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Sino-US Economic and Trade: Win-win Cooperation is The Right Way

Sino-US Economic and Trade: Win-win Cooperation is The Right Way

Recently, President Trump of the United States met with members of the Political Bureau of the Central Committee of the Communist Party of China, the vice-premier of the State Council, and the Chinese-led Chinese leader, Liu He. After a two-day consultative meeting, the two sides engaged in a frank, efficient and constructive discussion on the economic and trade issues of common concern. In the end, China and the United States have made substantial progress in agriculture, intellectual property, exchange rate, financial services, trade cooperation, technology transfer and dispute settlement.

Trade frictions between China and the United States have lasted for more than a year, and this time, 13 rounds of high-level consultations have been held. This consultation has made substantial progress in many fields, which should be said to be an important breakthrough. The two sides go hand in hand and negotiate on the basis of equality and mutual respect, which is conducive to promoting the healthy and stable development of economic and trade relations between the two countries.

Sino-US Economic and Trade: Win-win Cooperation is The Right Way

According to the Chinese side, the two sides discussed the arrangements for follow-up consultations and agreed to work together towards a final agreement, while US President Donald Trump directly described the current progress as “the United States and China are ‘very close to’ ending the trade war.” The consensus between the two expressions is that China and the United States are working hand in hand to accumulate mutual trust through pragmatic cooperation, step by step, gradually forming a positive cycle, and finally achieving a complete settlement of current differences.

Some experts have pointed out: “Sino-US economic and trade cooperation is beneficial, while fighting hurts both.”We all know that the Sino-US economic and trade relations have been the ballast stone and the stabilizer of the relationship between China and the United States. Since the establishment of diplomatic relations in 1979, the bilateral relations have developed comprehensively and the economic and trade cooperation has been rapidly promoted, and the complementary advantages and the interests of the two countries have been formed. The trade pattern of mutual benefit and mutual benefit. Sino-US economic and trade relations are mutually beneficial and win-win, and the common interests are far greater than the differences. The economic and trade relations between China and the United States can not be stably developed, not only to the interests of both China and the United States, but also to the development of the world.

First of all, China and the United States are important trading partners in goods. The United States is China’s largest export market and the sixth largest importer of goods, accounting for 19 percent of China’s total exports. Bilateral goods trade between China and the United States reached 583.7 billion US dollars in 2017, 23 3 times as much as when the two countries established diplomatic relations in 1979. The United States is China’s second largest service trading partner and China is the second largest service export market in the United States. In addition, China and the United States are the largest developing and developed countries, with different resource endowment, development stage, industrial structure and international division of labor. Although the competition in bilateral economic and trade relations is on the rise, it is mainly complementary. The basic pattern has not changed.

Sino-US Economic and Trade: Win-win Cooperation is The Right Way

In recent years, with the rapid development of Sino-US economic and trade relations, bilateral trade frictions are also showing a growing trend. Trade imbalance, textile special protection, anti-dumping against China and other issues constitute the main content of Sino-US trade friction. The competition for economic interests between China and the United States, the return of domestic trade protectionism in the United States and the strategic containment of the United States against China are the main reasons for the increasing bilateral trade frictions. Trade friction has had a great negative impact on the development of Sino-US economic and trade relations. The trade friction between China and the United States is mainly microeconomic friction, but it will also be extended to other fields. The RMB exchange rate problem in 2003 is already a macro economy. Save friction, and it continues to this day. Just as China’s accession to the WTO has not reduced trade frictions between China and the United States, it is difficult to guarantee that China will not face more or less restrictions. Future trade between China and the United States may expand to include labor standards, subsidies, health inspection standards, safety issues, trade inequality, investment and trade-related institutional arrangements, and so on.

We are happy to see the substantial progress made by the two sides after many rounds of high-level consultations. We also hope that the Sino-US trade war, which has been going on for more than a year, will come to an end as soon as possible, and that after the struggle, we can find a new balance and restore the world trade order to normal.

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