China-US trade ties crucial for global growth

China's economic growth is pivotal to and vital for global prosperity, and it is essential and significant for the United States and China to maintain a stable trade relationship, according to a senior business leader.

Rajesh Subramaniam, CEO of US-based logistics company FedEx Corp and chair of the Board of the US-China Business Council, said that in a world defined by rapid changes and heightened geopolitical uncertainty, the council welcomes continued dialogue and the positive outcomes achieved by the US and Chinese economic and trade consultation teams.

His remarks follow a recent visit by a USCBC board delegation to Beijing, during which representatives of major US companies, including Apple, Boeing, Goldman Sachs and Otis, sought to strengthen bilateral commercial ties and advocate for a stable and predictable environment for US businesses operating in China.

The visit underscored a broader sentiment among global and US companies that continue to view China as a critical market because of its vast consumer base, consistent focus on high-quality growth, well-developed industrial system and supply chain networks.

Amid declining global cross-border investment, a growing number of foreign businesses regard China as an ideal, secure and promising investment destination. The number of foreign-invested companies with foreign trade businesses in China reached 75,000 in the first half of 2025, the highest level for the same period since 2021, data from the General Administration of Customs shows.

Emphasizing China's importance to the global competitiveness of many US companies, Subramaniam said that FedEx, which operates over 300 international weekly flights to and from China, will continue to invest in smarter supply chains through digital innovation, data-driven platforms and artificial intelligence within the country.

A report released in mid-July by the USCBC showed that about 82 percent of its surveyed member companies reported profitable operations in China in 2024, an improvement compared with the previous two years. Nearly all respondents also said they cannot remain globally competitive without their operations in China.

According to the Ministry of Commerce, China and the US have agreed to continue pushing for an extension of the pause on 24 percent reciprocal tariffs of the US side, as well as countermeasures of the Chinese side, following their latest round of trade talks last week in Stockholm, Sweden.

He Yadong, a spokesman for the ministry, said last week that China looks forward to working with the US to fully leverage the role of the bilateral economic and trade consultation mechanism and strive for more win-win outcomes.

Subramaniam said that China has sent a strong signal to the world of its commitment to further advance reform and opening-up. "This has helped boost market confidence," he added.

Chen Jianwei, a researcher at the University of International Business and Economics' Academy of China Open Economy Studies in Beijing, said that China's ongoing efforts in industrial upgrading, green transformation and further opening-up are creating long-term opportunities for foreign businesses in areas such as high-end manufacturing, smart mobility and service-related sectors.

"These efforts are contributing to global economic growth and supply chain stability, reinforcing China's role as a key engine of the world economy," Chen said.

Gao Lingyun, a researcher at the Chinese Academy of Social Sciences' Institute of World Economics and Politics in Beijing, said that continued dialogue between China and the US could help reduce uncertainty in global supply chains, enhance cooperation in both goods trade and trade in services, and foster innovation in emerging sectors such as green technology and digital infrastructure.

"Businesses on both sides are seeking predictability and trust — key factors for the long-term planning and stability of global markets," Gao added.

Nathan Stoner, chairman for China at Cummins Inc, a US-based engine manufacturer, said the company will launch next-generation products, including electric motors, electronic controls, e-driving systems and integrated controllers, as well as power electronics, in China next year.

As more Chinese carmakers venture into Southeast Asia, Europe and beyond, Cummins is looking to play a key role in helping them grow their global footprint, Stoner said.

zhongnan@chinadaily.com.cn