Based on the steady growth of bilateral investment, future Sino-US trade cooperation will expand to include the rule making of the global economy, said Li Xiangyang, director of the National Institution of International Strategy at the Chinese Academy of Social Sciences.
A prominent feature of the initial period of Sino-US economic and trade cooperation was that the two sides expanded to gain a greater share of each others’ market, Li wrote in an article published in the People’s Daily on Tuesday.
This bilateral cooperation deepens in the 21st century, with an evident tendency of vertical division of labor. Meanwhile, mutual investment, finance cooperation and policy coordination became new fields of cooperation between the two sides.
“Made in China” and “Consumption in the US” emerged as the double engines in driving the economy growth of the two nations as well as of the world over the past 10 years before the 2008 international financial crisis.
After the start of the crisis, the US government introduced a massive financial bailout and quantitative easing policy, while the Chinese government detailed a 4-trillion yuan stimulus package. The cooperation in economic rescue prevented the financial crisis from turning into a global economic depression. The positive effect of the large-scale bailout policy could not be neglected although it has also caused severe negative side-effects, Li said.
To boost the rebalancing and sustainable development of global economy, the necessity of coordinating the macro-economy policies between big countries has become more evident in the post-crisis era.
The US economy made progress through de-leveraging and the recurrence of American manufacturing, while the Chinese economy benefited from expanding domestic demand, eliminating excess capacity and transforming economic development mode.
In regional cooperation, the two sides are likely to speed up the development of Free Trade Area for the Asia-Pacific (FTAAP), which will benefit the bilateral trade, Asia-pacific economic integration and global trade liberalization.
The US is advancing Trans-Pacific Partnership negotiations while China is promoting the Belt and Road initiative, establishing the Asian Infrastructure Investment Bank and boosting comprehensive regional economic partnership negotiations. It is a complementary rather than a competitive relationship between the two countries that is boosting the Asia-Pacific regional economic integration.
Li said that the reform of the international economic order should comply with the appeals from majority countries rather than just China. In recent years, the US has been paying more attention on confrontation with China, and misinterpreted the reform suggestions proposed by China as challenging the US-dominated international economic order. In fact, the global economic order and rules are the core of economic globalization, and it could hamper the process of economic globalization if it fails to reflect the interest of most countries. (The Daily Mail – People’s Daily news exchange item)
Sep 25, 2016 0
Sep 25, 2016 0
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