As the world's two largest economies, China and the US have both benefited greatly from bilateral economic and trade cooperation. While two-way trade and investment bring tangible benefits to businesses and consumers in both countries, the unilateral US tariffs and trade restrictions have significant negative impacts. Given the mutual advantages of their relationship, it is in Washington's interest to adopt a more rational approach in pursuing its trade policy toward China.

The industrial structures and market demands of the two countries are highly complementary. China, as the world's second-largest consumer goods market and a major manufacturing power, possesses a complete industrial chain and strong production capacity.

The US, on the other hand, is the world's largest consumer market and a hub of technological innovation, backed by a mature financial system. Through trade and investment, the two nations have achieved optimized resource allocation and mutual benefits.

There remains a vast potential for China-US economic cooperation. In 2024, bilateral goods trade exceeded $688 billion, spanning sectors such as technology, energy and agriculture. Together, the two economies account for one-third of global GDP and one-fifth of global trade, making their cooperation vital to global economic stability.

And, their economic engagement has created many jobs and great growth opportunities. With global supply chain acting as the foundation, US agricultural exports and Chinese manufacturing investments have expanded steadily, injecting momentum into both economies.

Both consumers and businesses of the two nations have benefited from this cooperation. US consumers have enjoyed lower living costs by purchasing high-quality, affordable goods from China, while Chinese consumers have gained broader product choices through imports from the US. Companies from both nations have found vast market opportunities and investment returns in each other's economies.

The two-way flow of technology and capital has further deepened bilateral cooperation. US innovations help boost the development of Chinese enterprises, and China's vast market has provided strong returns for American tech companies.

However, the US imposition of additional tariffs on China has negatively affected bilateral trade and brought serious consequences to American businesses and consumers. China-US trade has created millions of jobs for the US, particularly in agriculture, manufacturing, and services. Many American companies - such as Apple and Tesla - have gained substantial profits from sales and localized production in China. China's efficient supply chains help US companies reduce costs, fueling innovation and industrial upgrading in high-value-added sectors.

The imposition of steep tariffs has raised costs for US businesses too, especially in imported raw materials and intermediate goods, undermining the competitiveness of many sectors like electronics and automobiles. The US tariffs have also driven up consumer prices, reduced people's purchasing power, and exacerbated inflationary pressures in the US.

Moreover, US tariffs have disrupted global supply chains, causing shortages in raw materials and production delays - particularly in critical areas such as EV batteries. The escalation of tariffs has heightened global market uncertainty, dampening investor confidence and hampering the long-term development prospects of American businesses.

The China-US high-level economic and trade dialogues in recent months demonstrate a shared willingness to resolve differences through communication. The US needs to adopt a more rational approach within the dialogue mechanism and work with China to address its economic and trade challenges.

Policies driven by protectionism and technology de-coupling used to cause confrontation, undermine the longstanding atmosphere of mutually beneficial cooperation, while seriously disrupting global industrial supply chains. Such approaches limit the potential for collaboration and harm American businesses and its consumers. A unilaterally protectionist stance adds to global market volatility, which ultimately backfires on the US economy.

If the US chooses to admit the fundamentally mutually beneficial nature of China-US economic relations and make policy decisions based on facts, rather than political calculations, this will help release the potential of bilateral trade between the two parties.

By heeding calls of businesses and consumers and acknowledging the negative impacts of the tariffs on cost structures, market expectations, and supply chain stability, the US can turn to rationally adjust its approach to ramp up economic engagement with China. Doing so would not only maximize its own economic interests but also help maintain the stability and prosperity of the global trading system.

The author is a senior fellow at the Center for International Security and Strategy, Tsinghua University. bizopinion@globaltimes.com.cn