Stable trade ties benefit China, US

For Xiong Xujia, the wait started alongside the China-US trade talks in Geneva, which later shifted to London, Stockholm and Madrid, resulting in a monthslong spiral of uncertainty.

For Xiong, a foreign trade manager at Ningbo Tianxiang Electrical Appliances Co Ltd, a cookware manufacturer based in Ningbo, Zhejiang province, as well as her bosses and the company's clients in the United States, the May-September period turned into a season of uneasy waiting.

Each development in the economic and trade consultations hinted at possible shifts in prices, orders and an already-delicate business outlook.

With each round of talks, they were glued to the television screens, refreshing news alerts on their mobile phones, searching for even the faintest sign that tensions might ease.

That moment finally arrived when China released the outcomes of the Kuala Lumpur talks in late October, where both sides reached a consensus on tariff adjustments and export controls — a breakthrough that temporarily defused the risk of renewed escalation and offered Chinese manufacturers, US retailers and consumers a badly needed reprieve.

According to information from China's Ministry of Commerce, the US will cancel the 10 percent so-called "fentanyl tariffs", while also extending the suspension of the 24 percent reciprocal tariffs on Chinese goods for an additional year.

China will make corresponding adjustments to its countermeasures against the aforementioned US tariffs, and both sides agreed to extend certain tariff exclusion measures.

"With the latest round of China-US economic and trade talks producing a series of substantive outcomes and areas of consensus, we are more convinced that openness and cooperation are the path to shared success," said Xiong.

She said the company will continue to meet clients' expectations with high-standard products and reliable services, broaden its engagement with the US market, and pursue higher-quality growth through deeper, mutually beneficial cooperation.

Ningbo Tianxiang exported 172 million yuan ($24.17 million) worth of products, including toasters, sandwich makers and waffle makers, to the US in the first 10 months of this year, up 14.8 percent year-on-year, according to Ningbo Customs.

Despite a decline in bilateral trade, economic ties between the two countries remain substantial.

The US is still China's third-largest trading partner, with bilateral trade reaching 3.38 trillion yuan from January to October — down 15.9 percent year-on-year — and accounting for 9 percent of China's total foreign trade, according to the General Administration of Customs.

Market watchers said the outcome of the China-US economic and trade talks in Malaysia demonstrated both sides' commitment to stabilizing one of the world's most important economic relationships, setting the two countries' business ties on a firmer, more predictable footing.

This suggests not only a mutual willingness, but also a tangible ability, to steer the relationship back onto a more stable trajectory, said Liu Ying, a researcher at Renmin University of China's Chongyang Institute for Financial Studies.

Peng Bo, a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said that genuine, long-term normalization will require both sides to follow through on their commitments and keep communication channels open and functioning.

He added that it is both necessary and feasible for the two countries to build a workable framework for peaceful coexistence — one that can manage strategic rivalry and fundamental system-level differences without allowing them to escalate into confrontation.

During his meeting with David Perdue, US ambassador to China, on Nov 20, Chinese Commerce Minister Wang Wentao said China is willing to work with the US to implement important consensuses reached by the two heads of state, and said the two countries should foster a correct perception that China and the US can coexist and achieve win-win outcomes.

Wang stressed that it is essential to maintain the bilateral economic and trade consultation mechanisms and address sources of instability in economic and trade relations.

Industry voices have also echoed this view.

Liu Siqiang, vice-president of Winhere Auto-Part Manufacturing Co Ltd, a manufacturer of brake discs, brake drums and brake pads for automobiles in Yantai, Shandong province, said, "We believe that a healthy and stable China-US economic relationship serves as a common aspiration and crucial foundation for business development in the two countries."

The Chinese company exported 1.82 billion yuan worth of goods to the US market between January and October, up 17 percent year-on-year, statistics from Qingdao Customs showed.

Through concerted efforts on both sides, Liu said, China and the US can not only unlock greater opportunities for their businesses, but also inject fresh impetus into global economic stability and prosperity.

US business leaders also said that the emerging signs of stabilization — from policy adjustments to business sentiment — point to a cautiously improving outlook for China-US economic ties, with businesses on both sides standing to benefit from renewed momentum.

Jim Sutter, CEO of US Soybean Export Council, said that by combining open communication, flexible logistics and a problem-solving mindset, the organization strives to provide Chinese customers with stable and predictable deliveries of US soybeans, no matter what external challenges arise. He added that the council hopes to resume soybean exports to China as soon as possible.

"Beyond traditional food and feed uses, soy is now being applied in cutting-edge industrial sectors, including bio-based plastics, adhesives, lubricants, tires, shoes, coatings, fire retardants and even sustainable construction materials," said Sutter.

These innovative applications align closely with China's goals for green manufacturing and circular economy development, offering new dimensions for China-US soy collaboration rooted in technology and environmental stewardship, he added.

Sean Stein, president of the US-China Business Council, said that most US companies remain deeply committed to the Chinese market. "We've seen over the last nine or 10 months that there has not been a significant increase in US companies leaving China."

Instead, he noted that several US firms are "increasing their reliance on China as a production base for the Chinese market and other global markets, because they know what they get — a stable investment climate".

One such company is US industrial conglomerate 3M. It launched an expansion project for its tape production line at a manufacturing site in Shanghai in August, marking a significant boost to its local capacity and innovation capabilities.

Completed within 12 months, the project has increased production capacity by 50 percent, enabling the company to better meet the surging demand for low-pollution, lightweight and high-strength materials in China's fast-growing consumer electronics and automotive electrification industries, said Henry Ding, president for China at 3M.

Ingersoll Rand Inc, another US-based industrial products and solutions provider, noted that over 95 percent of its products sold in China are now locally manufactured, and that the company's research and innovation center in Shanghai is driving innovation tailor-made for the Chinese market.

"Our growth plan during the 15th Five-Year Plan (2026-30) period is not merely to expand our presence, but to evolve into an indispensable partner in China's high-quality development journey," said Arnold Li, the group's senior vice-president.

"We will continue to expand our local footprint by investing where our customers are growing, particularly in new industrial clusters," Li said. "Our research and development capabilities will be further enhanced with a focus on deepening these digital and green technologies, ensuring our innovations remain at the forefront of China's evolving industrial landscape."

Beyond the manufacturing sector, FedEx Corp, the US-based express transportation service provider, introduced nonstop cargo flights connecting its Asia-Pacific hub at Guangzhou Baiyun International Airport in Guangzhou, Guangdong province, with Penang International Airport in Malaysia in mid-November.

Operating five times a week, the new service is designed to enhance its intra-Asia network to meet growing trade demand between China and Southeast Asia, increasing connectivity, capacity and agility for Chinese businesses.

"The growing trade dynamics between China and the Association of Southeast Asian Nations is driving greater demand for efficient logistics services," said Poh-Yian Koh, president of FedEx China.

To address this trend, FedEx will continue to enhance its intra-Asia network and service capabilities, strengthening connectivity between Chinese businesses and Southeast Asian markets, she said.

zhongnan@chinadaily.com.cn