The first meeting of the China-U.S. economic and trade consultation mechanism concluded in London this week, signaling renewed efforts to stabilize bilateral relations and address global supply chain concerns. The dialogue, aimed at implementing prior agreements between the two nations, highlighted China's commitment to resolving differences through equal consultation while safeguarding its development rights.
China's foreign trade data for 2024 underscores its economic resilience, with total goods trade reaching 17.94 trillion yuan ($2.5 trillion) in the first five months—a 2.5% year-on-year increase. Export growth accelerated to 7.2%, reflecting the success of trade diversification strategies amid external pressures.
Key drivers of China's economic confidence include:
A consumer market nearing 50 trillion yuan in retail sales
Complete industrial capabilities across all 41 UN-classified categories
Leadership in green tech sectors like photovoltaics and lithium batteries
Expanding semiconductor production and 5G innovation
While U.S. exports to China remain below potential due to policy constraints, China continues to expand market access for global businesses. Foreign investment in high-tech industries has risen steadily, with the cross-border RMB payment system now operational in over 180 countries.
Analysts note that China's current account surplus has decreased to 2.2% of GDP in 2024, down from 9.9% in 2007, indicating structural trade improvements. The U.S. trade deficit with China has similarly halved as a percentage of its total goods deficit since 2018.
