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Business / Economy

Dialogue ushers in new beginning of China-US economic ties

(Xinhua) Updated: 2015-06-25 14:12

WASHINGTON -- The annual high-level dialogue between China and the United States concluded on Wednesday, after both sides agreed to cooperate where they could and address their differences so as to advance bilateral economic ties.

During the seventh round of China-US Strategic and Economic Dialogue, the two sides agreed on a number of issues, and disagreed on a string of problems too. What matters most is they show willingness and resolve to address their differences.

The two sides agreed to enhance macro-economic policy coordination, as any key Federal Reserve move, like hoisting the interest rate, could not only affect the US economy but also spill over to the rest of the world.

Their coordination in this regard will help stabilize the global economy and financial sector, and anchor the world economic recovery, which is still fragile and unbalanced.

The United States has made real progress in retuning its economy toward a more sustainable and balanced path, but it still needs to do more to increase saving and further put its own fiscal house in order. China needs to make consistent efforts to shift growth engine from export and investment to consumer spending, and let market play the decisive role in the economic activities.

The two sides also exchanged opinions on thorny issues such as investment barriers, commercial cyber attacks and exchange rates during the dialogue. For instance, both countries agreed to make shorter and better a "negative list" in their long-delayed Bilateral Investment Treaty (BIT) talks.

Opening China's domestic sectors to foreign investment is in the interest of China itself and China will do this in a careful and steady manner. The US side should also be more open-minded in allowing Chinese investment in key sectors such as telecommunications, energy and banking. The national security reasons should not be abused to fend off Chinese investors.

A second offer of the "negative list" will be delivered to each other in early September and rounds of arduous bargaining are still ahead. But major progress is hopefully to be achieved earlier than expected if the two countries continue to show more sincerity and pragmatism at the table.

It is nothing strange that the United States and China disagree on many issues. There are different ways of resolving differences and frictions, and dialogue is certainly the most cost-effective means for doing so.

The conclusion of the seventh round of the dialogue is a new beginning. With Chinese President Xi Jinping's upcoming visit to the United States, the China-US economic ties are expected to enter a new phase and the two people will benefit more.

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