China US

The first meeting of the China-US economic and trade consultation mechanism was held in London, Britain this week, which lasted two days. According to media reports, the second day of the talks stretched into the night on Tuesday (local time). We can imagine that the talks have touched upon many specific issues and the talks are in-depth. 

According to the report by the Xinhua News Agency, "new progress" was made in addressing each other's economic and trade concerns. Although the report didn't elaborate on what "new progress" specifically means, based on public information so far, we can see that both China and the US have achieved progress from the meeting.

About one month ago, China and the US held a high-level meeting on economic and trade affairs in Geneva, Switzerland, from May 10-11, and released a joint statement, with both sides agreeing to establish a mechanism to continue discussions about economic and trade relations. The meeting is the first under such mechanism.

After the meeting, Li Chenggang, China International Trade Representative with the Ministry of Commerce and vice minister of commerce, said China and the US have over the past two days conducted "professional, rational, in-depth and candid exchanges." For me, such a meeting has offered a platform for China and the US to address sensitive economic and trade differences through equal dialogue, and has also strengthened the confidence of the international community that, even amid the complex pressures of emerging frictions, the two sides can still maintain effective communication and dialogue.

China-US economic and trade relations were of great significance not only to both countries but also to global economic stability and development. The combined economic output of the two nations exceeds one-third of the global total, their total population accounts for nearly one-fourth of the world's total, and their bilateral trade volume represents approximately one-fifth of the global total.

However, China-US economic and trade cooperation has experienced a period of frequent frictions, turbulence, and conflicts amid growing uncertainty to bilateral economic and trade ties due to frictions provoked by the US. In the economic community, this has sparked anxiety and triggered frequent volatility in the stock, foreign exchange, and bond markets over the past few months.

According to market reactions following the China-US meeting in London, many believe that such pragmatic meetings focused on addressing specific economic and trade differences will continue in the future. This will help enhance the predictability of the critical China-US economic and trade relationship, and it holds positive significance for stabilizing market sentiment and helping businesses form reasonable expectations regarding China-US economic and trade ties.

The Chinese side is sincere in pushing ahead China-US economic and trade relationship. It is hoped that progress made at the London meeting will be conducive to strengthening trust between China and the US, and to further promoting the steady and healthy development of economic and trade ties between the two countries, Li said, adding that the meeting also adds positive energy to global economic growth.

The essence of China-US economic and trade relations is mutual benefit and win-win cooperation. However, since the US unilaterally initiated trade disputes, trade frictions between China and the US continue to intensify. Currently, there are still many disagreements between the two countries, which encompass multiple areas and levels, including issues such as tariff reduction and elimination, trade, critical minerals, and tech exports. Accordingly, the two countries need a "package" of solutions to manage differences.

During their meeting in London, the two sides thoroughly exchanged views on economic and trade issues of mutual concern, and have agreed in principle the framework for implementing consensus between the two heads of state during their phone talks on June 5, as well as those reached at Geneva talks, according to Xinhua.

According to Australian Broadcasting Corporation, US Commerce Secretary Howard Lutnick told reporters the result from China-US meeting in London puts "meat on the bones" of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs.

Implementation is crucial. The world expects China-US trade talks and cooperation to bring greater certainty and stability to the world's economy. Given that the current complex landscape in China-US economic and trade relations stems from the US unilaterally provoking frictions, the US shoulders unshirkable responsibilities. It is hoped that the US will show sincerity, and take concrete actions to implement the consensus reached and commitments it has made in order to jointly boost steady and sustainable development of China-US economic and trade relations and inject greater certainty and stability into the global economy.

There remain many economic and trade differences between China and the US, and the situation may face some twists and turns in the future. However, after recent rounds of interaction, I believe the US side felt that China approached economic and trade consultations with both sincerity and adherence to principles. Faced with US tariffs, the Chinese economy has the resilience.

The latest economic data released by multiple Chinese departments recently shows that the Chinese economy is growing steadily, continuing its steady upward trend. Despite external pressures, China's major indicators such as industrial output and retail sales continued to rise, underscoring the resilience and confidence of the Chinese economy.

The author is a research fellow at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences. bizopinion@globaltimes.com.cn