Third, China's export-oriented trade policy has come at a high environmental cost. The annual economic cost of pollution in China is equal to 1.2 percent of GDP if calculated on the basis of pollution-related diseases and 3.8 percent of GDP if calculated on the basis of people's willingness to pay to avoid mortality risks.

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Fourth, a huge amount of hot money has flown into the country to the detriment of the economy. Global Financial Integrity says $400 billion flowed illicitly into China (via Hong Kong) through improper trade invoicing between 2006 and the first quarter of 2013.

The need, therefore, is to build China into a really strong trading nation. The rise of China as a responsible trading nation will not only help it accomplish its domestic economic reform goals, but also strengthen its economic relations with the world, including the US.

China's continued trade growth will create more opportunities for the US. According to US Congress Research Service estimates, China could be a $450-billion market for US businesses. Many US companies see the Chinese market as critical to their global competitiveness. China is the largest foreign holder of US Treasuries ($1.3 trillion as of Oct 2013) and has thus helped the US government to keep its interest rates low, and the import of low-cost goods from China has greatly benefitted American consumers.

Besides, China's efforts to modernize its infrastructure, upgrade its industries and improve the living standards of people in rural areas could generate substantial demand for foreign goods and services.

This year will be crucial for US President Barack Obama's National Export Initiative of doubling US exports within five years. The year will also see the Trans-Pacific Partnership reaching a tipping point and the Obama administration pushing the Transatlantic Trade and Investment Partnership forward. Obama said in his 2013 Trade Policy Agenda that his administration would use every available policy tool and develop new tools to pursue the most efficient and productive pathways for trade liberalization in order to achieve greater economic growth and create more jobs.

This means there is huge potential for developing and expanding China-US trade, which can be fully realized only if the two countries work together in the framework of a new type of major power relationship.

The author is an associate fellow at the China Institutes of Contemporary International Relations.