The United States (US)-China trade war, which formally escalated in 2018, has largely been interpreted through the narrow lens of zero-sum competition, focusing on punitive tariffs, trade deficits, and retaliatory economic measures. Such a perspective emphasizes conflict over cooperation and overlooks the structural economic complementarities between the two global powers. This paper advocates for a more comprehensive and strategic reinterpretation of the US-China economic relationship by adopting a national competitiveness perspective. Specifically, we utilize the Institute for Industrial Policy Studies (IPS) Model alongside the Weight-Sequence (W- S) Model to provide a multidimensional analysis of how both nations can achieve sustainable, mutually beneficial outcomes. The IPS Model offers a holistic framework to assess competitiveness at the national level. Meanwhile, the W-S Model explains how countries dynamically adjust their strategic emphasis between cost leadership and differentiation strategies across development stages. To substantiate our theoretical framework, this study examines three emblematic US firms that have successfully operated within the Chinese market: Apple, Walmart, and Tesla. Apple’s success illustrates how global differentiation?through branding, technological excellence, and product design?thrives by leveraging China’s cost-efficient manufacturing ecosystem. Walmart’s operations demonstrate how large-scale retail enterprises can benefit from sourcing efficiencies in China while introducing advanced retail management techniques. Tesla’s Gigafactory in Shanghai provides a compelling example of how American innovation and Chinese manufacturing scale can be synergistically combined to accelerate market penetration and technological diffusion. The analysis reveals a crucial insight: while the US possesses competitive advantages rooted in innovation, branding, and high-value differentiation, China maintains strengths in large-scale production, cost efficiency, and supply chain integration. Rather than perpetuating adversarial economic policies, both nations can enhance their national competitiveness by recognizing and strategically capitalizing on these complementary strengths. This approach fosters a win-win scenario, emphasizing cooperation over conflict and promoting long-term global economic stability.