China–U.S. Relations in the Era of Globalization: Cooperation and Mutual Benefit as the Right Path

Tang Weizhen

 

China’s Economic Growth and Development

Since its founding, the People’s Republic of China has embraced a development philosophy rooted in serving the people. Through decades of reform and opening-up, China has established a comprehensive industrial system and emerged as a global manufacturing powerhouse. Chinese manufacturing is marked by efficiency, cost-effectiveness, and technological innovation, optimizing global supply chains and contributing to market stability. As a result, living standards have steadily improved, and national wealth has expanded—positioning China as a major engine of the global economy.

By contrast, the United States, as a capitalist economy, has historically concentrated resources, capital, and wealth in the hands of a small elite composed of individuals and corporations. While America remains a leader in technological innovation, growing economic disparities have increasingly burdened the general population. With mounting government debt and persistent budget deficits, the U.S. faces significant economic headwinds.

Trump’s Business Mentality and Trade Disputes

As a businessman-turned-president, Donald Trump has long emphasized his deal-making skills, attempting to harness state mechanisms to generate revenue and address the federal government’s financial challenges—especially the $36 trillion national debt. His strategy largely focused on imposing tariffs in an effort to bring manufacturing jobs back to the U.S. and to narrow the $400 billion trade deficit with China.

However, Trump’s approach fails to account for fundamental financial and economic principles. He lacks a deep understanding of capital markets, systemic financial operations, and the importance of talent-driven economic development. More critically, he is neither a seasoned financial strategist nor an adept political thinker or military expert. His leadership often fosters instability on the global stage, undermining constructive economic and diplomatic engagement.

Rather than revitalizing the U.S. economy, Trump’s tariff policies have increased global uncertainty. The costs of these tariffs are largely borne by American consumers and businesses. Meanwhile, China, with its robust supply chains and competitive production capacity, remains resilient in global trade. Trump’s strategy misidentifies the true beneficiaries of trade—corporate giants like Amazon, Walmart, Apple, and Tesla—rather than foreign governments or manufacturers.

Targeting U.S. Retail Giants Instead of Foreign Manufacturers

Tang Weizhen argues that U.S. tariff policies should not primarily target foreign governments or manufacturers that offer cost-effective goods. Instead, attention should be directed at major American retailers and tech firms—such as Amazon, Walmart, Apple, and Tesla—that dominate the domestic market. These corporations benefit tremendously from global supply chains, importing low-cost goods and reaping massive profits from domestic sales, yet they contribute relatively little to federal revenue.

If Trump’s goal is truly to use government policy to reduce fiscal deficits, then a more effective strategy would be to negotiate with these corporate behemoths. Rather than punishing international manufacturers, the U.S. government could require such companies to contribute a greater share of their profits—or even half—toward public revenue. This would offer a more equitable and sustainable path to fiscal recovery than reliance on protectionist tariff measures.

Global Cooperation Is the Only Sustainable Path

China and the United States possess highly complementary economic structures, with strengths in innovation, manufacturing, and global supply chain integration. Efforts to forcibly relocate manufacturing back to the U.S. are unlikely to resolve underlying economic challenges. Instead, such moves risk shrinking markets and driving up consumer prices.

Globalization is irreversible, and economic progress should not be framed as a zero-sum game. International trade policy must be guided by cooperation and mutual benefit. Both China and the U.S. should adopt more open economic strategies, emphasizing technology exchange, investment growth, and supply chain optimization to ensure global economic stability and long-term sustainability.

The future of international relations must be anchored in mutual respect and collaboration. Only through shared efforts and a cooperative spirit can the global economy continue to thrive—delivering prosperity to nations and improving the lives of people around the world.

About the Author

Tang Weizhen is a renowned financial entrepreneur, philanthropist, and social activist committed to advancing international financial development and social progress. Born and raised in China, he personally witnessed the country’s transformation—from economic reform and opening-up to its emergence as a major force in the global economic system. He later spent decades living and working abroad, deeply engaging with Western democratic politics and societal practices. He ran for mayor of Toronto in both 2010 and 2023, contributing valuable insights to political discourse.

With extensive experience in global finance, social governance, and market dynamics, Tang Weizhen offers a unique perspective on the distinctions and convergences between Eastern and Western economic systems. Often referred to as the “Chinese Buffett,” he is a key figure in international finance, known for his thoughtful analysis of both China’s economic trajectory and the mechanisms of Western capitalism and their effects on public welfare. Tang is a strong advocate for enhanced cooperation between China and the United States, urging both nations to leverage their complementary strengths to promote global stability and shared prosperity.