China on Thursday reiterated its desire to restore trade relations with the United States to a state of "healthy and stable development", even as both countries navigate a complex matrix of economic and geopolitical tensions.

Speaking at a press conference in Beijing, Commerce Minister Wang Wentao said that China and the United States had withstood many storms over the years, yet remained "important economic and trade partners to each other." His comments come amid a cautious thaw in bilateral communication and renewed focus on economic diplomacy under the Biden administration.

“We are willing to work together with the U.S. to restore our trade and economic cooperation to a path of healthy development,” Wang said, adding that mutual benefit and win-win cooperation are in the best interests of both nations and the global economy.

Backdrop: Trade War, Tech Sanctions, and Diplomatic Tensions

The China-U.S. economic relationship has been under pressure since 2018, when the Trump administration launched a tariff war targeting hundreds of billions of dollars in Chinese exports, citing unfair trade practices and intellectual property theft.

The Biden administration has largely maintained those tariffs, while adding restrictions on semiconductor exports, AI tools, and critical supply chains over national security concerns. These actions have led to significant economic decoupling, particularly in the tech sector, with the U.S. blocking advanced chips and AI technology from being exported to China.

Wang acknowledged the "many challenges and uncertainties," but said stabilising trade relations with the U.S. was crucial for China’s long-term economic strategy.

Why This Matters Now: Global Uncertainty and Fragile Supply Chains

The timing of China’s renewed outreach is notable. Global trade has been weakened by inflation, wars, and supply chain shocks, and both Beijing and Washington face economic headwinds at home.

China’s post-COVID recovery has not reached pre-pandemic momentum, with slowing exports, youth unemployment, and real estate volatility hurting domestic confidence. Meanwhile, the U.S. is managing interest rate hikes, inflation fears, and a looming presidential election that could impact trade policy again.

“In today’s interconnected world, no economy can thrive in isolation,” Wang said. “The trade relationship between China and the United States is not just bilateral; it affects global economic stability.”

Bilateral Trade Still Strong Despite Political Headwinds

Despite the confrontational rhetoric of the past few years, the China-U.S. trade relationship remains massive. In 2023, bilateral trade in goods exceeded $580 billion, though down from the peak of $690 billion in 2022.

China continues to be a major buyer of U.S. agricultural products, aircraft, and semiconductors, while the U.S. remains a top destination for Chinese electronics, machinery, and consumer goods.

American businesses operating in China — particularly in the automotive, pharma, and luxury sectors — have largely remained in place, albeit with some hesitancy due to regulatory unpredictability and political risks.

Call for Mutual Respect and Market Openness

Wang Wentao also used the occasion to stress China’s commitment to opening up its domestic markets, a frequent point of contention in U.S. policymaking circles. He invited foreign investment, while calling for “non-discriminatory treatment” of Chinese companies abroad.

“Chinese firms deserve fair and transparent treatment in international markets, just as we welcome foreign businesses in China,” he said.

This message appeared aimed at countering U.S. and EU efforts to curb Chinese investment in strategic sectors, such as 5G, EV batteries, rare earth minerals, and biotech.

Trade and Tech: The New Battleground

One of the most contentious areas in China-U.S. relations today is technology and innovation. With the U.S. imposing sweeping bans on high-end chips, cloud services, and AI exports, China has responded with counter-measures on gallium, germanium, and other critical minerals used in tech manufacturing.

Wang reiterated China’s opposition to what it calls "unilateral and protectionist actions" by Washington, warning that decoupling in tech could fragment global innovation and hurt consumers worldwide.

Still, Chinese officials remain open to sectoral cooperation, especially in green technology, climate change, and pandemic preparedness.

Recent Diplomatic Contacts Signal Easing of Tensions

Wang’s comments follow recent high-level visits by U.S. Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo to Beijing, which focused on restarting communication channels, avoiding escalation, and managing strategic competition responsibly.

Although no breakthrough was achieved, both sides agreed to establish working groups on trade, investment, and macroeconomic coordination, signalling a desire to avoid further deterioration.

Looking Ahead: Can Business Outpace Politics?

The Chinese Commerce Minister’s latest message is part of a broader attempt to frame China as a responsible global trade actor, in contrast to the “weaponisation of trade” by others — a thinly veiled reference to the U.S.

“The political climate may change, but business logic still drives the China-U.S. economic relationship,” said Zhao Xijun, professor of economics at Renmin University in Beijing. “The key question is whether cooler heads can prevail.”

Analysts say that while deep trust remains elusive, both nations may find common ground in avoiding a full-blown economic Cold War, especially amid rising inflation, energy shocks, and an increasingly multipolar world.

Conclusion: A Delicate Balance of Competition and Cooperation

China’s call to return U.S. trade ties to a “healthy state” is not just symbolic — it reflects growing concern about global fragmentation and economic instability. While competition will persist, both countries may have little choice but to work within a framework of selective cooperation, especially in areas where economic interdependence remains high.

If realised, stabilising this vital relationship could have ripple effects far beyond Beijing and Washington — from supply chains in India to inflation in Africa and global growth forecasts for 2026.

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