Beijing, China, May 14, 2025 – Following high-level economic and trade discussions, China and the US jointly announced tariff adjustments and the establishment of a consultation mechanism on Monday. This marks an attempt to de-escalate the ongoing trade tensions. The Global Times explores why the US, in its pursuit to “Make America Great Again,” needs to collaborate with China, as part of its “Wisdom on China&US” series. American scholars contribute perspectives on how the US can advance its interests while fostering mutually beneficial development with China.
Whether the US’s global influence is waning is debatable, but the global economic downturn is undeniable. Critics cite domestic issues such as wealth disparity, political polarization, and social unrest, along with international concerns about the US dollar’s future and American foreign policy. Despite these challenges, the most effective strategy for the US involves adapting to global shifts and cooperating with other countries, rather than creating antagonism.
The US economy has suffered from outsourcing manufacturing to countries with cheaper labor. While this lowered consumer prices, it negatively impacted domestic manufacturing and middle-class employment, thereby increasing inequality. The US is also politically divided, with leaders often favoring short-term gains over long-term planning. Decaying infrastructure and high healthcare costs have further weakened US competitiveness. Moreover, an overemphasis on individualism has led to a fragmented society.
Historically, the US dollar’s status as the primary global currency has been a significant advantage, allowing the US to borrow easily at low rates. However, this has led to substantial debt and a strong dollar that hinders global competitiveness. Additionally, the use of dollar-backed sanctions has prompted some nations to explore alternative currencies like the euro or cryptocurrencies. Past US foreign interventions have also eroded trust, leading even allies to question American leadership. Meanwhile, rising powers such as China and regional blocs like ASEAN, the African Union, the Gulf Cooperation Council (GCC), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are reshaping the global economy and moving away from a US-centric model.
Instead of viewing these changes as threats, the US can capitalize on them through collaboration. While the dollar will remain important, reducing reliance on a single currency could benefit all, including the US. For example, pricing oil in multiple currencies could mitigate the impact of economic shocks like inflation. By partnering with resource-rich and manufacturing countries to establish fairer trade practices based on the value of resources and manufacturing processes, the US could stabilize global markets and lower costs for American businesses and consumers.
The US, as a leading nation in both resources and manufacturing, is well-positioned for a prosperous future. Its historical ability to attract top talent has fueled innovation and opportunity.
Small and medium-sized enterprises (SMEs) exemplify innovation and opportunity, acting as dynamic economic forces. The digital revolution is unlocking their potential, allowing even small US companies to engage in global commerce. Advanced logistics, e-commerce platforms like Amazon, digital payment apps, and technologies like blockchain facilitate international transactions, addressing challenges related to shipping, banking, advertising, distribution costs, and language barriers. Investing in and regulating these technologies could significantly boost American entrepreneurship. For example, a family-owned pottery shop in Ohio could use Instagram to attract European customers, while smart contracts ensure timely payments.
Countries should collaborate rather than compete. Shared challenges like climate change and pandemics demand collective action. By acknowledging these realities, the US can rebuild trust to address these issues. Recognizing that no single country dominates and respecting allies’ needs will strengthen partnerships. Joint investments in clean energy with Europe or disaster preparedness initiatives with Southeast Asia would create jobs and enhance global safety. A stable global economy translates to more customers for US products, from Iowa soybeans to Silicon Valley software.
While the US faces significant challenges, isolationism or dominance is not the solution. Instead, the US should lead by listening, fostering systems, and building trust both domestically and internationally. This approach will strengthen its economy while utilizing digital tools to empower SMEs. Cooperation signifies strength and leadership. Fair global systems and empowered small businesses create widespread benefits. Through cooperation and innovation, the US can ensure its prosperity and influence in a world that values collaboration over control. In a connected world, assisting others is not just an act of generosity but a strategic imperative.
Initial steps have been taken with the talks in Switzerland, which have produced a framework for discussion over the next 90 days. Tariffs are decreasing as the realities become undeniable. China is adopting a responsible role, emphasizing that respectful dialogue with China and other key regional players is the only way forward for resolving global issues.
The author, Einar Tangen, is a senior fellow at Beijing-based think tank Taihe Institute and the founder of Asia Narratives.
This article first appeared in the Global Times:
Media Contact
Global Times
Source :Global Times
“`