What the Chinese-US trade talks covered
THE world was watching when China and the United States held economic and trade consultations in Beijing last Thursday and Friday.
What signals have the talks sent? What did the two sides discuss?
Stable economic and trade ties between the world’s two biggest economies benefit not only themselves, but also the greater global economy.
During the talks, the two sides agreed that a sound and stable China-US trade relationship is crucial for both, and they are committed to resolving relevant economic and trade issues through dialogue and consultation. They exchanged views on issues including increasing US exports to China, bilateral service trade, two-way investment, protection of intellectual property rights, as well as resolving tariff and non-tariff issues, reaching consensus in some areas.
“It was a good time to reduce China-US trade frictions,” said Song Guoyou, deputy director of Fudan University center for American studies.
The meetings showed both sides willing to address economic and trade issues and narrow their disagreements through dialogue, Song said.
By proposing a trip to China for consultations, the US side demonstrated the importance it attaches to Sino-American trade and economic issues, and its sincerity for addressing them.
China and the US can tackle trade frictions “in a rational, prudent manner,” said Zhao Longyue, a professor at Guangdong University of Foreign Studies. “From the view of long-term development, win-win cooperation is the fundamental way to resolve these kinds of issues.”
Wang Yong, a professor with Peking University’s school of international studies, said: “China and the United States are natural partners. Their economies are strongly complementary.”
For example, more US exports to China creates opportunities for American firms and products, while meeting the demands of Chinese consumers with better incomes for greater quality of life, Wang said.
ZTE case highlighted
Talks like these, while candid and pragmatic, necessarily involve disagreements and bargaining.
The Chinese side vigorously struck back at what they described as unsubstantiated accusations on issues including IPR and the unreasonable demand that it is up to China to reduce the US trade deficit, sources close to the talks said.
China lodged representations with the US concerning the ZTE case during the consultations, China’s Ministry of Commerce said on Friday. The US side said they attach importance to China’s representations and will report China’s stance to US President Donald Trump.
Li Yong of the China Association of International Trade said that if agreement could be reached on the ZTE case, it would set an example for further high-tech cooperation between Chinese and American enterprises.
“In this age of globalization, frictions are not solved by crippling others, a negative mindset, through coercion or by unilateral thinking,” said Li.
Tu Xinquan, a professor with the University of International Business and Economics in Beijing, said all negotiations need to be egalitarian. Equality, frankness, rationality and pragmatism are prerequisite to future consultations, he said.
Both sides recognized that given that considerable differences still exist on some issues, continued hard work is required for more progress.
Dong Yan with the Chinese Academy of Social Sciences believes structural problems in the China-US economic and trade relationship are unavoidable, judging from the perspectives of history and international relations.
“It’s normal to have disparity and even friction, but these factors should not be allowed to set the direction of China-US cooperation,” Dong said.
Zhao of Guangdong University of Foreign Studies said China and America need to take a longterm view from the perspective of development. Instead of being burdened by trade deficits, both sides can exploit their respective advantages in different sectors in an active and cooperative manner, realizing resource complementarity, common development, mutual benefit and win-win results, he suggested.
“We must not imagine one brief consultation will solve all our problems. Apart from sincerity, both sides need to show patience, and respect the policy environment of each other,” said Li of the China Association of International Trade.
Both sides need frank, rational and pragmatic exchanges to seek common ground, put their disagreements aside, maximize their converging interests, and be responsible to their people and the world at large, Li added.