Chinese and US experts from think tanks and political circles stressed the importance of more investment in each other while discussing the approaches to enhance mutually beneficial cooperation at a dialogue held in Manhattan on Wednesday.
The High-level Dialogue on US-China Economic Relations, hosted by the New York City-based Asia Society Policy Institute and the China Center for International Economic Exchanges, attracted broad public attention.
“Relations between the two countries would get closer every time they tackle a global challenge together,” said Chee-hwa Tung, vice chairman of the Chinese People’s Political Consultative Conference (CPPCC) National Committee.
Chinese President Xi Jinping’s meeting with his US counterpart Donald Trump at Mar-a-Lago resort in this April indicated a positive start and good sign, Tung noted, saying that it implies the possibility for a constructive relationship between the two countries.
Cui Tiankai, Chinese Ambassador to the US, said that China is not working for the transition of global dominance from one country to another.
China aims to, along with the US, build a new type of mutually beneficial partnership that meets challenges together and a new community of shared interests, the ambassador explained.
China-US cooperation is of vital importance for the current global challenges, said Michael Bloomberg, founder of Bloomberg and former mayor of New York, adding that China’s growth has spurred US economy, and the country’s policy to further open its market for international investors is also inspiring.
In fact, the 100-day action plan agreed during the April meeting at Mar-a-Lago resort has reaped its early fruits, and will play a crucial part in propelling China-US trade ties in the new era.
In addition, China’s investment in the US has made remarkable progress. With the emphasis on innovation, Chinese enterprises in the US have increased their research input in recent years, which promoted industrial upgrade of the US.
Many Chinese enterprises have created a great number of jobs in the US, and they have vast space for development in the field of infrastructure,” said Stephen Orlins, president of the National Committee on US-China Relations.
US business community has shown great interests in participating the Belt and Road construction. “Many representatives of the US top enterprises made inquiries about participation at the dialogue,” Tom Nagorski, executive vice president of the Asia Society, told People’s Daily.
Trade deficits of the US have not decreased its jobs, remarked Zhang Yuyan, director of the Institute of World Economics and Politics under Chinese Academy of Social Sciences.
He pointed out that the number of workers in manufacturing sector in the US was 12 million in 2010, and the figure increased to 12.3 million in 2015. It indicated a negative correlation between unemployment and trade deficits, which means low unemployment comes with high trade deficits.
According to a report by the US Department of Commerce, the country’s job losses had already begun before the commencement of North America Free Trade Agreement and China’s entrance to the WTO.
Interests surplus does exist in the US, though China has a trade surplus in the global value chain, said a recent report on the study of economic and trade ties between the two countries issued by China’s Ministry of Commerce.
A survey conducted by a third-party organization showed that to assemble an iPhone 7 in China would only take $5.96 out of the $237.45 total cost, while the starting price of the phone is $649 in the US market.
Policies aimed at narrowing trade deficits will definitely lower US employment and lead to loss for both sides, Zhang commented.
Experts attending the dialogue stressed the importance of increasing investment, believing two-way investment between China and the US is far behind that between Europe and the US which stands at a level of trillions of dollars.
The representatives from both sides suggested that the two countries finalize the negotiations on Bilateral Investment Treaty and start the broader Bilateral Investment and Trade Treaty at a proper time, in a bid to enhance bilateral cooperation on high-tech products and service sector.
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