China Vows to Protect Companies in the US Amid Push for Stronger Trade Ties

China has promised to protect its companies in the US while working to stabilize trade relations with Washington. At a New York meeting, Commerce Minister Wang Wentao urged Chinese firms to adopt diversified strategies amid rising protectionism. Highlighting progress from recent trade talks, Wang emphasized mutual cooperation and warned against harmful price competition. The pledge follows high-level US-China engagement, with the upcoming APEC summit set to shape future trade dynamics.

China has reaffirmed its commitment to safeguarding the legitimate rights of its companies operating in the United States while striving to stabilize economic and trade relations between the two nations. This announcement comes as Beijing and Washington continue to engage in negotiations aimed at easing ongoing trade tensions.

During a roundtable held in New York on Tuesday, Chinese Minister of Commerce Wang Wentao met with executives from more than a dozen Chinese enterprises operating in the US. The meeting, which included the head of the China General Chamber of Commerce in the US, provided a platform to address key challenges and opportunities for these businesses in a turbulent global trade environment.

Warning Against Unilateralism and Protectionism

Wang expressed concern over the adverse impact of rising unilateralism and protectionist measures on the global trade system. He called on Chinese companies to remain proactive in navigating the current climate, encouraging them to adopt diversified strategies and adhere to compliance standards.

“Amid the uncertainties, it is vital to seek stability and maintain mutual support,” Wang said, emphasizing that China would work diligently to stabilize economic and trade ties with the US while ensuring the rights of Chinese businesses are upheld.

Broad Industry Representation and Optimism for Cooperation

The meeting brought together representatives from various sectors, including finance, logistics, cross-border e-commerce, petrochemicals, telecommunications, rail transit, auto parts, new energy, and pharmaceuticals. Wang expressed optimism about fostering a mutually beneficial business environment that could enhance collaboration between enterprises from both countries.

He also highlighted the progress achieved through multiple rounds of trade discussions between the US and China. According to Wang, these negotiations have yielded agreements that have contributed to stabilizing bilateral economic and trade relations, offering a foundation for future cooperation.

High-Level Engagement and Key Developments

The meeting followed a recent phone call between Chinese President Xi Jinping and US President Donald Trump, which analysts believe could set the stage for a potential meeting at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea next month.

In the interim, a significant development is expected as President Trump prepares to finalize a deal regarding the operations of TikTok in the US. The Chinese-owned social media platform has been a focal point in trade disputes, symbolizing broader tensions between the two nations.

Addressing Harmful Business Practices

Wang also urged businesses to resist engaging in harmful price-cutting practices known as “involution.” This term, which originates from the Chinese concept of neijuan, describes excessive competition that leads to diminishing returns, stifling innovation and undermining efficiency. Beijing has been actively working to address these behaviors, with China’s leadership calling for stricter regulation of disorderly low-price competition to promote industrial upgrades and improve product quality.

A Step Towards Stability

As Beijing and Washington navigate the complexities of their trade relationship, China’s pledge to protect its businesses and foster stronger collaboration underscores its commitment to long-term stability. While challenges remain, the dialogue between the two nations signals a willingness to work toward mutually beneficial outcomes in an increasingly interconnected global economy.

The next few weeks, particularly with the anticipated APEC summit, will be crucial in determining the trajectory of US-China trade relations, offering both opportunities and challenges for businesses on both sides of the Pacific.