Chinese investments benefit US
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.