US President Donald Trump wrapped up his China visit on Friday. Discussions at the summit with Chinese President Xi Jinping have centered on a host of pressing issues including security and trade. At a time when the world economy faces heightened geopolitical tensions, accompanied by energy supply shocks, the meeting between leaders of the world's two largest economies is crucial for stabilizing global markets.

China-US cooperation, specifically in trade and investment, is a cornerstone of the world economy with profound impacts on technological advancement, market stability and supply chains. In recent years, however, escalated trade tensions and strategic actions to limit economic reliance on each other have led to a decline in bilateral trade.

According to the McKinsey Global Institute's report (March 2026), plummeting China-US trade lowered global trade growth by 10% in 2025, with reduced US imports from China accounting for about 85% of the decline. Compared to the 2000s and 2010s when booming China-US trade driven by China's 2001 WTO accession reduced global consumer prices and created global value chains, the decline in China-US trade in recent years has disrupted the global economic landscape, putting at risk years of hard-earned gains. At the summit, it is important to note that how the two parties interpret and address China-US trade decline is critical to global economic stability and recovery.

During a meeting with Trump at the Great Hall of the People in Beijing, Xi emphasized that the two sides should adopt a collaborative approach, citing that a stable China-US bilateral relationship is good for the world. According to Xi, "China and the United States both stand to gain from cooperation and lose from confrontation. We should be partners, not rivals. We should help each other succeed and prosper together."

Xi also added that over the next three years and beyond, the two leaders have agreed to work towards a constructive China-US relationship of strategic stability, with cooperation as the mainstay. During this period, Xi reiterated that China will open its door wider, adding that US business enterprises are deeply involved in its reform and opening up.

Given the deep interdependence between China and the US, along supply chains and financial flows, and with the two accounting for more than one-third of global economic output and around one-fifth of the global trade in goods, their policy actions have significant impact globally.

For example, before Trump started to increase taxes on Chinese imports in 2018, the average US tariff on China was 3.1%. At present, the figure is almost 48%, leading to higher prices for consumer goods and components in the US, and subsequently, higher global costs. As the two sides aim to eliminate barriers that have recently shifted their relationship from mutually beneficial cooperation to costly conflict, progress towards a more stable China-US relationship could help mitigate risks of global trade disruptions and ensure smoother international trade flows.

Shipping containers from Hede Shipping are seen stacked at the Port of Los Angeles, California, October 13, 2025. /CFP

China has contributed approximately 30% to global economic growth annually in recent years. Home to the world's second-largest import market for 17 consecutive years, and with steady outbound investment, China, which also maintains its position as a major trading partner with more than 150 countries and regions, has shared its development dividend with the world.

In the area of green tech, for example, China remains the dominant player in clean energy technology manufacturing, accounting for 60% to 85% of production capacity across multiple supply chain steps, according to data from the International Energy Agency.

In 2025, China's gross export for clean energy technologies totaled $165 billion, solidifying its position as the world's largest exporter of green tech. For countries around the world, specifically developing nations, affordable Chinese green technology, including solar panels, electric vehicles and wind turbines, provide new growth opportunities to leapfrog traditional industrialization stages, securing economic growth, while minimizing environmental impact.

As China and the US seek to recalibrate their relationship, it is important for the two parties to acknowledge that cooperation, not isolation drives bilateral ties.