On February 21, Vice Premier He Lifeng, China-US Economic and Trade Leader and Vice Premier of the State Council, held a video call with U.S. Treasury Secretary Basent. It was the first phone call between senior U.S. and Chinese economic officials since the Trump administration took office.

Under the current grim situation of China-US relations and China-US economic and trade relations, what signals have been released by this communication?

China-US Economic and Trade Relations: The Essence of Mutual Benefit and Win-Win Prospects and Broad Prospects for Cooperation

In a recent video call, the United States and China recognized the importance of the U.S.-China economic and trade relationship and emphasized that both countries are great countries that are committed to improving people's living standards while pursuing their dreams. The two sides agreed that China and the United States have extensive common interests and broad space for cooperation, and can become partners and friends. The essence of China-US economic and trade relations is mutual benefit and win-win results, and confrontation and conflict should not be the path we choose.

Proceed from the common good

China has always viewed and handled China-US economic and trade relations from the perspective of the common interests of the two countries and the two peoples, and this position has never changed. In fact, the trade volume between China and the United States will grow by 3.7% against the trend to 688.28 billion US dollars in 2024, which shows that the large-scale economic and trade cooperation between China and the United States is still strong despite the ups and downs, showing that both businesses and people can benefit from it and have a strong motivation to cooperate.

The truth behind the data

Notably, while the overall U.S. trade deficit reached a new high last year, up about 50% from before the tariff war began in 2017, these tariffs did not address U.S. concerns. This shows that differences and contradictions should ultimately be resolved through communication and consultation, rather than relying solely on trade barriers or sanctions.

Practical benefits of economic and trade cooperation

Over the years, China-US economic and trade relations have withstood tests and continued to demonstrate strong resilience and vitality. The data shows that even in a challenging environment, economic and trade exchanges between China and the United States have continued to grow. This phenomenon is not only a testament to the strength of market forces, but also a reflection of the confidence of the business community in deepening bilateral cooperation.

China is of grave concern and firm position

During the video call, China and the United States reached a consensus on the importance of China-US economic and trade relations. It is worth noting that in this communication, the Chinese side expressed its solemn concern over the recent restrictive measures imposed by the United States on China, such as tariffs. In the face of the tariffs unilaterally provoked by the US, China not only did what it said and resolutely countered tariffs, but also further elaborated its principled position during the phone call. If the US takes other actions in the future, China will take resolute measures to safeguard its own interests.

The underlying reasons behind the tariffs

Cui Fan, a professor at the School of International Business and Economics of the University of International Business and Economics, pointed out in an analysis that the targets of the US government's current round of tariffs have increased significantly, and the intensity has also increased significantly. The biggest reason behind the role of tariffs as fiscal revenue is the fiscal pressure in the United States. Partially offsetting the fiscal gap caused by domestic tax cuts by raising taxes externally has become a long-term strategy of the Trump administration to solve domestic economic problems.

At the same time, tariffs are also regarded as a "card" for the US to start foreign negotiations and influence the negotiation situation. Mr. Trump has publicly expressed his desire to reach a "grand deal" with China that covers a wide range of issues, including large-scale purchases, investment commitments and nuclear safety. Therefore, if formal negotiations between China and the United States start at a later stage, it is still a high probability that the US side will intermittently wield the tariff stick.

China's attitude and position

The Chinese side is well aware of these situations and has shown a nonchalant attitude. As the Chinese side emphasized, "the door is open for talks; Fight, accompany to the end. ” This sentence not only shows China's openness to negotiations, but also shows its determination to defend its own interests.

Agree to continue communication

According to a press release issued by the Chinese side, China and the United States reached a consensus in a recent video call and agreed to continue communication on issues of mutual concern. U.S. Treasury Secretary Basant and Chinese Vice Premier He Lifeng both expressed their willingness to continue the dialogue, indicating that high-level interaction between the two countries in the economic field will continue.

The importance of constant communication

In addition, the heads of some Chinese economic and trade departments also sent congratulatory letters to the newly appointed senior US economic and trade officials, reflecting China's constructive attitude of maintaining and strengthening bilateral economic and trade communication channels, and receiving a positive response from the US side. This interaction not only helps to ease the current tensions, but also lays the groundwork for future cooperation.

In fact, there is a wide range of topics that can be discussed between China and the United States, not only on their respective concerns, but also on issues such as coordinating macroeconomic policies and jointly addressing global challenges. Through multilateral mechanisms such as the G20 and APEC financial channels, China and the United States have maintained close communication. These efforts are of great significance for promoting the stability and development of the two countries and the global economy at large.