1、1China and the U.S.Should Pull Together,Not Rock the BoatEqual treatment for Chinese enterprises in the U.S. was an agenda item in thesecond round of the China-U.S. Strategic and Economic Dialogue (S one of the exhibitors was WanxiangAmerica Inc.,a major manufacturer ol automotive parts and consider
2、ed one ofthe most successful Chinese multinationals in the U.S., where it has 28 subsidiarycompanies and a 2010 sales volume in excess of US $2 billion. Through the first and second rounds of the dialogue, both China and the U.S.have made great efforts to enhance bilateral relations and reach some c
3、ommonunderstanding. Before the third round of the dialogue China Today called on JiaXiudongs deep 2understanding of China-U.S. relations. Jia was an invited researchfellow of the China Institute of International Studies (CIIS) and Ibcused on international strategy and China-U.S. relations. He also w
4、orked in the Chinese embassy inthe U.S.for many years, and in 2009 was involved in preparatory work for the firstround 01 the $&ED in Washington DC. China Today: On July 27, 2009,the first round of the S&ED was held inWashington, D.C. against the backdropof a common battle with the internationel fin
5、ancial crisis. From todays perspective, how do you see the dialogues rolein promoting economic recovery? Jia Xiudong: As globalization goesdeeper and deeper, the degree of interdependence between countries hasgrown, as has the need to work togetherfor the common good. While the globalfinancial crisi
6、s has posed a seriouschallenge to the world economy, theinternational community has adopted avariety of economic stimulus plans, eachmaking its due contribution to the easing of the crisis and driving economicrecovery. The first round of the S&ED was heldunder just such circumstances. The twogiants,
7、 China and the U.S., discussedmajor bilateral issues facing the economy, finance, and safeguards to trade stability. The dialogue also 3complementedmultilateral negotiating bodies such asthe G20 Summit. The Obama administration had justtaken over so the dialogue was a usefulplatform to explore the b
8、asis of eachcountrys policies for dealing with thefinancial crisis. The platform has playeda positive role in promoting cooperationduring the financial crisis and furtherdeveloping bilateral relations. China Today: Since PresidentObama took office China-U.S. relationshave experienced ups and downs.
9、How doyou think the relationship stands today? Jia Xiudong: Ups and downs in ourrelations are perfectly normal. It was thesame under George Bush. China-U.S. re lations got off to a good start in the earlydays of this administration and uninterrupted contact has been maintained. However, there are so
10、me persistentissues below the surface-the same oldproblems of arms sales to Taiwan, andtrade disputes. And these have been ofcourse joined by new ones like Googlesdeparture from the mainland. But as President Hu Jintao said during his visit to the U.S., China-U.S.ties should be cooperative, not a ze
11、rosum game. The China-U.S. Joint Statement released in January this year alsopointed out that the two countries areactively cooperating 4on a wide range ofsecurity, economic, social, energy andenvironmental issues. From a globalperspective, we can see the great significance of China and the U.S. bui
12、ldingcooperation partnership. China Today: President Hu Jintaomade a state visit to the U.S., which haslaid down a foundation for the thirdround of the S&ED. What impact didthe visit make in your view? Jia Xiudong: It was very good timing. This year sees the 4oth anniversaryof the establishment of d
13、iplomatic relations between us, the middle of Obamaspresidency, and the beginning of Chinas12th Five-year Plan period (2011-2015).The visit set the direction for the tiesbetween the U.S., the worlds biggestdeveloped country, and a burgeoningChina. The two sides will make joint efforts to build mutua
14、l respect, create mutual benefits and a win-win partnership.This already reflects the fruitfulness ofwillingness to cooperate. China Today: Chinas GDP in 2010tvas valued at nearly RMB 40 trillion,roughlg 40 percent of that of the U.S.Currently China holds huge U.& dollardenominated assets, an indica
15、tion thatthe two nations“ economies are bound together, but if the U.S. dollar weakens thedecline will result in a loss of wealth forChina. How do you view this problem? 5Jia Xiudong: As the second-largesteconomy in the world China is increasingly integrated into the global economy. During the proce
16、ss of globalization, countries will certainly affect oneanother. Economic or political disasterin a big country will surely trigger problems for other countries. Look at howthe Wall Street crisis affected Chinaseconomy. It is precisely because policies adoptedby one country might affect other countr
17、ies that the economic stimulus plans todeal with the financial crisis were decidedafter discussions among the G2o countries. Therefore, when the United Statesmakes decisions on its monetary policy, itshould consider how such a policy mightaffect other countries. Globalization has thickened the inter
18、connectedness of the Chinese andAmerican economies and that interdependence is unlikely to go away: SinoAmerican economic relations have neverbeen as close as they are today. Eachcountry is the others second-largesttrade partner: just after diplomatic relations were established in 1979 the trade vol
19、ume amounted to US $2.5 billion,and it has now increased 1.50-fold toreach US $385 billion. Moreover, Chinahas been the U.S.s fastest growing export market for nine years running. Thefigures show that the two sides shouldpull together, not rock the boat. 6China Today: President Obamanamed his Commer
20、ce Secretary, GaryLocke, to be the new U.S. Ambassadorto China. What do you make of this appointment? Why did the White Housetap the Commerce Secretary for the position? How do you think it will impacton our future relations? Jia Xiudong: I think it reflects theimportance with which the U.S. viewsit
21、s relations and communications withChina. China has become the worldssecond-largest economy and has moresay now in the international dialogue.We are already center stage and ChinaU.S. relations are of international ratherthan simply bilateral significance. Gary Locke understands Chinapretty well and
22、 is well regarded at anofficial and non-official level. He haswide personal links in China and extensive influence in the U.S. government.The Obama administration values Mr.Lockes background and experience:he contributed much to the development of U.S.-China economic and traderelations during his ti
23、me as Governorof Washington State and as CommerceSecretary. As ambassador, he is expected to further promote economicand trade relations between the twocountries. That said, even though Lockes Chinese ancestry will help people hererelate to him, as an American sworn toserve his 7country, Mr. Locke w
24、ill be sureto defend American interests. Therehave been U.S. ambassadors with military, political and legal backgrounds,some fluent in Chinese, others without aword of the language. China welcomedthem all, as long as they acted as abridge between us and promoted bilateral relationship. China Today:
25、Chinese enterprisesare always encountering barriers todirect investment in the U.S. market.What is the reason, and how can thesituation be improved? Jia Xiudong：You are quite right. Allof the 100 service sectors that the Chinese government promised to open upafter WTO accession lO years ago haveattr
26、acted U.S. companies to invest. Bythe end of 2010, they had invested US$65 billion in 59,000 projects in China.At the same time, Chinese enterprisesinvestments in the U.S. also increasedrapidly. By the end of November 2010,Chinese direct non-financial investmentexceeded US $4.4 billion and the numbe
27、rof Chinese enterprises operating fromthe U.S. topped 1,300. Some Chinese enterprises haveencountered various difficulties withdirect investment in the U.S. On onehand, lack of political trust at the governmental level caused it to treat normal trade as a strategic issue. Americancompanies view Chin
28、ese investmeutwith prejudice, hostility and suspicionhence 8the lack of mutual understanding.The two countries need more communication. The Chinese government shouldconduct more dialogues with its U.S.counterpart, urging equal treatment forChinese companies. On the other hand, the Chinese companies
29、are inexperienced on the publicrelations front, and their investmentstrategies are immature. They are relative novices in the rough and tumblemarket economy, not savvy enoughabout regulations and politics and insufficiently aware of risk. They shoulddo their homework thoroughly and takea comprehensive approach.
