The Sino-US relationship has a promising future based on mutual benefits stemming from a number of trade deals signed recently, and the best way to adjust the trade relationship between two nations is in accordance with market rules, a Chinese economist has argued.
Chinese and American companies signed 34 deals worth US$253.5 billion during US President Donald Trump's state visit to China, setting a new record for Sino-US economic and trade cooperation. But some questions, such as “which country will get more out of the deal?” and “how do we understand the idea that the US is becoming an energy exporting country?” appeared online. Chen Yuyu, a professor at the Guanghua School of Management at Peking University, answered the two questions and contributed his opinions to the Guangming Daily
Chen said, in general, he is bullish about future Sino-US relations, although trade frictions are inevitable.
These deals would realize win-win results, according to Chen. With great domestic demand and rapid economic momentum, China will still be a great importer that needs a large number of products for its development. In terms of US interests, such large deals will be beneficial to reduce trade deficits, and help the US create more jobs when there are more investments from Chinese aviation, energy and other industries.
As for the comment about the US becoming an energy exporting nation, Chen said that free trade means the market should play a dominant role in deciding what import and export products should be, in accordance with Chinese and American companies’ costs, benefits and demands. The government can provide services and policies for companies, rather than directly deciding which fields should open or cooperate, Chen added.
Sino-US trade cooperation should be selected by the market, and the two countries’ governments should liberalize trade, facilitate investment and engage in all-round cooperation, which matters a great deal to solving the frictions between the two nations.