Preface As the world's largest developing country, China is also the largest contributor to annual global economic growth. As the largest developed country, the United States boasts the largest economy in the world. The China-US economic and trade relations hold profound significance for both countries and exert a substantial influence on global stability and development. Over the 46 years since the establishment of diplomatic relations between China and the US, bilateral trade and economic ties have developed steadily. The volume of trade between the two countries has surged from less than US$2.5 billion in 1979 to nearly US$688.3 billion in 2024. The China-US economic and trade cooperation has continued to expand and improve, making significant contribution to the economic and social development, and wellbeing of the peoples of both countries. However, in recent years, the rise of unilateralism and protectionism in the US has significantly impeded the course of normal economic and trade cooperation between the two countries. the beginning of trade friction between China and the US in 2018, the US side has imposed high tariffs on Chinese exports worth more than US$500 billion. Furthermore, it has continuously implemented policies aimed at containing and suppressing China. The Chinese side has to take forceful countermeasures to defend its national interests. At the same time, committed to resolving disputes through dialogue and consultation, the Chinese side has engaged in multiple rounds of economic and trade consultations with the US side to stabilize bilateral economic and trade relations.  On January 15, 2020, China and the US signed the Economic and Trade Agreement Between the Government of the People's Republic of China and the Government of the United States of America (also known as the Phase One Economic and Trade Agreement). Following its entry into force, the Chinese side upheld the spirit of contract and endeavored to overcome multiple adverse factors, including the unexpected impact of the pandemic, subsequent supply chain disruptions, and global economic recession, to ensure implementation of the Agreement. The US side issued several statements affirming the effectiveness of the Chinese side's efforts. In contrast, the US side has continuously tightened export control, escalated sanctions against Chinese enterprises, and repeatedly violated its obligations under the Agreement. Recently, the US side 1 issued the America First Trade Policy Memorandum, the America First Investment Policy Memorandum and the Report on the America First Trade Policy Executive Summary, 2imposed comprehensive additional tariffs on Chinese products, including tariffs citing the fentanyl issue as the pretext, 3 announced "reciprocal tariffs", levied an additional 50 percent on existing tariffs, and proposed Section 301 investigation restrictions, such as charging port fees, targeting China's maritime, logistics, and shipbuilding industries. These restrictive measures have escalated the problem, and again reveal the isolationist and coercive nature of US conduct. They are in conflict with the principles of the market economy, run counter to multilateralism, and will have serious repercussions for China-US economic and trade relations. In accordance with the fundamental principles of international law and relevant laws and regulations, the Chinese side has taken necessary countermeasures. The US imposition of tariffs and other restrictive trade measures on its trading partners has artificially disrupted established global supply and industrial chains, undermined market-oriented free trade rules, severely hindered the economic development of various countries, harmed the wellbeing of both the American people and those of other countries, and negatively impacted economic globalization. The Chinese side has always maintained that China-US economic and trade relations are mutually beneficial and win-win in nature. As two major countries at different stages of development with distinct economic systems, it is natural for China and the US to have differences and frictions in their economic and trade cooperation. It is crucial to respect each other's core interests and major concerns, and find proper solutions to resolve the issues through dialogue and consultation. The Chinese government is issuing this white paper to clarify the facts about China-US economic and trade relations, and elaborate the position of the Chinese side on relevant issues. I. China-US Economic and Trade Relations Are Mutually Beneficial and Win-Win in Nature Since the establishment of diplomatic relations between China and the US, the two sides have achieved fruitful outcomes in bilateral trade and investment cooperation, realizing complementarity and mutual benefits. China and the US share extensive common interests and vast potential for cooperation. Maintaining the stable development of China-US economic and trade relations is in the fundamental interest of both nations and peoples, which is also conducive to global economic development. The fact shows that cooperation between China and the US benefits both sides, while confrontation harms both. Cooperation is essential to mutual benefits and win-win outcomes. 1. China and the US Are Important Partners of Trade in Goods China-US two-way trade in goods has grown rapidly. Statistics from the United Nations (UN) show that in 2024, the volume of trade in goods between China and the US reached US$688.28 billion, which was 275 times the volume of the trade in 1979, when diplomatic relations were established between the two countries, and more than eight times the volume of the trade in 2001, when China joined the World Trade Organization (WTO). Currently, the US is China's largest goods export destination and the second-largest source of imports. In 2024, China's exports to the US and imports from the US accounted for 14.7 percent and 6.3 percent of China's total exports and imports for the year. China is the US's third-largest export destination and second-largest source of imports. In 2024, US exports to China and imports from China accounted for 7.0 percent and 13.8 percent of the US total exports and imports for the year respectively. US exports to China have grown much faster than its exports to the rest of the world. Since China's entry into the WTO, US exports to China have grown rapidly, making China an important export market for the US. According to UN statistics, in 2024, US goods exports to China reached US$143.55 billion, representing a 648.4 percent increase from US$19.18 billion in 2001, which far exceeded its overall export growth of 183.1 percent during the same period (Figure 1).