China launched reform and opening-up in 1978, and established diplomatic relations with the United States one year later. Since then economic and trade ties between the two sides have deepened and facilitated China’s remarkable economic growth. But the US has been the largest overseas beneficiary of China’s growth bonus.
China’s growth and its cooperation with the US are important external factors fostering the US’ macroeconomic performance, with China’s massive market demand helping US companies earn huge profits, and sharpen their international competitiveness.
Also, China’s fast-paced economic growth has boosted the recovery of the US and world economies after the global financial crisis, which was triggered by the subprime mortgage crisis in the US in 2008. According to the International Monetary Fund, China contributed 43.2 percent (calculated in market exchange rate), or 28.6 percent (calculated in purchasing power parity) to global GDP growth from 2010 to 2017.