United News of Bangladesh

The United States and China are seeking to repair economic damage caused by a prolonged tariff war that sharply reduced trade between the world’s two largest economies. US President Donald Trump and Chinese President Xi Jinping are meeting in Beijing as both sides aim to stabilise strained relations after a turbulent 2025. A decade-long trade conflict has significantly cut US-China trade from the boom years of the 2000s and 2010s, forcing companies to restructure supply chains. Many US firms have shifted production to countries such as Vietnam and India, while Chinese exporters have expanded into Europe and Southeast Asia. Trump pauses to observe grand welcome in Beijing Despite tensions, both economies remain highly interdependent. “The idea of China being totally independent of us and us being totally independent of China is a fiction,” said former US Commerce Secretary Wilbur Ross. The summit is expected to focus on stabilisation, with limited policy announcements. A trade truce reached in October is likely to be extended, while China may increase purchases of US soybeans, beef and Boeing aircraft. Washington has also floated plans for a Board of Trade. Tariffs, which averaged 3.1% in 2018, remain near 48% today. US-China trade has fallen from 13% of US global trade in 2016 to 6.4% last year, with Mexico and Canada now the top partners. The US deficit with China dropped from $377 billion in 2018 to $168 billion last year, while China posted a record $1.2 trillion global surplus. Both sides have also shifted supply chains and imposed restrictions on chips, rare earths and critical materials as they seek a more stable but competitive trade relationship.