New Delhi, March 12: Bilateral trade between the United States and China has decreased to just 2% of global trade, down from 2.7% in 2024, according to a report released on Thursday.
The latest DHL Global Connectedness Report 2026 indicates that despite strong overall globalization, the separation between the world’s two largest economies continues.
The study, conducted in partnership with New York University’s Stern School of Business, reveals that geopolitical tensions, tariffs, and uncertainty in international trade policies have not significantly weakened global economic ties.
In 2015, trade between the US and China reached its peak at 3.6% of global trade. However, this share has consistently declined in recent years, dropping to 2.7% in 2024 and nearly 2% in the first three quarters of 2025.
Cross-border business investment between the two countries is even lower, accounting for less than 1% of global investment flows.
Despite the weakening relationship between Washington and Beijing, the report states that globalization remains stable overall.
Global connectedness stood at approximately 25% in 2025, matching the record levels seen in 2022. This index measures the international flow of trade, capital, information, and people on a scale from 0 to 100.
DHL Express CEO John Pearson noted that these findings demonstrate that countries and companies can maintain international relationships even in uncertain times. He emphasized the need for collaboration and global thinking to tackle major challenges like poverty and climate change.
The report also found that, excluding the unusual fluctuations during the COVID-19 pandemic, global trade growth in 2025 was more intense than in any year since 2017.
Most of this growth was driven by increased shipments before tariff hikes in the US and rising demand for AI-related products. According to the World Trade Organization, AI-related goods contributed nearly 42% to global merchandise trade growth during the first three quarters of 2025.
The report estimates that global trade expansion will continue, although the pace will moderate. Merchandise trade is projected to grow at an average annual rate of 2.6% until 2029, aligning with growth rates from the previous decade.
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My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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