China-Us Economic and Trade Relations: A Mutually Beneficial and Win-Win Partnership
Since the establishment of diplomatic relations between China and the United States, the two countries have achieved significant outcomes in bilateral trade and investment cooperation, fostering complementarity and mutual benefits. Both nations share extensive common interests and vast potential for further cooperation. Maintaining stable China-US economic and trade relations is essential for the fundamental interests of both countries and their peoples, while also contributing to global economic development. Evidence shows that cooperation between China and the US benefits both sides, while confrontation causes harm to both. Therefore, cooperation is vital for mutual benefits and win-win outcomes.
China and the US: Important Trade Partners
China and the US have experienced rapid growth in two-way trade in goods. According to United Nations (UN) statistics, in 2024, the volume of trade between China and the US reached US$688.28 billion—275 times the volume of trade in 1979, when diplomatic relations were first established, and more than eight times the volume of trade in 2001, when China joined the World Trade Organization (WTO). Currently, the US is China’s largest export destination and the second-largest source of imports. In 2024, China’s exports to the US and imports from the US accounted for 14.7% and 6.3%, respectively, of China’s total exports and imports for the year. China is also the US’s third-largest export destination and the second-largest source of imports. US exports to China and imports from China accounted for 7.0% and 13.8%, respectively, of the US’s total exports and imports for the year.
US exports to China have grown much faster than US exports to other countries. Since China joined the WTO, US exports to China have surged, making China an essential export market for the US. According to UN data, in 2024, US goods exports to China reached US$143.55 billion, a 648.4% increase from US$19.18 billion in 2001, far surpassing the overall export growth of 183.1% during the same period.
China is an important market for US agricultural products, integrated circuits, coal, liquefied petroleum gas, pharmaceuticals, and automobiles. In 2024, China was the largest export market for US soybeans and cotton, the second-largest market for integrated circuits and coal, and the third-largest for medical devices, liquefied petroleum gas, and automobiles. Data from the UN shows that, in 2024, China accounted for 51.7% of US soybean exports, 29.7% of cotton exports, 17.2% of integrated circuit exports, 10.7% of coal exports, 10.0% of liquefied petroleum gas exports, 9.4% of medical equipment exports, and 8.3% of passenger vehicle exports.
Bilateral trade between China and the US is highly complementary, as the two countries play to their respective comparative strengths. According to Chinese customs data, in 2024, China’s top five export categories to the US were electrical machinery, mechanical appliances, furniture, toys, and plastics, which accounted for 57.2% of its total exports to the US. The top five import categories from the US included mineral fuels, mechanical appliances, electrical machinery, optical instruments, and oilseeds such as soybeans, accounting for 52.8% of China’s total imports from the US. Machinery and electrical products play a significant role in China-US bilateral trade, demonstrating a clear characteristic of intra-industry trade.
Rapid Growth in China-US Services Trade
The US service industry is highly developed, encompassing a diverse range of sectors with strong international competitiveness. As China’s economy continues to develop and the standard of living improves, the demand for services in the country is rising, contributing to rapid growth in service trade between China and the US. According to the US Department of Commerce (USDOC), between 2001 and 2023, two-way trade in services between China and the US increased from US$8.95 billion to US$66.86 billion, a seven-fold increase. In 2023, the US was China’s second-largest services trading partner, while China was the US’s fifth-largest services export market.
The US stands as the largest source of China’s service trade deficit, with the deficit generally increasing over time. Between 2001 and 2023, US service exports to China grew from US$5.63 billion to US$46.71 billion, an 8.3-fold increase. The annual service trade surplus of the US with China expanded 11.5 times, reaching US$26.57 billion in 2023. In 2019, this surplus reached as high as US$39.7 billion. China continued to be the largest contributor to the US’s service trade surplus, representing about 9.5% of the total. China’s service trade deficit with the US is concentrated in three main areas: travel (including education), intellectual property royalties, and transportation.
SOURCE: Xinhua News