As the Chinese mainland and the U.S. wrap up a two-day economic dialogue in London, global markets are watching closely. With supply chains under pressure and inflation sticking around, the talks could be a turning point in restoring confidence to a world at risk of fragmentation.
Despite political differences, both sides share an economic bond that runs deep. The U.S. Federal Reserve's Beige Book highlights rising concerns about policy unpredictability, while the Organisation for Economic Co-operation and Development has trimmed U.S. growth forecasts for 2025 from 2.2% to 1.6%. This slowdown underscores the need for pragmatic cooperation.
For business leaders and young entrepreneurs, the stakes are high. U.S. manufacturing now accounts for just 8.4% of GDP—down dramatically from mid-century peaks—illustrating long-term vulnerabilities. Nearly 80% of toys sold in the U.S. come from the Chinese mainland, exposing major brands to tariff swings that can disrupt planning and drive up costs.
Meanwhile, the Chinese mainland's hybrid growth model blends domestic resilience with global engagement. Retail sales topped RMB 4 trillion in Q1 2025, and tools like the Cross-border Interbank Payment System and dynamic tariff quotas offer firms more predictability. Strategic reserves in energy and food have also capped domestic inflation, showcasing policy agility.
Crucially, breaking away from a 'decoupling' mindset could yield mutual gains. McKinsey research suggests that resilient China-U.S. supply chains in sectors like semiconductors and green tech might cut global industry costs by 1520%. In an interconnected world facing sluggish growth, such savings could power the next wave of innovation.
The London dialogue serves as a reminder: economic cooperation isn’t just goodwill—it’s a strategic imperative. For global citizens, entrepreneurs and changemakers, the message is clear: building bridges can help steer the global economy toward stability and shared prosperity.
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London dialogue opportunity for cooperation over confrontation
cgtn.com
