China, US must talk their way out of trade trouble

Editor's note: The leaders of China and the United States agreed on the sidelines of the G20 Summit in Osaka, Japan, to restart the economic and trade consultations between the two countries on the basis of equality and mutual respect. Xinhua News Agency comments:

The easing of trade tensions between China and the US came as no big surprise, as it is common wisdom that only dialogue can address the sticking points between the two sides.

Maximum pressure tactics will not work when it comes to solving trade disputes between the two largest economies. There is only one track to reaching a deal between China and the US: dialogue and cooperation.

China and the US, after decades of engagement on all fronts, are so interconnected that it is just impractical and impossible for them to decouple. Nobody knows this better than US companies which rely on the Chinese market for production and sales. Any attempt to sever the two countries' economic and trade ties will prove painful and fruitless.

The trade frictions instigated by the US have given the global capital markets the jitters, disrupted the supply chains of multinationals, and been a heavy drag on the economic growth of both countries and the world at large.

The World Bank lowered its 2019 and 2020 global economic growth forecasts in June, while Conference Board data showed that US consumer confidence fell in June to the lowest level since September 2017 as heightened trade tensions apparently took a toll on market sentiment.

That's why the voices against the US imposing additional tariffs on Chinese imports have become so loud in the US, particularly among the business community.

The lessons should be learned, and the cautionary voices in the US and global concerns should be heeded.

Of course, the agreement between the two leaders does not necessarily mean a deal is imminent. But after so many rounds of talks as well as tit-for-tat measures, the US should know better than before China's fundamental principles and stance, and both are now more experienced and better equipped to manage their divergences.

Much work still needs to be done. It might take open-mindedness, patience and even compromises to work out a deal based on equality and mutual respect. But history shows that the two countries can always navigate rough seas and keep moving forward.