Zeng Calls for US-China Economic Cooperation in Five Areas

In his October 22 speech at the dinner reception for the Fourth Seminar on China-US Relations, Zeng Peiyan, Chairman of the China Center for International Economic Exchanges (CCIEE), said that economic and trade cooperation has become powerful ties that bind China and the US together, stabilizing and promoting all-round development of the bilateral relationship. Zeng urged that China and the US address each other's interests and concerns on the principles of equality and mutual respect, strengthen mutual trust and cooperation, and work toward a relationship that is in the best interests of both countries. Zeng also called attention to five major issues in Sino-US economic and trade ties in the post crisis era.

Balanced development, Zeng said, should not be separated from the context of economic globalization. In the history of societal development, there has never been absolute balance, but only relative balance, according to Zeng. Thus the dynamics of balanced development can be appreciated only through a comprehensive point of view.  In some ways, what drives the world economy is the process in which imbalance leads to balance which in turn leads to new imbalance, said Zeng. As for cooperation in global climate change, he pointed out that China has committed itself to economic restructuring and has made unremitting efforts in addressing such issues as climate change and carbon emission reduction. In the meantime, Zeng called on the U.S. to immediately undertake emission-reducing efforts comparable to those already undertaken by other developed countries, and to play a vital role in dealing with climate change by providing developing countries with financial support, technology transfer, and capacity-building. Zeng was confident that there is tremendous room for cooperation between the two countries in coping with climate change and that such cooperation will be a major component of Sino-US economic cooperation.

Zeng pointed out that in the course of economic recovery special attention should be paid to the elimination of "toxic" assets in restructuring the international financial system in the post-crisis era, because this will help eliminate the latent causes for another financial crisis; that reform of the international financial system should be sped up in order for the world economy to achieve comprehensive, sustainable, and balanced development; and that the international reserve currency system should be gradually diversified, with major issuing countries of reserve currency assuming corresponding international responsibilities for the stability of their respective currency. Zeng also called for extreme caution in discontinuing economic stimulus policy, as it is necessary for both China and the U.S. to continue their stimulus policies and to fine-tune these policies from time to time. Zeng said that China and the U.S. should firmly oppose trade protectionism and restrictions on investment, keep trade and investment from the interference of non-economic factors, champion a just, free and open global trade and investment system, and support the resumption of the Doha Round Negotiation as early as possible so that a comprehensive and balanced agreement may be reached. Zeng urged the two countries to strengthen communication and coordination in macroeconomic policies. He encouraged the economic research institutes and think tanks of both countries to conduct research on how and to what extent the two countries' macroeconomic policies affect each other, because such research is believed to be beneficial to mutual understanding.