The largest developing country in the world, the United States is the largest developed country in the world. Sino-US economic and trade relations are of great significance to both countries as well as to the stability and development of the global economy.
Since the establishment of diplomatic relations between China and the United States, bilateral economic and trade relations have been developing steadily, and the confluence of interests has been increasing. A close cooperative relationship has been formed, which not only benefits both countries, but also benefits the whole world. Especially since the beginning of the new century, in the process of rapid economic globalization, China and the United States have followed bilateral agreements and multilateral rules such as the World Trade Organization to expand and deepen economic and trade cooperation. Based on comparative advantages and market choice, a mutually beneficial and win-win relationship with highly complementary structure and deep integration of interests has been formed. By complementing each other's strengths and exchanging needs, the two sides have effectively promoted their respective economic development and industrial structure optimization and upgrading. At the same time, they have enhanced the efficiency and efficiency of the global value chain, reduced production costs, enriched the types of commodities, and greatly promoted the interests of enterprises and consumers in both countries.
China and the United States have different stages of economic development and economic systems. It is normal to have economic and trade frictions. The key is how to enhance mutual trust, promote cooperation and control differences. For a long time, the two governments, acting on the principle of equality, rationality and opposition, have established such communication and coordination mechanisms as the Sino-US Joint Commission on Commerce and Trade, the Strategic Economic Dialogue, the Strategic and Economic Dialogue and the Comprehensive Economic Dialogue. Both sides have made unremitting efforts to overcome various obstacles in Sino-US economic and trade relations in the past 40 years. Obstructing and constantly developing, it has become the ballast stone and propeller of Sino US relations.
Since the new U.S. government took office in 2017, under the slogan of "U.S. priority", it has abandoned the basic principles of international exchanges, such as mutual respect and equal consultation, practiced unilateralism, protectionism and economic hegemony, made a series of false accusations against many countries and regions, especially China, and made use of increasing tariffs and other means. Economic intimidation, trying to take the ultimate pressure method to impose their own interests in China. Faced with this situation, China, proceeding from safeguarding the common interests of the two countries and the overall situation of the world trade order, adheres to the basic principle of resolving disputes through dialogue and consultation, responds with utmost patience and sincerity to the concerns of the United States, properly handles differences with a view to seeking common ground while reserving differences, overcomes various difficulties, and conducts multiple rounds of dialogue and consultation with the United States. A pragmatic solution has made painstaking efforts to stabilize bilateral economic and trade relations. Nevertheless, the United States has been confronted with many difficulties, which has led to the continuous escalation of Sino-US economic and trade frictions in a short period of time, greatly damaging the Sino-US economic and trade relations that have been cultivated by the governments and people of the two countries for many years, and seriously threatening the multilateral trading system and the principle of free trade.
In order to clarify the facts of Sino-US economic and trade relations, clarify China's policy position on Sino-US economic and trade frictions, and promote a reasonable solution to the problem, the Chinese government has issued this white paper.
Since the establishment of diplomatic relations between China and the United States, bilateral economic and trade relations have been developing continuously. Trade and investment cooperation has achieved fruitful results and achieved complementary advantages and mutual benefit. China has benefited a lot from it, and the United States has also gained extensive and enormous economic benefits from it, sharing the opportunities and achievements brought by China's development. Facts have proved that good Sino-US economic and trade relations are of great significance to the development of both countries, with mutual benefit and mutual injury.
Bilateral trade in goods has increased rapidly. According to statistics from relevant departments of China, bilateral trade in goods between China and the United States in 2017 amounted to 583.7 billion US dollars, 233 times that of 1979, and more than 7 times that of 2001 when China joined the World Trade Organization. At present, the United States is China's largest export market for goods and the sixth largest source of imports. In 2017, China's exports to the United States and imports from the United States accounted for 19% and 8% of China's exports and imports, respectively. China is the fastest growing export market and the largest source of imports for the United States. In 2017, U.S. exports to China accounted for 8% of U.S. exports.
US exports to China are growing faster than their exports to the world. Since China's accession to the World Trade Organization, US exports to China have increased rapidly, and China has become an important export market of the United States. According to United Nations statistics, US exports to China in 2017 were $129.89 billion, up 57.7% from $19.18 billion in 2001, much higher than the 112% increase in US exports to the world over the same period (Figure 1).
China is an important export market for aircraft, agricultural products, automobiles and integrated circuits in the United States. China is the largest export market for American aircraft and soybeans, and the second largest export market for automobiles, integrated circuits and cotton. In 2017, 57% of U.S. exports of soybeans, 25% of Boeing aircraft, 20% of cars, 14% of integrated circuits, 17% of cotton are sold to China.
Sino US bilateral trade is complementary. The United States is in the middle and high-end of the global value chain. Most of its exports to China are capital goods and intermediate goods. China is in the middle and low-end. Most of its exports to the United States are consumer goods and final products. The two countries play their respective comparative advantages and the bilateral trade is complementary. In 2017, China exported 53.5% of the top three categories of commodities to the United States, including electrical and electrical equipment and its accessories, machinery and parts, furniture and bedding lamps and lanterns. The top three categories of goods imported by China from the United States are electrical and electrical equipment and its accessories, mechanical appliances and spare parts, vehicles and their accessories, accounting for 31.8% of the total. Electromechanical products play an important role in Sino US bilateral trade, and intra industry trade characteristics are more obvious (Table 1). Most of China's "high-tech products" exported to the United States are only labor-intensive processing links in China, including a large number of key components and intermediate import and international transfer value.
The service industry in the United States is highly developed.