты Америки (США).
China• Китайская Народная Республика (КНР) has been a land of opportunity for U.S• Соединённые Штаты Америки (США). firms. More than 70,000 American
companies have established businesses in the country. Notably, American
companies comprised the largest foreign exhibitors contingent at the inaugural
and second China• Китайская Народная Республика (КНР) International Supply Chain Expo. Among Apple• Объект бренды » Бренды на a » Apple's 200 key
suppliers, 80 percent of them produce their products in China• Китайская Народная Республика (КНР).
On the other hand, Chinese firms' investment in the United States• Соединённые Штаты Америки (США) has boosted
local employment. Chinese member companies of the China• Китайская Народная Республика (КНР) General Chamber of
Commerce-USA• Соединённые Штаты Америки (США) have invested over 144 billion U.S• Соединённые Штаты Америки (США). dollars in the United States• Соединённые Штаты Америки (США),
directly creating more than 230,000 jobs.
Despite challenges and strains in their bilateral relationship, trade value
between the two countries reached 4.44 trillion yuan (about 617.73 billion
U.S• Соединённые Штаты Америки (США). dollars) in the first 11 months of 2024, up 4.2 percent year on year.
"It is important for us• Экономика » Финансы » Платежные средства » Доллар США to remind U.S• Соединённые Штаты Америки (США). lawmakers and those in influential
positions that every state and congressional district in the United States• Соединённые Штаты Америки (США)
maintains its own economic and trade relationship with China• Китайская Народная Республика (КНР), and changes in
U.S• Соединённые Штаты Америки (США).-China• Китайская Народная Республика (КНР) trade policy should be considered very carefully," former USCBC
President Craig Allen said.
CONFRONTATION MAKES NO WINNER
Given the strong interconnectedness between the two economies, raising tariffs
on Chinese products and other trade and investment restrictive measures
against China• Китайская Народная Республика (КНР) will surely backfire, fueling inflation• Экономика » Финансы » Инфляция
• Экономика » Макроэкономика » Макроэкономические индикаторы » Инфляция and hindering
innovation• Экономика » Бизнес » Инновация, among others, history and research have shown.
A joint U.S• Соединённые Штаты Америки (США). study released in 2023 assessed the impact of the Section 301
tariffs imposed on U.S• Соединённые Штаты Америки (США). imports of apparel, footwear, travel goods and
furniture from China• Китайская Народная Республика (КНР) since 2018. For footwear alone, the tariffs imposed an
annual direct cost on importers of at least 250 million U.S• Соединённые Штаты Америки (США). dollars, which
escalated each year to exceed 450 million dollars in 2022.
The study found that the higher costs and higher prices brought by such
tariffs eventually fell on American companies and families.
Meanwhile, the Section 301 tariffs increased the price of semiconductors in
the United States• Соединённые Штаты Америки (США) by 4.1 percent from 2018 to 2021, according to the U.S• Соединённые Штаты Америки (США).
International Trade Commission.
Defaults on U.S• Соединённые Штаты Америки (США). credit card loans have hit the highest level since the wake
of the 2008 financial crisis• Финансовый кризис, indicating the financial distress facing
lower-income consumers after years of elevated inflation• Экономика » Финансы » Инфляция
• Экономика » Макроэкономика » Макроэкономические индикаторы » Инфляция, according to a
Financial Times• Средства массовой информации » СМИ-газеты » Газеты по странам » Газеты Великобритании » Financial Times
• Средства массовой информации » Средства массовой информации Великобритании » Газеты Великобритании » Financial Times report. The situation could worsen if more tariffs are
introduced, which will further fuel inflation• Экономика » Финансы » Инфляция
• Экономика » Макроэкономика » Макроэкономические индикаторы » Инфляция.
Moves to isolate Chinese firms also come with potential costs, according to
U.S• Соединённые Штаты Америки (США). think tank the Peterson Institute for International Economics (PIIE),
citing hobbling innovation• Экономика » Бизнес » Инновация for the United States• Соединённые Штаты Америки (США) and allied business• Экономика » Бизнес and
encouraging circumvention of sanctions• Политика » Геополитика » Международные отношения » Международное право » Международно-правовые санкции » Санкции против России.
"American firms earn revenue through sales to Chinese customers. Export
controls reduce these earnings if U.S• Соединённые Штаты Америки (США). firms are not able to find alternative
buyers. Such costs should not be viewed as only a private loss for companies,
however: Sales revenue is the most important source of funding for research
and development by U.S• Соединённые Штаты Америки (США). technology companies," the PIIE noted.
"Reducing certain tariffs, enhancing technological and investment cooperation,
and strengthening economic ties could pave the way for a more stable trade
relationship and foster long-term economic growth for both countries," said
Wang Huiyao, president of the Center for China• Китайская Народная Республика (КНР) and Globalization.
FOR THE WORLD'S SAKE
Graham Allison, a professor at Harvard University known for his concept of the
"Thucydides Trap," said on his visit to China• Китайская Народная Республика (КНР) in December that the United
States• Соединённые Штаты Америки (США) and China• Китайская Народная Республика (КНР) should avoid falling into the trap and finding the right way
for them to get along with each other is important for both countries and the
world at large.
Together, China• Китайская Народная Республика (КНР) and the United States• Соединённые Штаты Америки (США) account for over one-third of the
world's total economic output, with their combined trade volume representing
about one-fifth of the global total. "Any decoupling between us• Экономика » Финансы » Платежные средства » Доллар США would only
make the world poorer," said Xie Feng.
When meeting Chinese leaders in early December, heads of major global economic
organizations expressed widespread concern over the potential damage to global
economic development caused by decoupling practices. They called for the
facilitation of trade and investment liberalization.
In December, the Organization for Economic Co-operation and Development warned
that higher uncertainty and continued increases in trade-restrictive measures
could "raise costs and prices, deter investment, weaken innovation• Экономика » Бизнес » Инновация and
ultimately lower growth."
"The 2025 trade outlook is clouded by potential U.S• Соединённые Штаты Америки (США). policy shifts, including
broader tariffs that could disrupt global value chains and impact key trading
partners," the United Nations Conference on Trade and Development (UNCTAD)
said in its latest Global Trade Update.
Such measures risk triggering retaliation and ripple effects, affecting
industries and economies along entire supply chains, UNCTAD said. "Even the
mere threat of tariffs creates unpredictability, weakening trade, investment
and economic growth."
(Web editor: Zhang Kaiwei, Zhong Wenxing)
Photos
Rime frost blankets Habahe Birches Park in NW China• Китайская Народная Республика (КНР)'s Xinjiang
41st Harbin Int'l Ice and Snow Festival kicks off
Ice and snow sculptures wow visitors at opening ceremony of tourist season in
Liaoyuan, NE China• Китайская Народная Республика (КНР)'s Jilin
New Year's Day celebrated across China• Китайская Народная Республика (КНР)
