Stein explained the structural reasons why US companies are not leaving China, with some deepening their partnerships there.

"What I'm seeing now increasingly, though, is as China's economy has grown and as the private sector has become stronger, more companies are choosing to develop joint ventures and to partner very closely with Chinese companies — because they bring real value to the relationship," he said.

The shift reflects China's economic modernization, with Chinese enterprises now able to work with multinational companies, including US ones, on a more equal footing, he added.

In past decades, companies entering China were required to take a local partner, but over time, as China continued reform and opening-up, more wholly foreign-owned enterprises have been launched, meaning that companies have gained more flexibility.

Another reason that US companies are not leaving China is the fact that the nation's regulatory system "has improved greatly over the last decade", even if "there's still room for improvement", according to Stein.

New path for ties

He also said that the recent meeting between President Xi Jinping and US President Donald Trump in Busan, South Korea, set a new, much more pragmatic path for US-China relations, one that he said is applauded by the business community.

When asked about the US administration's moves imposing steep tariffs on imports from China, Stein said the US-China Business Council has long argued that tariffs do not strengthen the US economy or make US companies more competitive globally.

"That's a realization that's increasingly sinking in on the US side," he said.

Stein urged policymakers to learn lessons from the trade conflict, saying that costs are real, and "our hope is that lesson is much more widely learned within the policymaking circles".

Speaking at a roundtable discussion with representatives of the US-China Business Council and its member companies, Ren Hongbin, chairman of the China Council for the Promotion of International Trade, said that history has repeatedly shown that both countries benefit from engagement and suffer when tensions escalate.

"If China and the US cooperate, it will bring win-win outcomes. If they confront each other, it can only lead to lose-lose results," Ren said.

He added that despite ups and downs in the bilateral relations, the friendship between the two peoples and the business communities' desire to work together have remained unchanged and continue to give both sides the confidence to move forward.

50th anniversary of bond

This year marks the 50th anniversary of the first visit to the US by a delegation of the China Council for the Promotion of International Trade, and Ren is leading some 50 Chinese companies to Washington for the talks.

He said the delegation's chief aim is to carry out the consensus reached by the two nations' heads of state, who have already outlined the direction for the relationship.

The task now, especially for businesses, is to follow through and turn top-level agreements into reality. Though challenges exist, cooperation can lead to solutions, Ren said.

The CCPIT delegation visited Canada from Sunday to Tuesday before heading to the US.

huanxinzhao@chinadailyusa.com