This study investigates the impact of the 2018 US-China trade war on China's economy and its pursuit of carbon neutrality. Amid trade tensions, China's 2020 pledge for carbon neutrality emerged as a strategic response to external economic pressures. By using SPSS and the Environmental Kuznets Curve model, this research quantitatively explores how economic growth correlates with environmental health. It examines how the trade war influenced China's industrial and technological advancements, inadvertently fostering emissions reduction and enhancing environmental awareness. The findings reveal that these adjustments not only mitigated short-term economic challenges but also prompted shifts in employment and heightened public consciousness about environmental issues. This analysis contributes to understanding the intricate balance between trade, economic growth, and environmental sustainability, offering policy recommendations to harmonize these elements globally.