The Third Round Of The Sino US Strategic And Economic Dialogue Is Now Open To &Nbsp; The Four Main Topics Are Discussed.

Today (May 9th), the two round of the third round of Sino US

The Sino US strategic and economic dialogue mechanism was jointly advocated by the heads of state of the two countries in April 2009. It is an important measure for the two sides to push forward the development of Sino US relations in the new era.

In the past two years, the two sides have successfully held two rounds of dialogue and achieved fruitful results.

This round of dialogue was held in the context of President Hu Jintao's successful visit to the US in January, and the Sino US relations entered a new stage of construction partnership.

On the 6 day of this month, Vice Foreign Minister Cui Tiankai briefed the Chinese and foreign media on the theme of the economic dialogue as "building a comprehensive and mutually beneficial Sino US economic partnership".

Around this theme, the two sides will discuss the following topics: first, promoting trade and investment cooperation, including promoting trade and investment cooperation in emerging industries; two, improving the financial system and strengthening financial supervision, including financial sector reform, cross-border financial supervision and cooperation; three, promoting structural adjustment and pformation of development mode; and four, promoting a strong, sustainable and balanced growth of the economy, including the global macroeconomic situation and challenges, which will involve the sovereign debt crisis in Europe, the impact of the Middle East and North Africa on the regional and world economies, and Japan's catastrophic natural disasters.

Policy barriers to trade and investment reduction are key

Zhu Guangyao, Vice Minister of finance, said earlier that with the development of China's economy, Chinese enterprises are going to the world, which is good for China and for other countries.

"The US side has repeatedly welcomed the Chinese enterprises' investment in the US, but we have also received complaints from many Chinese enterprises about their investment in the US."

Zhu Guangyao said that, as the US government has asked the Chinese side to put forward the requirements for access, the Chinese government must, on behalf of Chinese enterprises, clearly demonstrate China's position and policy demands to the US side and ask the US side to provide a good legal system environment for Chinese enterprises to enter the United States, especially not discriminating against state-owned enterprises in China.

At the same time, two well-known research institutions in the United States jointly issued a report in May 4th, suggesting that the two parties should jointly send a clear message to China about welcoming China's investment in the US, and at the same time form a unified mechanism from the federal government system to encourage China to invest directly in the US, so as to ensure that investment meets the needs of the United States.

According to the report, China's foreign direct investment will reach 1 trillion to 2 trillion dollars by 2020. If the United States can attract 1 trillion dollars of Chinese investment, it will create 700 thousand jobs. It will help solve the structural unemployment crisis in the United States and speed up its economic recovery process. It can be seen as a win-win development strategy.

In response, Zhou Dunren, deputy director of the US economic research center in Pudong, Shanghai, said that although there were "Anti China" forces in the US political arena, the business community was eager to expand its exchanges with China.

However, Zhou Dunren also expressed concern about the "going out" Chinese enterprises. He cautioned that China's overseas investment could not continue to maintain the status quo of "only paying tuition fees and not making profits".

RMB exchange rate: the direction of reform, the two sides recognize that the appreciation is still different.

In May 6th, when answering questions about the RMB exchange rate, Zhu Guangyao said that the issue of exchange rate is a country's economic sovereignty, and exchange rate policy is part of the overall macroeconomic policy framework.

China and the United States share the same understanding of the direction of the RMB exchange rate reform. However, the Chinese side insists that the reform goal should be to deepen the RMB exchange rate formation mechanism, while the US side stresses the appreciation of the RMB exchange rate, so it needs to be discussed.

Before that, the domestic debate on RMB appreciation has been in full swing, and many experts hold a negative attitude.

Whether passive or active appreciation, there will be some room for the appreciation of the market, which will attract international funds, especially hot money, into China. This will increase the capital account surplus and increase the pressure of price increase.

In this way, the appreciation of the renminbi will not only inhibit domestic inflation, but will produce the effect of "fighting for the fire", which is obviously not what the Chinese government wants to see.

For the previous Sino US strategic and economic dialogue, the reform of the RMB exchange rate has always been a topic.

In from April 16th to 25th this year, when congressional leader Reed led a delegation to China, Mr schamer, a tough member of the RMB appreciation, was also there. The purpose of the visit was obvious. The US side asked the Chinese financial regulatory authorities to allow the RMB to appreciate faster.

The huge risk behind the continued appreciation of the renminbi has also led to the gradual warming of trade frictions between China and the United States.

The appreciation of the renminbi will lead to the rapid inflow of hot money from abroad, prompting asset prices to soar, and the market facing serious bubble risks; if the bubble is pierced by international capital after being blown up infinitely, then international capital will gain huge profits, while leaving market investors with "chicken feather".

Objectively speaking, the RMB exchange rate should be based on the real effective exchange rate and cannot be measured by a simple exchange rate against the US dollar. If both sides stand on an objective position, they will not be so tit for tat.

In this regard, Zhu Guangyao pointed out that on the issue of RMB exchange rate, China and the United States maintain smooth communication channels.

Under the same direction of reform and different views on specific scope, the two sides can deepen mutual understanding through communication and communication.

Eager to change bilateral trade pattern or "lose both sides"

China's foreign trade data released by the General Administration of Customs in 1~3 this year show that China's trade deficit totaled 1 billion 20 million US dollars in the first quarter, compared with a surplus of US $13 billion 910 million in the first quarter of last year.

This is the first time that China has seen a quarterly trade deficit in 6 years, of which the deficit of 7 billion 300 million US dollars in February hit the largest monthly deficit in 7 years.

However, in the first quarter of this year, the trade deficit of China's processing industry amounted to US $77 billion 110 million, that is to say, without processing trade, China's deficit will reach US $78 billion 130 million in the first quarter, or 312 billion 520 million US dollars per annum, that is, China will become a trade deficit country.

Therefore, if China's trade surplus with the United States is cut down according to the requirements of the United States, the processing trade can only be reduced.

Therefore, in order to change this trend, the United States must make the profit margins of domestic production and processing catch up with and exceed the profit margins abroad.

Overseas refers to the whole world, not China.

Because by the end of 2009, the total foreign direct investment in the US accounted for only 1.41% of China's investment.

At the same time, the difficulty for China to reduce processing trade lies in local employment and economic growth.

Taking Apple Corp as an example, every year, orders from apple to Foxconn, quanta, HSK, Chen Hung and Shenghua are about 100 billion yuan, which directly drives China's 100 billion GDP to solve the employment of millions of people.

Therefore, at the present stage, the reduction of processing trade is not feasible for both China and the United States. If haste is too urgent, it will not be conducive to the development needs of China and the United States at the present stage. With an in-depth understanding of the essence of economic relations under the trade structure, this unnecessary conflict will be resolved.

International economic stability from bilateral to global is an important prerequisite.

Facing the global challenges and the problems between the two countries, China and the United States, as the largest developing countries and the most developed countries in the world, need to further strengthen communication and coordination.

Through dialogue, communication and coordination, the two sides can deepen mutual understanding, increase confidence and dispel doubts, help to reduce or resolve the potential risks facing bilateral relations in the coming period, and are of great significance for actively implementing the important consensus of the two heads of state and promoting world peace, stability and development.

In addition to the research and Discussion on bilateral issues, the third round of Sino US dialogue will also discuss issues related to the European sovereign debt crisis, the impact of the situation in the Middle East and North Africa on the regional and world economies, the catastrophic natural disasters in Japan and the impact of rising energy prices on the strong, sustained and balanced growth of the world economy.

After all, the stability of the international economy and living environment is an important prerequisite for national development and progress. We hope that through the above discussions, we will promote sustained and stable recovery of the global economy, reduce global economic imbalances and promote the reform of the international monetary system.

As vice minister of foreign affairs Cui Tiankai said at the briefing of Chinese and foreign media in May 6th, a good Sino US relationship is not only in the common interests of China and the United States, but also the common expectation of the international community.

We hope that through discussions, we will promote sustained and stable recovery of the global economy, reduce global economic imbalances and promote the reform of the international monetary system.