Page 20 - THE SOUTH CHINA BUSINESS JOURNAL
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HLIGHT While Saturday marked the first 100 days of the countries, there are other issues of profound economic conse-
Trump administration, another important 100-day mark quence that are not neatly captured in bilateral trade statistics.
is on the horizon. Earlier this month, President Trump met Chi- These include China’s use of regulatory levers to restrict the
nese President Xi Jinping for the first time. At their meeting, growth potential of U.S. service providers, an area where U.S.
the two leaders agreed to a 100-day plan to achieve results to companies are among the most competitive globally. According
improve the bilateral economic and commercial relationship, in- to the OECD, China has the most restrictive investment environ-
cluding reducing the trade deficit. ment of all G20 countries.
The 100-day plan sets the stage for the future of relations be- Concrete actions by China to reduce distortions in its domestic
tween the world’s two largest economies. The bilateral relation- economy that restrict U.S. exports as well as open its market wid-
ship is enormously consequential for the U.S., China, and the er to American investors would create new jobs and support eco-
world. For the United States, trade with China supports millions nomic growth in the United States. Importantly, such actions
of U.S. jobs, and China’s growing consumer market is critically would be consistent with goals China’s leaders have repeatedly
important to U.S. exporters and investors. For China, the United stated and with the advice of Chinese and foreign economists
States is its largest goods export market. And for the world, the regarding the steps China needs to take to ensure sustained eco-
U.S. and China constitute 40 percent of global GDP. nomic growth and avoid the “middle income trap”.
A Win-Win Strategy
for 100 Days:
5 Ways China Can Open Its
Economy to the U.S.
By Jeremie Waterman, President of the China Center and Dan Markus, Director, China, U.S. Chamber of Commerce
Despite the opportunities, challenges are continuing to restrict So what steps can be taken before July 16 that would promote
the full potential of the bilateral relationship, and they are in- these goals and foster a more enduring and mutually beneficial
creasingly eroding its foundation. China’s economy remains relationship?
too closed to American exporters and investors, a fact at least
rhetorically recognized by China’s leaders who have stressed The U.S. Chamber recommends that the two governments focus
the importance of further market-based economic reforms and
opening to the future of the Chinese economy. Chinese subsidies 1on achieving outcomes in at least five areas as follows:
for a range of domestic industries—solar, steel, aluminum, wind Suspend Implementation of the Pending Cybersecurity
turbines, and others—have substantially reduced the volume Law and Address U.S. Concerns Regarding ICT Policies
of U.S. exports and artificially depressed global prices, thereby
harming U.S. manufacturing. A 100-day plan that does not deliver significant progress in curb-
ing discriminatory regulations in China’s ICT sector—including
Further, while the U.S. trade deficit with China is an eye-popping a suspension of the pending Cybersecurity Law—cannot be con-
statistic, it does not capture all aspects of the inequities in the sidered a success. A raft of new Chinese laws and regulations are
commercial relationship. Much of the challenge in the commer- restricting U.S. technology companies from exporting and selling
cial relationship involves market access for U.S. firms in China, their products and services in China and are placing companies’
the vast majority of which do not re-export from China to the most sensitive technology at risk. In the area of cloud services,
United States. While issues of Chinese discrimination against for example, China is requiring foreign companies to transfer
U.S. exports are an important issue to address between the two their technology and to surrender their brand and operating
18
Trump administration, another important 100-day mark quence that are not neatly captured in bilateral trade statistics.
is on the horizon. Earlier this month, President Trump met Chi- These include China’s use of regulatory levers to restrict the
nese President Xi Jinping for the first time. At their meeting, growth potential of U.S. service providers, an area where U.S.
the two leaders agreed to a 100-day plan to achieve results to companies are among the most competitive globally. According
improve the bilateral economic and commercial relationship, in- to the OECD, China has the most restrictive investment environ-
cluding reducing the trade deficit. ment of all G20 countries.
The 100-day plan sets the stage for the future of relations be- Concrete actions by China to reduce distortions in its domestic
tween the world’s two largest economies. The bilateral relation- economy that restrict U.S. exports as well as open its market wid-
ship is enormously consequential for the U.S., China, and the er to American investors would create new jobs and support eco-
world. For the United States, trade with China supports millions nomic growth in the United States. Importantly, such actions
of U.S. jobs, and China’s growing consumer market is critically would be consistent with goals China’s leaders have repeatedly
important to U.S. exporters and investors. For China, the United stated and with the advice of Chinese and foreign economists
States is its largest goods export market. And for the world, the regarding the steps China needs to take to ensure sustained eco-
U.S. and China constitute 40 percent of global GDP. nomic growth and avoid the “middle income trap”.
A Win-Win Strategy
for 100 Days:
5 Ways China Can Open Its
Economy to the U.S.
By Jeremie Waterman, President of the China Center and Dan Markus, Director, China, U.S. Chamber of Commerce
Despite the opportunities, challenges are continuing to restrict So what steps can be taken before July 16 that would promote
the full potential of the bilateral relationship, and they are in- these goals and foster a more enduring and mutually beneficial
creasingly eroding its foundation. China’s economy remains relationship?
too closed to American exporters and investors, a fact at least
rhetorically recognized by China’s leaders who have stressed The U.S. Chamber recommends that the two governments focus
the importance of further market-based economic reforms and
opening to the future of the Chinese economy. Chinese subsidies 1on achieving outcomes in at least five areas as follows:
for a range of domestic industries—solar, steel, aluminum, wind Suspend Implementation of the Pending Cybersecurity
turbines, and others—have substantially reduced the volume Law and Address U.S. Concerns Regarding ICT Policies
of U.S. exports and artificially depressed global prices, thereby
harming U.S. manufacturing. A 100-day plan that does not deliver significant progress in curb-
ing discriminatory regulations in China’s ICT sector—including
Further, while the U.S. trade deficit with China is an eye-popping a suspension of the pending Cybersecurity Law—cannot be con-
statistic, it does not capture all aspects of the inequities in the sidered a success. A raft of new Chinese laws and regulations are
commercial relationship. Much of the challenge in the commer- restricting U.S. technology companies from exporting and selling
cial relationship involves market access for U.S. firms in China, their products and services in China and are placing companies’
the vast majority of which do not re-export from China to the most sensitive technology at risk. In the area of cloud services,
United States. While issues of Chinese discrimination against for example, China is requiring foreign companies to transfer
U.S. exports are an important issue to address between the two their technology and to surrender their brand and operating
18
