US-China Economic Ties: A History of Volatility

Business Standard · business

Economic relations between the US and China have historically swung between cooperation and conflict, from the Nixon-Mao meeting in 1972 to recent trade wars. China's economic rise, beginning with Deng Xiaoping's reforms in 1979, was significantly aided by US multinational enterprises. Despite a trade deficit for the US since 1999, and recent declines in FDI and job creation, US FDI into China reached a 27-year high in 2025. This complex dynamic underscores the significance of recent high-level meetings between the two economic giants.