Home>Top Issues

Good outlook for bilateral trade

Sunday,Jul 30, 2017

From: China Daily


Analysts from a leading Chinese think tank said they were optimistic about the prospects for China-US trade and investment, calling for a restart to negotiations on a bilateral investment treaty and for the promotion of cooperation in fields such as services trade and energy."We are optimistic about the prospects as Chinese entrepreneurs are optimistic about economic growth in the United States, which creates a huge potential for investment in the US," said Lu Jinyong, director of the China Center for Investment Promotion.

Lu spoke at a symposium on the China-US Comprehensive Economic Dialogue, hosted by the Center for China and Globalization (CCG)on Tuesday. The center is one of China’s top privately funded think tanks.

According to the Foreign Ministry, the dialogue focused on macroeconomic policies, trade and investment, and global governance, while seeking to expand cooperation and tackle differences.

CCG Director Wang Huiyao said China wanted fair treatment for Chinese companies investing in the US and more relaxed export controls, while the US wanted balanced trade.

The US is seeking wider opening-up by China to cut the trade deficit, due to growing interdependence between the two countries, Lu said. Data showed investment Chinese businesses have made in the US had surpassed those from the world’s largest economy.

Bilateral investment hit a new record high of $60 billion last year with $45.6 billion coming from China, according to a report jointly released by the CCG and the US-based Rhodium Group last month. China had a trade surplus of around $250 billion with the US last year.

Lyu Xiang, a researcher on US studies at the Chinese Academy of Social Sciences, said China’s trade surplus partly stems from different positions in the current global supply chain.

"Taking the iPhone as example, more than half of its components are purchased around the globe and then assembled in China, but Apple Inc takes half of the net profits," Lyu said. "So the US has to look at the deficit from an objective angle."

Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said China and the US have increasingly shared interests.

China and the US should restart negotiations on a bilateral investment treaty, he said. BIT negotiations were initiated in 2008 and both countries agreed to exchange the second round of negative lists last June.

He Weiwen, a senior researcher at the CCG, said the treaty is in line with the economic interests of the US as the business community in the US has strongly called for such an agreement.

CCG’s Wang Huiyao said both countries can also cooperate in infrastructure and energy. US President Donald Trump has an ambitious plan to rebuild the infrastructure system as an important way to boost manufacturing and employment.

Chinese companies have been known for their cost-efficiency and efficiency in building highways, railways and ports. For example, CRRC Corporation Limited has bid for subway projects in Boston and Chicago, Wang said.

"Infrastructural cooperation can help achieve more balanced economic ties between the two countries," Wang added.


From China Daily,2017-7-28


  • 2018 World Chinese Economic Summit Roundtable

    The summit aimed to strengthen ties between China, Europe, and Southeast Asia, in particular how to deepen existing economic relations under the BRI. This includes exploring how governments and businesses can develop new BRI projects; how to promote UK business cooperation in ASEAN; how China and the UK can collaborate to develop infrastructure in Small Island Developing States (SIDS); and how the UK, China, ASEAN and the Commonwealth can work together to promote entrepreneurship and sustainable development.

  • Trade, Connectivity Take Centre Stage at “Belt and Road” Forum

    The planned projects under the Belt and Road Initiative (BRI) would together span the distance from the eastern part of China until Belgium in the northwest corners of Europe and Spain further south. The initiative is also known as the Silk Road Economic Belt and the Maritime Silk Road, evoking the image of the transcontinental routes that were used for trading silk, horses, and a host of other products some millennia ago.

  • “Sea Turtles” Come Home

    Heading From: CGTN   【VIDEO WATCHING】 China had become the world’s largest source of overseas students, and the naiton also sees the increasing numbers of the returning home. According to Annual Report on the Development of Chinese Students Studying Abroad (2016) No.5,…

  • CGTN | How can China attract the best from around the world?

    Wang Huiyao, founder of the Center for China and Globalization (CCG) and counselor of China’s State Council, spoke to CGTN about the country’s competitiveness and how they can attract talented people from around the globe.

  • China, Germany to Harmonize Positions at G20

    China and Germany, countries which are called beneficiaries of globalization by experts, could find common ground at the upcoming G20 Summit in Hamburg.