Cooperation between China and the US is not only in their own national interests, it is also of significance to global economy

Bilateral trade and economic cooperation between China and the United States have developed steadily since the two countries established diplomatic relations 34 years ago.

Trade in goods between China and the US jumped from $2.45 billion in 1979 to $484.7 billion in 2012. Imports from the US were worth $132.9 billion in 2012, an increase of 8.8 percent over 2011, and the US became China's largest export market again in 2012, with China's exports to the US worth $351.8 billion in 2012, up 8.4 percent on the year before.

By the end of 2012, the US had invested $70.19 billion in 62,369 projects in China , and the US remains one of the largest sources of China's foreign investment. Meanwhile, China's investment in the US has also increased. In 2012 China's non-financial direct investment in the US was $1.87 billion, up 65 percent on 2011. By the end of 2012, Chinese enterprises' non-financial investment in the US totaled $9.4 billion.

As the largest developing country and the largest developed country in the world, China and the US can complement each other in many fields such as natural resources, human resources, capital and technology. The US is now a post-industrialized economy, and it leads the way in high technology and the service industry. China is in the mid to late period of industrialization and has the largest market in the world and the largest pool of cheap labor. Moreover, China will realize its target of becoming a well-off society in 2020, and its per capita GDP is expected to quadruple in 2020 compared with that of 2000. This means a huge demand for mechanical, electrical and agricultural products, luxury goods and services from the US.

As two largest greenhouse gas emitters, China and the US have both promised to reduce their emissions of greenhouse gases, deal with climate change, protect the environment and realize global sustainable development. Cooperation in clean energy will become increasingly important as both sides combat the effects of global warming. The two countries can cooperate in technologies such as carbon sequestration to reduce carbon emissions.

As China's process of urbanization speeds up, Chinese households' demand for agricultural products will rapidly grow, which will also lead to a rapid growth in the demand for animal feed and grains. In 2012, China imported a record 59 million tons of soybeans and 16 million tons of other grains. As China's middle class expands, consumption of meat and poultry will increase steadily. The US' advanced agricultural technologies and management experience can help China support 22 percent of the world's population using 7 percent of the world land.

The US' technology level is far ahead of that of China due to its long-term investment in human resources and research. China is increasing its investment in human resources and research and development, and there is much potential for cooperation between the two countries.

As the two largest energy producers and consumers, the energy output of China and the US accounts for 30 percent of the global total, while the energy consumption of the two countries accounts for 40 percent of world's total. The US has promised to realize energy independence in the next decade, and China also expects to realize that goal in the future. China and the US have common goals in energy security. Both countries promise to guarantee global sustainable development, which will become the main impetus of energy cooperation between them.

The US population is expected to reach 400 million in 2030, while its infrastructure such as highways and public facilities are aging. Infrastructure construction will be a hotspot of China's investment in the US. If China can seize this opportunity, in the next five years China's direct investment in the US may catch up with or even surpass the US' direct investment in China.

Economic and trade relations between China and the US play a key role in the global economic system. As the two largest economies in the world and the two most important engines of global economic growth, economic ties between China and the US are more than merely bilateral relations, and cooperation between them is not only in their own national interests, it is of great significance to global economic development.

China and the US should find more common interests and explore more cooperation opportunities for the benefit not just of themselves, but also the rest of the world.

The author is a researcher with Chinese Academy of International Trade and Economic Cooperation, affiliated to the Ministry of Commerce