China-U.S. economic and trade exchanges are roughly balanced in terms of benefits. To objectively understand and evaluate whether China-U.S. bilateral trade is balanced, a comprehensive and in-depth examination is required; one cannot only look at the goods trade imbalance. In the current era of deep economic globalization and widespread international production, the connotation of bilateral economic and trade relations has already gone beyond goods trade. Service trade and the local sales revenue of domestic enterprises’ branches in the other country (i.e., local sales under two-way investment) should also be included. Taking into account goods trade, service trade, and local sales of domestic enterprises’ branches in the other country, the economic and trade exchanges between China and the U.S. are roughly balanced in terms of benefits.
According to data from the U.S. Department of Commerce, in 2023, the U.S. had a $26.57 billion service trade surplus with China, and the U.S. holds a significant advantage in service trade; in 2022, U.S.-funded enterprises had sales of $490.52 billion in China, far exceeding the $78.64 billion sales by Chinese-funded enterprises in the U.S., with a difference of $411.88 billion. U.S. companies’ advantage in multinational operations is even more prominent.
The proportion of the U.S. trade deficit attributable to China has declined, while the global trade deficit has increased. According to data from the U.S. Bureau of Economic Analysis, China’s share of the U.S. goods trade deficit has declined for six consecutive years, from 47.5% in 2018 to 24.6% in 2024, while during the same period, the U.S. deficit with other countries and regions has increased significantly. In 2024, the U.S. goods trade deficit totaled $1.2 trillion, an increase of 13% year-on-year, and it has exceeded $1 trillion for four consecutive years.
China’s foreign trade features large-scale imports and exports, and the same is true for China-U.S. trade. In many exports of processed manufactured goods, the value-added obtained by China accounts for only a small portion of the total value of the goods. However, the current trade statistics method calculates China’s exports to the U.S. based on the total value (i.e., the full value of the exported goods). If calculated using the value-added method, the U.S. trade deficit with China would drop significantly.
China has adopted multiple measures to actively expand imports. Actively expanding imports is China’s proactive responsibility as a major country and an important contribution to global economic development. Since November 2018, China has held the China International Import Expo (CIIE) in Shanghai every year. The number of participating countries and the intended transaction volume have increased year by year, with the total intended transaction volume exceeding $500 billion. In 2024, China’s total imports reached 18.4 trillion yuan, a year-on-year increase of 2.3%, setting a new record high. China has remained the world’s second-largest import market for 16 consecutive years.
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