Turning point for U.S.-China ties in 2026?

This report is from this week’s CNBC’s The China Connection newsletter, which brings you insights and analysis on what’s driving the world’s second-largest economy. You can subscribe here.

This year, he’s back for a fifth term as chairman of the American Chamber of Commerce in China, whose members include Boeing and Cargill. His first stint came in 2007 and 2008, when Beijing hosted its first Olympic Games, and the financial crisis hit much of the world. He later served again in 2015 and 2016, as populist movements rose globally and gave Donald Trump his first term as U.S. President.

Fast forward a decade, and U.S. businesses have endured everything from the pandemic to escalating tariffs. But the past decade of what Zimmerman calls “experimenting with competition” could now give way to something new, with Trump expected to visit China in April.

Here are the highlights of our conversation, with responses condensed for clarity:

Why are you staying engaged at such a high level, after nearly 30 years in China?

The reason I’m involved is because I think this is a very important year.

2026 is important, not just because [it’s] the 250th anniversary of the U.S., but the U.S. and China have had 10 years of experimenting with competition, experimenting with calls for decoupling and de-risking.

Has that worked? Not really. So it’s now time to go back and, in a way that may be visionary, to get us back on track to have ongoing dialogues, ongoing engagement, because I think, at the end of the day, that will be in the best interest of the U.S. and China.

Are many U.S. companies decoupling from China?

No. We’re seeing an evolution. People are starting to adjust. For many sectors, China continues to be a critical market. But it’s also an essential part of the global supply chain.

American companies are adjusting to this new normal within the U.S.-China relationship. But there has been some diversifying, and that’s a healthy strategy that companies are looking at, but we are not seeing wholesale decoupling at all.

It’s important that we have senior–level meetings that bring some clarity, some certainty, some continuity to the relationship.

Dialogue matters — even the smallest, positive signals, at the presidential level, on engagement are very, very important. Regular, ongoing engagement helps reduce any potential misunderstandings and lowers the risk of unexpected policy shocks, like the back-and-forth over tariffs.

What kind of opportunity do U.S. businesses have in China as domestic competition rises?

We have our white paper, which, in a way, allows us to engage with the Chinese government to seek changes that are…