Striving for ‘compatibility’ boosts globalization

By Liu Zhiqin Source:Global Times Published: 2017/7/18 22:18:39

Illustration: Peter C. Espina/GT

The first China-US Comprehensive Economic Dialogue is scheduled to take place in Washington on Wednesday, boosting hopes for inclusive growth despite fears of protectionism.

Chinese President Xi Jinping had reiterated in his speech during the G20 summit held recently in Hamburg that China would promote "openness" and "inclusiveness" to support globalization. This announcement has won full support from other state leaders and helped the summit to reach successful agreements on free trade and other important subjects.

Openness and inclusiveness represented the core spirit of the Hangzhou G20 last year, reflecting the wisdom and patience of the Chinese way to deal with different ideas and opinions on world affairs. The world community is showing its absolute understanding and "compatibility" to support the idea of "inclusiveness."

There are many proposals and dreams in other nations to develop their economies. We have to make all of them "compatible" with each other. "Compatibility,"  the translation of a word used to mean a willingness to cooperate in making different countries' trading and other systems compatible, is the key toward achieving "inclusiveness" because it can help us face new challenges and uncertainties in globalization. The world community needs to offer more "compatibility" on different issues.

First, the Trump administration has decided to quit the Paris accords, which could fray joint efforts by the rest of the world. As a responsible country, China has clearly stressed its commitments to fulfill its target and will honor its holy promise to the world. This has won great respect from most nations, because our attitude glowed with the spirit of "compatibility" with those who have different ideas about a common interest.

Second, Germany had tried to alert its European allies to rely on themselves, because the US is no longer reliable. To solve the disputes and heal the bad faith that has been created, "compatibility" is crucial for both EU countries and the US. China will not encourage one side to act against another, because they are all important trading partners for China. Only with "compatibility" can they find ways to solve their disputes. The current dispute between the US and Germany will continue for a while until trust is restored.

China and the US launched a 100-day program for detailed discussion to solve trade disputes. People all over the world had worried that conflicts would erupt between China and the US over currency policy, trade deficits and investment. But those who were willing to see an escalation of conflicts are disappointed to find out that no fire or even sparks occurred. Both countries have solved the problems in a very frank but friendly way to make a win-win outcome that surprised the world but was welcomed by the economic community.

The only way to explain this successful result is the "compatibility" that the two nations have adopted to tackle all disputes and tough issues. Only "compatibility" can help build up fair competition and set out transparent, frank collaboration between China and the US.

China and the US have set up a good example for the rest of the world on how to use "compatibility" to protect each other's core interests.

Third, China is taking all necessary steps to boost its economy. China will strengthen its investments via the Belt and Road (B&R) initiative to stimulate globalization. China is investing more worldwide and the gains from investment overseas are showing big increases due to the policy of "compatibility" that Chinese companies have followed.

China Investment Corp reported on July 11 that its profit reached a high of $75.3 billion. These investments are mainly injected into the B&R initiative in fields such as infrastructure, property and long term equity projects. Without a policy of "compatibility," we could not have made such great achievements to deal with the sharp competition in the international market.

In order to make more contributions to stabilizing the world economy and fighting against protectionism and unfair trade instruments, China needs to show more "compatibility" to safeguard and further promote real globalization.

The author is a senior fellow with the Chongyang Institute for Financial Studies at Renmin University of China.

Posted in: INSIDER'S EYE

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