Chi­nese in­vest­ments ben­e­fit US

China Daily (Hong Kong) - - COMMENT - — BEI­JING NEWS

The mo­men­tum of China-US eco­nomic and trade ties is un­likely to be re­versed de­spite the dif­fi­cul­ties Don­ald Trump’s elec­tion as US pres­i­dent have added. As a mat­ter of fact, Trump’s elec­tion also leaves a big space for the US’ eco­nomic and trade co­op­er­a­tion with China, given that his stress on boost­ing man­u­fac­tur­ing in the United States of­fers in­creased op­por­tu­ni­ties for Chi­nese en­ter­prises to in­vest in the US.

China’s over­seas in­vest­ment is ex­pected to be some­where be­tween $250 bil­lion and $300 bil­lion by the end of the 13th FiveYear Plan (2016-20) pe­riod, which will ex­ceed that of the US if the lat­ter’s cur­rent over­seas in­vest­ment level re­mains un­changed in the years ahead.

De­spite the nu­mer­ous dif­fi­cul­ties they face, Chi­nese en­ter­prises’ in­vest­ment in the US has con­sid­er­ably in­creased, as in­di­cated by a 173 per­cent rise year-on-year in the first 10 months of this year.

For any Chi­nese en­ter­prises pre­par­ing or plan­ning to in­vest in the US, they should bear in mind that any in­vest­ment should be on a win-win ba­sis rather than the pur­suit of uni­lat­eral ben­e­fit. And they must do their home­work to en­sure their in­vest­ment ac­tiv­i­ties are car­ried out in ac­cor­dance with lo­cal laws and reg­u­la­tions. Both gov­ern­ments should re­duce their po­lit­i­cal in­ter­ven­tions.

Some sen­sa­tional re­marks made by Trump, such as his threat to with­draw the US from the World Trade Or­ga­ni­za­tion and take pro­tec­tion­ist moves, have added more un­cer­tain­ties to world trade. But any­one in the White House should know that the WTO and lib­er­al­ized trade have ben­e­fited the US no less than the rest of the world.

There is lit­tle pos­si­bil­ity of the US with­draw­ing from the WTO, given that leav­ing it would in­volve com­pli­cated pro­ce­dures and would re­quire the ap­proval of two-thirds of the US Congress.

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