Bob Wells Associates

U.S.-China Economic Relations in the Next Decade

Posted on May 25, 2013

Robert S. Wells of Bob Wells Associates attended the China-United States Exchange Foundation’s Washington DC presentation of its landmark study US-China Economic Relations in the Next Ten Years: Towards Deeper Engagement and Mutual Benefit.
The half day conference was hosted by the Center for Strategic and International Studies (CSIS) on May 23, 2013 and previewed the enormous 18-month effort that examined the U.S. China economic relationship over the past 35 years to understand the interdependencies and then applied that framework of understanding to look forward to envision how the two economies are likely to develop over the next decade.
The study was envisioned Mr. C.H. Tung, Chairman, China-United States Exchange Foundation and was led by a prestigious Executive Committee and 40 member Steering Committee of U.S. and Chinese participants that examined some of the difficulties in the commercial relationship. Key points:
  • From a global perspective, the U.S.-China relationship is the most important bilateral relationship today
  • The current relationship is constrained by mistrust and differences over strategic global issues and difficulties in the commercial relationship including cyber security, intellectual property protection and protectionism on trade and investment
  • Trust needs to be built
  • Opportunities to be seized upon in the current U.S. and China economic relationship include common approaches on energy efficiency,  joining together for a new Doha Round and finding ways to support China’s efforts to provide FDI in the US for infrastructure projects.

The study recommended that China:

  • Deepen its economic reform, redefine the role of government and make the economy more responsive to the market;
  • Address the issues of income disparity, environmental degradation and uneven access  to basic education and healthcare
  • Expand the rule of law and combat corruption

The study recommended that the U.S.:

  • Achieve an internal consensus on economic policy so that the U.S. economy could move forward

The study found that both countries should focus on strategic interests while managing differences in “practical” ways including:

  • Energy security
  • Opening up Chinese capital markets
  • Improving Chinese food safety (critical issue)
  • Trade imbalance
  • Korean Peninsula stability
  • Cybersecurity

Read more at:

http://csis.org/event/us-china-economic-relations-next-decade

http://www.uschina2022.com/