Stable ties to lift business confidence, say executives

Greater stability and predictability in China-US economic ties would enable companies in both countries to invest, trade and plan for the long term with more confidence, market watchers and business executives said.

Their comments came after the Ministry of Commerce announced last week that China and the United States are in consultations on a framework arrangement for reciprocal tariff reductions covering $30 billion worth of products from each side.

The talks are part of broader efforts by the two countries to implement the consensus reached by the two heads of state and stabilize bilateral economic and trade relations.

Although the framework is yet to be formally implemented, experts said potential beneficiaries could include US agricultural products, pharmaceuticals and industrial equipment, as well as Chinese consumer goods, machinery, electronics and intermediate products.

Wan Zhe, a professor of international trade at Beijing Normal University, said progress in tariff talks would help reduce policy uncertainty, improve the business environment for companies on both sides and encourage US companies to expand their investment and operations in China.

Da Wei, a professor of international relations at Tsinghua University in Beijing, said global supply chains have proved far more resilient and interconnected than anticipated by many, with restrictions prompting companies to reorganize and diversify their production networks rather than sever existing economic ties.

"Even as China and the US seek to reduce vulnerabilities in strategically sensitive sectors, their broader commercial ties will remain deeply intertwined, as extensive supply-chain connections and business relationships continue to underpin economic interdependence," he said.

US businesses and industry groups have echoed that view, stressing the importance of stable bilateral ties and continued market access to sustaining trade and long-term cooperation with China.

Jim Sutter, CEO of the US Soybean Export Council, said the US soy industry is optimistic about the prospects of US-China economic and trade relations and looks forward to more positive developments through continued high-level engagement between the two countries.

Sutter said predictable market access helps facilitate smoother trade flows that benefit both nations. "US farmers have always valued China as an important trading partner and their largest market, and the US agricultural sector remains firmly committed to open and free trade," he added.

Speaking at a roundtable meeting held in Beijing last week, Zhang Lipei, vice-president of the US-China Business Council, said that for US companies with long-term operations in China, greater certainty in bilateral economic and trade relations would encourage further investment and help them capture new opportunities in the Chinese market.

That improving sentiment is also reflected in a recent survey by the American Chamber of Commerce in Shanghai. The share of respondents optimistic about their five-year business outlook in China rose 17 percentage points to 58 percent, reversing four consecutive years of decline, according to the chamber's 2026 China Business Report.

The report also showed that nearly one-third of respondents planned to increase spending in China this year. Profitability among surveyed companies reached its highest level since 2019, with 78 percent reporting profits in 2025, up 7 percentage points from the previous year.

At the corporate level, Liu Chang, vice-president of North Asia at Cargill Inc, said China remains one of the US agribusiness group's most important markets and a vital part of the global agricultural and food value chain.

"Maintaining dialogue sends a positive signal, and sustained cooperation is a sign of confidence," Liu said. "China's growing innovation capabilities, evolving consumer demand and further opening-up are creating new opportunities in areas ranging from digitalization and artificial intelligence to green development."

Henry Ding, president for China at US industrial conglomerate 3M, said no company can succeed alone in today's fast-changing market, making win-win collaboration and industry-wide cooperation essential to long-term success.

The US company and Chinese panel manufacturer BOE Technology Group Co jointly opened a laboratory last month, bringing together BOE's innovation expertise and 3M's materials science capabilities to develop advanced display solutions.

China and the US together account for nearly 45 percent of global GDP, making the two economies major engines of the world economy. The depth of commercial ties is evident in the roughly 84,000 US-invested companies operating in China, which generate close to $700 billion in annual revenue, according to information released by the National Development and Reform Commission.

Despite persistent differences between the two countries, China-US trade reached 2.76 trillion yuan ($412 billion) in the first eight months of this year, up 1.3 percent year-on-year, data from the General Administration of Customs showed.