Page 58 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
companies on their global business, especially in China be it on trade or investment or other issues. On the plus
and Asia. In her view, the dialogue provides a serious side, he is likely to welcome more Chinese investment in
and regular way for the two countries to talk together, the U.S., notably in the manufacturing and infrastructure
identify problems and work to find common ground to sector.” Jarrett said most of the chamber’s member
overcome them. Franklin said there must be leadership companies that have manufacturing operations in China
from the top and that the tone and priorities for the are here to stay because they want to sell to the China
dialogue must come from the two leaders. “And where market and stay close to their customers rather than
there are disagreements - we know already we have some export their products back to the U.S.. “While the rapid
disagreements - I am hoping they will look for common increase in Chinese exports do add a certain volatility
ground to begin to find solutions,” she said (Chen, Cui). to the U.S. labor market, the solution to this situation is
not protectionism. Rather, the U.S. government should
David Lampton, Director of China Studies at the Johns do more to provide training programs and assistance to
Hopkins University School of Advanced International workers in industries in decline or who have lost their jobs
Studies, said Franklin was correct, but he said he is a bit because of technological change or changes in consumer
more worried than she is. Lampton’s biggest concerns demands,” he said (He).
were about possible trade retaliation. “I think if we do get
into trade retaliation, it’s lose-lose for both countries,” he It is clear that neither China nor the United States have
said.“We will see increasing trade frictions for a while until any interest in a so-called trade war. To both its credit—
each side makes accommodation with the other” (Chen, and ultimately its benefit—China made significant
Cui). Kenneth Jarrett, President of the American Chamber progress in the implementation of the China-U.S. 100-
of Commerce in Shanghai claims that U.S. businesses in day action plan, particularly in agricultural, energy and
China believe that bilateral trade between Washington high-end manufacturing products trade. For example,
and Beijing “creates benefits for all” and that the U.S. Chinese government lifted a 13-year ban in June 2017
government and the American people remain open to to allow certain categories of U.S. beef to be imported
Chinese investment. He added that a trade war would into China. Bruce Blakeman, Vice President of Corporate
be harmful to both countries given the interdependence Affairs for Cargill Inc in the Asia-Pacific region, said the
of the U.S. and Chinese economies. “No one wants to see beef trade demonstrates how the U.S. and China can
a trade war. It would be damaging for U.S. workers, U.S. solve trade issues in an efficient and effective manner.
consumers, U.S. companies and U.S. investors, and would “We understand from the Meat Exporters Association in
also be damaging to China,” he said. the U.S. that there have been about 1,000 inquiries from
Chinese meat processors and distributors about buying
While the change of administration created a sense of U.S. beef, since the trade agreement was announced,”
uncertainty for companies, Jarrett said the U.S. business said Blakeman. “It shows there is great demand for U.S.
community in China would first wait to see how much beef from Chinese consumers. China is also great news
of U.S. President Donald Trump’s campaign rhetoric will for U.S. beef producers and processors.” China is currently
become reality before taking action. Chinese outbound the world’s fastest growing market for beef consumption.
direct investment to the U.S. soared to $45.6 billion Its beef imports mainly come from Australia, Argentina,
in 2016, according to consultancy Rhodium Group, Brazil and Uruguay. China’s domestic beef market has a
thrice the amount in 2015. However, growing scrutiny 10 percent demand gap that needs to be filled by imports
over Chinese investors has led to a growing number (Zhong and Ren).
of failed buyout attempts, with Washington citing
“national security concerns”. “To the extent that Chinese Sino-U.S. bilateral trade amounted to $219.26 billion
investment creates jobs for Americans, I am confident between January and May in 2017, up 14.1 percent year-
that it will remain welcome by the U.S. government and on-year, while China imported $63.17 billion of U.S. goods
the American people,” he noted. such as crude oil, soybeans, machinery and transportation
tools, jumping 21.4 percent from the same period a year
The Trump presidency will give priority to economy earlier, according to the latest data from the Ministry of
at the expense of ideological and geopolitical concerns, Commerce. Wei Jianguo, Vice Chairman of the Beijing-
said Wu Xinbo, Director of the Center for American based Center for International Economic Exchanges, said
Studies at Fudan University,”Trump will examine what China would increase its agriculture imports from the
specific impact China’s rise will have on U.S. interests, U.S.. He said, “The U.S. certainly doesn’t want a trade war
58
companies on their global business, especially in China be it on trade or investment or other issues. On the plus
and Asia. In her view, the dialogue provides a serious side, he is likely to welcome more Chinese investment in
and regular way for the two countries to talk together, the U.S., notably in the manufacturing and infrastructure
identify problems and work to find common ground to sector.” Jarrett said most of the chamber’s member
overcome them. Franklin said there must be leadership companies that have manufacturing operations in China
from the top and that the tone and priorities for the are here to stay because they want to sell to the China
dialogue must come from the two leaders. “And where market and stay close to their customers rather than
there are disagreements - we know already we have some export their products back to the U.S.. “While the rapid
disagreements - I am hoping they will look for common increase in Chinese exports do add a certain volatility
ground to begin to find solutions,” she said (Chen, Cui). to the U.S. labor market, the solution to this situation is
not protectionism. Rather, the U.S. government should
David Lampton, Director of China Studies at the Johns do more to provide training programs and assistance to
Hopkins University School of Advanced International workers in industries in decline or who have lost their jobs
Studies, said Franklin was correct, but he said he is a bit because of technological change or changes in consumer
more worried than she is. Lampton’s biggest concerns demands,” he said (He).
were about possible trade retaliation. “I think if we do get
into trade retaliation, it’s lose-lose for both countries,” he It is clear that neither China nor the United States have
said.“We will see increasing trade frictions for a while until any interest in a so-called trade war. To both its credit—
each side makes accommodation with the other” (Chen, and ultimately its benefit—China made significant
Cui). Kenneth Jarrett, President of the American Chamber progress in the implementation of the China-U.S. 100-
of Commerce in Shanghai claims that U.S. businesses in day action plan, particularly in agricultural, energy and
China believe that bilateral trade between Washington high-end manufacturing products trade. For example,
and Beijing “creates benefits for all” and that the U.S. Chinese government lifted a 13-year ban in June 2017
government and the American people remain open to to allow certain categories of U.S. beef to be imported
Chinese investment. He added that a trade war would into China. Bruce Blakeman, Vice President of Corporate
be harmful to both countries given the interdependence Affairs for Cargill Inc in the Asia-Pacific region, said the
of the U.S. and Chinese economies. “No one wants to see beef trade demonstrates how the U.S. and China can
a trade war. It would be damaging for U.S. workers, U.S. solve trade issues in an efficient and effective manner.
consumers, U.S. companies and U.S. investors, and would “We understand from the Meat Exporters Association in
also be damaging to China,” he said. the U.S. that there have been about 1,000 inquiries from
Chinese meat processors and distributors about buying
While the change of administration created a sense of U.S. beef, since the trade agreement was announced,”
uncertainty for companies, Jarrett said the U.S. business said Blakeman. “It shows there is great demand for U.S.
community in China would first wait to see how much beef from Chinese consumers. China is also great news
of U.S. President Donald Trump’s campaign rhetoric will for U.S. beef producers and processors.” China is currently
become reality before taking action. Chinese outbound the world’s fastest growing market for beef consumption.
direct investment to the U.S. soared to $45.6 billion Its beef imports mainly come from Australia, Argentina,
in 2016, according to consultancy Rhodium Group, Brazil and Uruguay. China’s domestic beef market has a
thrice the amount in 2015. However, growing scrutiny 10 percent demand gap that needs to be filled by imports
over Chinese investors has led to a growing number (Zhong and Ren).
of failed buyout attempts, with Washington citing
“national security concerns”. “To the extent that Chinese Sino-U.S. bilateral trade amounted to $219.26 billion
investment creates jobs for Americans, I am confident between January and May in 2017, up 14.1 percent year-
that it will remain welcome by the U.S. government and on-year, while China imported $63.17 billion of U.S. goods
the American people,” he noted. such as crude oil, soybeans, machinery and transportation
tools, jumping 21.4 percent from the same period a year
The Trump presidency will give priority to economy earlier, according to the latest data from the Ministry of
at the expense of ideological and geopolitical concerns, Commerce. Wei Jianguo, Vice Chairman of the Beijing-
said Wu Xinbo, Director of the Center for American based Center for International Economic Exchanges, said
Studies at Fudan University,”Trump will examine what China would increase its agriculture imports from the
specific impact China’s rise will have on U.S. interests, U.S.. He said, “The U.S. certainly doesn’t want a trade war
58
