Principled agreement between China, U.S. marks significant step forward: UK business leader

The principled agreement reached between China and the United States during recent talks in London represents a significant move in the right direction, said John McLean, Chairman of the China-UK Business Development Centre, who also expressed strong confidence in the resilience of the Chinese economy.

McLean made the remarks in an interview on the sidelines of the three-day 2025 Beijing CBD Forum, which opened on Wednesday with the goal of further strengthening China's connection with the global community.

The first meeting of the China-U.S. economic and trade consultation mechanism was held in London from Monday to Tuesday.

The two sides held candid and in-depth talks and thoroughly exchanged views on economic and trade issues of mutual concern.

An agreement in principle was reached on implementing the important consensus made between the two heads of state during their phone call on June 5 and the framework of measures to consolidate the outcomes of the economic and trade talks in Geneva, and new progress was forged in addressing each other's economic and trade concerns.

McLean lauded the agreement, stressing that businesses around the world hope for more stable relations between the world's two largest economies.

"This is good, very good for the world, very good for trade. Because we are in the sea of uncertainty. If we can reduce the uncertainty, I don't think we can ever get back to a level playing field because of the turmoil that happened, and also don't forget this is just China and the U.S. There are a number of other countries which actually have to find an accord, and the 10 percent tariff is in existence today. So, it is a significant step in the right direction," he said.

With over two decades of business experience in China, McLean expressed confidence in the country's ability to navigate the economic uncertainties.

"I've been trading in China for something like 26 years. Probably not quite, but each year I read in the paper: 'Chinese growth under challenge. Can they do 10 percent? Can they do 8 percent? Can they do 6 percent? Can they do 5 percent?' But the levers that China has in terms of managing its economy, I would say, I have trust in them to be able to actually pull those levers, because they demonstrated over the last 20 odd years that they can do it. I'm not saying it is going to be easy. And when you see what's actually happened, here in terms of their technological advances and their green energy advances, you have to think they have the capability in the know-how," he said.

Principled agreement between China, U.S. marks significant step forward: UK business leader

U.S. consumer sentiment fell 6 percent in March to its lowest level in three months, as rising gas prices and volatile financial markets, driven by the Iran conflict, weighed on households, according to a University of Michigan survey released Friday.

The index dropped to 53.3 in March from 56.6 in February, below last March's reading of 57.0. The decline continues a slide since January and raises concerns about household spending, a key driver of U.S. growth.

The Current Economic Conditions Index slipped to 55.8, down from 56.6 in February and well below 63.8 a year earlier. The Index of Consumer Expectations fell to 51.7, compared with 56.6 in February and 52.6 last March.

The survey found that year-ahead gas price expectations surged about fivefold from February, reaching their highest level since June 2022. Expectations for personal finances fell 10 percent, with 47 percent of respondents saying rising prices are placing a heavy burden on their household budgets.

Short-term economic outlook expectations plunged 14 percent, and 61 percent of consumers now expect unemployment to rise in the year ahead, up from 58 percent last month. Year-ahead inflation expectations climbed from 3.4 percent in February to 3.8 percent in March, the largest one-month increase since April 2025.

Although long-term expectations saw only modest declines, survey director Joanne Hsu cautioned that "these views could shift if the Iran conflict becomes protracted or if higher energy prices feed broader inflation."

On Feb. 28, Israel and the United States launched joint attacks on Tehran and several other Iranian cities, prompting Iranian retaliatory strikes in the days that followed. The conflict has rattled global energy markets, fueling concerns about supply disruptions and higher oil prices.

Economists said sustained energy shocks could deepen inflationary pressures and further erode consumer confidence.

US consumer sentiment falls to three-month low amid gas price surge, market volatility