In the 36 years since China and the United States established diplomatic ties, China-U.S. commercial relations started from scratch and took off. Last year, bilateral trade in goods hit $555.1 billion, up 227-fold since diplomatic relations were forged and reflecting the integration of China’s economy with the world economy.
In fact, just three hours after China and the U.S. established diplomatic relations in 1979, Coca-Cola announced its entry into the Chinese market, bringing a whole new experience to tea-drinking Chinese consumers and introducing them to modern marketing based on the value of brand. Gradually breaking into the Chinese market, Coca-Cola won the hearts of Chinese consumers. In the following three decades, drink makers from the two countries have cooperated and competed extensively in the Chinese market.
Textiles used to be an important Chinese export to the U.S. From cloth to garments, from street vendors to shopping malls, from processing to design, China’s textile business has come a long way. Many U.S.-branded garments were made in China and exported to the U.S., where they found their way to fancy department stores such as Macy’s. Now, many brands like GAP and Nike are opening chain stores in China, while many Chinese clothing companies are attracted to the U.S. for design ideas and talents.
Intellectual property is a key concern in China-U.S. commercial cooperation. In 1992, China and the U.S. signed a memorandum of understanding on intellectual property rights, which helped many Chinese people recognize for the first time that this invisible and intangible thing needs to be valued and protected. Today China ranks the top globally in terms of the number of patent applications. Respecting intellectual property brings huge benefits to both sides.
In recent years, the number of Chinese enterprises investing in the U.S. has risen rapidly, while numerous cases attest to the mutual benefits. Over the last four decades, for example, Wanxiang Group has grown from a small workshop for agricultural machinery into a big business with global presence. Since its entry into the U.S. market, Wanxiang has successively acquired more than 20 companies and saved over 10 manufacturing factories that had been on the verge of bankruptcy. Altogether it hired 12,500 people in the U.S. Today, one out of every three cars produced in North America uses parts and components that are made by Wanxiang America Inc.
As President Xi Jinping visits the United States this week, history tells us that Sino-U.S. economic cooperation is win-win. For more than 30 years, our bilateral trade and investment has brought real benefits to our peoples and contributed to great development in both countries.
Looking ahead to the next decade, bilateral trade and investment may double again, and by 2024 the volume of bilateral trade is likely to exceed $1 trillion. China-U.S. commercial cooperation has broad prospects and enormous potential.
