[International Sharp Review] The first US dollar is the trade friction and the brakes. Mutual benefit and win-win must still be opposite.

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[International Sharp Review] The first US dollar is the trade friction and the brakes. Mutual benefit and win-win must still be opposite.

2018-12-02 20:25:05 55 ℃

The Sino-US economic and trade friction that lasted for more than eight months finally ushered in an important turning point at the end of the year.

On December 1, Chinese President Xi Jinping, who attended the G20 Argentina Summit, met with US President Trump. This is the first meeting between the two heads of state since the Sino-US economic and trade frictions escalated in March this year. The two sides discussed the Sino-US economic and trade issues and reached a consensus. They decided to stop upgrading trade restrictions such as tariffs and immediately resolved their concerns. They instructed the economic and trade teams of the two sides to intensify consultations, reach an agreement, cancel tariffs imposed this year, and promote bilateral economic and trade relations. Return to the normal track as soon as possible to achieve a win-win situation.

In the face of further escalation of Sino-US trade friction, China and the United States have jointly stepped on the brakes, reflecting the willingness to move in the opposite direction and resolve dialogue. At the same time, it also reflects China’s principled stance of firmly safeguarding the core interests of the country and the fundamental interests of the people, as well as the principles of mutual respect, equality and mutual benefit.

At the APEC summit in Papua New Guinea, which was closed not long ago, President Xi Jinping pointed out that "no matter whether it is a cold war, a hot war or a trade war, there will be no real winners." The negative impact of Sino-US trade frictions over the past eight months has fully verified this judgment: not only have China and the United States paid a certain price, but the growth rate of global trade in goods may also fall by 0.3% this year, the International Monetary Fund recently The global economic growth forecast for this year and next will be lowered from 3.9% in April to 3.7%. The New York Times said that the price of trade wars on financial markets and the broader economy is "increasingly anxious."

In this context, President Xi Jinping and President Trump made two calls in May and November and met in December. The communication between the heads of state played a key role in promoting dialogue and resolution of Sino-US economic and trade issues.

"Communication is common, and each phase is closed." Today, when the economy is highly globalized, China and the United States will stop upgrading trade wars and even stop wars. This is undoubtedly a huge benefit for enterprises and people in the two countries and the world. It is noted that at the first China International Import Expo held not long ago, about 180 companies from the United States participated in the exhibition. This number is only one-third of that of Japanese companies. The main reason is that Sino-US trade frictions affect US exports to China.

According to the consensus reached at the first meeting of the US dollar, China will further expand its imports from the US in the fields of agriculture, energy, manufactured goods and services in accordance with domestic demand to better meet China. The people’s growing needs for a better life and the promotion of high-quality economic development. In these areas, China and the United States have strong complementarities, and increasing imports from the United States is conducive to the development of bilateral trade in a more balanced direction. At present, China has formed the world's largest middle-income group, including high-quality imported agricultural products such as oranges, soybeans, pistachios, red wine and beef in the United States, which is very popular among Chinese consumers. In terms of energy, China's annual output of crude oil and natural gas in 2016 was 200 million tons and 138.39 billion cubic meters respectively, but the annual consumption was as high as 580 million tons and 210.34 billion cubic meters. The contradiction between supply and demand was prominent. The United States is a major oil and gas producer in the world. Increasing imports from the United States is conducive to China's diversified energy import channels and ensuring that people enjoy a green and low-carbon life. This is undoubtedly a win-win outcome.

At the first China International Import Expo, President Xi Jinping announced that China will further reduce tariffs and relax restrictions on foreign investment in education and medical care. In the next 15 years, it is expected that imports and services will exceed 300,000 respectively. Billions of dollars and 10 trillion dollars, etc. These measures will bring more opportunities to investors and suppliers from all over the United States.

Of course, the big cake for China’s import market, how much the United States can eat, depends on the attitude and ability of the United States. On the one hand, the Chinese market pays attention to honesty and fair competition. It is not rewarded by economic intimidation and extreme pressure. On the other hand, China's expansion of market access is not only for the United States but for the world. American products and services can only gain a share in the Chinese market if they are recognized by Chinese consumers. At the same time, according to the latest consensus reached by the Chinese dollar, the US will also actively resolve China's economic and trade concerns, such as restoring China's self-produced cooked poultry to the United States and maintaining Chinese squid exports to the United States.

"Whether the future is sunny or rainy, cooperation and mutual benefit are the only correct choices." This is the judgment made by President Xi Jinping at the G20 Argentina Summit. It is also the handling of trade friction between China and the United States. There should be attitudes and follow-ups when problems arise.

According to the consensus reached by the Chinese dollar, the economic and trade teams of both sides will start a new round of consultations as soon as possible. China will, as always, proceed from the overall interests of safeguarding the common interests of the two countries and the world trade order, and propose pragmatic solutions. At the same time, China also knows that the Sino-US economic and trade frictions are complicated. It is impossible to expect that all problems can be solved through several consultations, and it is not even ruled out that there will be repetitions in the middle. Therefore, the Chinese side will continue to adapt to all kinds of wind and rain with its constant pace, stepping on its own rhythm, and doing its own thing calmly. Because China is confident: the Chinese economy is such a sea, what kind of squally showers can't be overturned! (International critical commentator)

Editor: Wang Hao