China-US summit boosts focus on California-China trade ties

Amid ongoing high-level engagement between China and the United States, business leaders, trade officials and industry representatives called for stronger economic cooperation, highlighting the role of free trade zones, industrial partnerships and investment facilitation in supporting global supply chains and bilateral trade.

At the 2026 China-Californian Business Forum, participants said continued dialogue between the world's two largest economies remains essential for global economic stability and long-term business confidence.

The event took place on Tuesday, a day before US President Donald Trump began his three-day state visit to China.

During a panel discussion on "Trade & Investment Opportunity in Free Trade Ports & Zones," executive director of the Port of Los Angeles Gene Seroka emphasized the importance of maintaining strong commercial ties between China and the US despite current global challenges.

"These are the two largest economies in the world, making sure that we continue to trade and build up business to new heights is my hope for this week's dialog," Seroka told China Daily. "We have a lot of work to do around policy and tariffs."

Seroka noted that the Port of Los Angeles and the neighboring Port of Long Beach continue to play a key role in facilitating trade between the US and Asia, particularly through the use of Foreign Trade Zones (FTZ) and bonded warehouse facilities that help companies manage tariff-related pressures.

According to Seroka, the Port of Los Angeles currently operates around 5,400 acres of facilities within FTZ categories, including dozens of units and subzones located near major transportation and industrial hubs near Los Angeles International Airport.

"In a very small way, the ports can assist in bringing down some of those tariff costs for importers," Seroka said.

He added that demand for these facilities has risen significantly in recent years as companies adapt to changing trade conditions and supply chain adjustments. "Right now, these facilities are very highly subscribed," he said.

Seroka also linked the discussion to broader global developments, including tensions in the Middle East and rising fuel prices, saying stable US-China relations remain important for global trade.

"While there are many geopolitical issues happening around the world today, including the war in Iran, it is our goal that the two presidents, the two leaders of the world's two largest economies, can have some progress made," he said.

Business leaders from California said the top-level engagement between Beijing and Washington sends a positive signal to industries reliant on cross-border investment and trade.

Los Angeles County Economic Development Corporation and World Trade Center LA president and CEO Stephen Cheung said as one of American leading international trade gateways, LA benefits significantly from economic cooperation with China.

"We're so dependent on international trade and foreign direct investment, we see this opportunity between the US and Chinese government getting together as a positive step," Cheung told China Daily.

According to Cheung, Chinese-invested enterprises currently support more than 23,500 jobs across California through 756 business establishments, generating an estimated $4 billion to $5 billion in annual wages. He said these investments support sectors critical to California's future development, including advanced manufacturing, clean technology, logistics, trade and innovation.

Chinese officials and investment representatives attending the forum also highlighted opportunities created by China's continued opening-up policies and the development of pilot free trade zones and free trade ports.

Vice-governor of Hainan province Zhao Feng said Hainan has expanded industrial cooperation with the US in sectors including the digital economy, healthcare, information technology and high-end consumer goods.

According to Zhao, several American enterprises have established operations in Hainan in recent years, supporting development in digital services, data processing and technological innovation. In healthcare, cross-border medical projects have also strengthened cooperation between Chinese and US institutions, while well-known American consumer brands have increased their participation in the Chinese market through the China International Consumer Products Expo.

"These projects reflect the growing industrial synergy between Hainan and the United States and underscore the broad potential for mutually beneficial cooperation between the two sides," Zhao said.

Li Zhiping, deputy director-general of the Department of Commerce of Hainan province, said Hainan Free Trade Port is positioning itself as a platform for high-level opening-up and international cooperation.

"Hainan is using institutional opening-up to offset uncertainties in the international landscape," Li said, adding that the province remains committed to protecting the rights and interests of American and global investors through institutional openness.

Representatives from Shanghai also highlighted efforts to improve market access and the business environment for overseas investors.

Wu Yiyuan, chief representative of the San Francisco Office of Shanghai Foreign Investment Development Board, said many California companies continue to hold misconceptions about China's market access environment.

"One common misconception is that market access to China is still highly restricted," Wu said, noting that China's negative list system allows foreign investment unless a sector is specifically restricted, and that the list has become increasingly shorter over time.

Wu said Shanghai's latest opening-up measures focus on sectors closely aligned with California's industrial strengths, including healthcare, finance, artificial intelligence, telecommunications and advanced manufacturing. She also pointed to recent improvements in cross-border data governance and administrative efficiency.

"Once companies gain a clearer picture of the market and better local support, many of the initial concerns become much more manageable," Wu said.

Business representatives at the forum also stressed the importance of trade facilitation programs for small and medium-sized enterprises.

David Harlow, president and CEO of ITC Diligence International, said FTZ programs provide operational flexibility for California manufacturers importing components from China while supporting export-oriented production.

"The FTZ program offers a tremendous amount of flexibility," Harlow said, adding that such arrangements allow businesses to minimize disruptions to manufacturing, assembly and distribution processes.

Harlow also shared the example of a California company that imports a large share of its components from China before conducting final-stage manufacturing in California and exporting products globally.

"Ninety-five percent of our consumers do not exist in the US, but exist around the world," Harlow said. "For US businesses to be able to compete globally, utilizing programs like the FTZ become essential."