Trade between the US and China has grown rapidly in recent decades and is very important for both countries. Currently, China is one of the largest export markets for US goods and services (second after Mexico), and the United States is a major export market for China. This trade—which largely grew after China joined the World Trade Organization (WTO) in 2001—has resulted in lower prices for US consumers and higher profits for US companies. However, it has also come with costs, particularly the loss of jobs in America due to import competition, automation, and multinational companies moving production overseas.
After President Donald Trump initiated what is called a trade war with China in 2018, economic tensions between Washington and Beijing escalated. Chinese officials have warned that "there are no winners" in a trade war or tariffs, although President Joe Biden has continued many of Trump's policies.