Envoy: trade deficit not necessarily a disadvantage

"China-US economic cooperation is a two-way street, not a zero-sum game. Running a trade deficit does not necessarily mean one is at a disadvantage."

Those were the words of Xie Feng, China's ambassador to the United States, at the?2025 Annual Gala hosted by the US-China Business Council?on Thursday in Washington DC, as he delivered a speech titled "Recalibrate the direction of China-US relations and forge ahead braving the waves".

In his speech, Xie shared three thoughts?with American entrepreneurs, former?officials and?media professionals on the theme of the gala, "Seeking a New Path for US-China Relations". First, mutual benefit has all along been the defining feature of China-US economic cooperation, which has grown from small to large and keeps developing. Both countries and the world have benefited.?Second, as global economic growth remains sluggish, cooperation is the only way out, while protectionism is no better than drinking poison to quench thirst.?Third, China's development is an opportunity for the world. Believing in China is believing in a better tomorrow, and investing in China is investing in the future.

On China-US trade, Xie elaborated that people cannot focus solely on the goods trade, but ignore the huge surplus in services trade, the sales revenue?of American companies?in the Chinese market, the tremendous environmental?and?resource costs?China has paid, or the fact that the Chinese people have chosen to spend much of the?trade gains?buying?a large amount of US treasury bonds. "So, when we look at the whole picture, we will see that the benefits our two countries have taken from bilateral trade are generally balanced. Any selective reading?of?the statistics would be?misleading."

"We are willing to buy more from the US. Unfortunately, the US side has imposed strict restrictions on?the export of its most competitive products such as semiconductors, and shut the door on Chinese enterprises, buyers, tourists and students who want to invest and spend in the US," Xie said. "If one is reluctant to sell others what they want, how can it ever get its deficit reduced?by exporting only products like soybeans and beef?"

Xie also pointed out that the China-US relationship is now at a critical juncture. The two sides are faced with two opposite options: win-win cooperation, or a lose-lose scenario. He stressed the importance of following the strategic guidance of the two heads of state and faithfully implementing the important consensus reached between Chinese President Xi Jinping and US President Donald Trump during their phone call. Noting that the Chinese side is sincere about this and at the same time has its principles, Ambassador Xie said China's sovereignty, security and development interests are the red line that should not be crossed, and mutual respect, peaceful coexistence and win-win cooperation are the principles that must be upheld.

Xie encouraged the USCBC and the US business community to continue to speak up for exchanges and dialogue, and take actions to facilitate mutually beneficial cooperation, so as to jointly sail the giant ship of China-US relations across stormy seas and onto a steady course.

US Ambassador to China David Purdue delivered a video message to the event, and USCBC President Sean Stein held a fireside chat with former US ambassador to China Jon Huntsman Jr.

USCBC Chair Rajesh Subramaniam and more than 500 American entrepreneurs, former officials and representatives of other sectors attended the gala.