The US and China are trying to ease the economic strain caused by a prolonged tariff war that has sharply reduced trade between the world’s two largest economies, reports AP.
US President Donald Trump and his Chinese counterpart Xi Jinping are meeting in Beijing as both countries seek to stabilise relations following a turbulent 2025.
The years-long trade dispute has significantly reduced US-China trade compared to the boom period of the 2000s and 2010s, forcing many companies to reorganise their supply chains. Several US firms have moved production to countries like Vietnam and India, while Chinese exporters have expanded their presence in Europe and Southeast Asia.
Despite growing tensions, the two economies remain deeply interconnected. Former US Commerce Secretary Wilbur Ross said the idea of complete economic separation between the two countries is unrealistic.
The summit is expected to focus mainly on stabilising ties, with only limited policy announcements likely. A trade truce reached in October may be extended, while China is expected to increase imports of US soybeans, beef and Boeing aircraft. Washington has also proposed the creation of a Board of Trade.
Tariff rates, which averaged 3.1 percent in 2018, now remain close to 48 percent. US-China trade has also declined from 13 percent of total US global trade in 2016 to 6.4 percent last year, with Mexico and Canada becoming America’s top trading partners.
The US trade deficit with China fell from $377 billion in 2018 to $168 billion last year, while China recorded a global trade surplus of $1.2 trillion.
Both countries have also tightened restrictions on semiconductors, rare earth minerals and other critical materials as they continue efforts to build a more stable yet competitive trade relationship.
Bd-Pratidin English/ AM
