Reciprocal opening-up only sustainable way to mutual gains for China, trading partners

By Hu Weijia Source:Global Times Published: 2018/5/23 21:58:42

China's pledge to buy more US goods as part of a deal to avert a bilateral trade war leaves Germany squeezed in the middle, Bloomberg News reported Wednesday.

As China and the US continue hashing out details of their deal, China's trade partners may worry that Washington's efforts to push up sales of US products may encroach on their market share in the world's second-largest economy. It's sad to see that the trade dispute between China and the US, which was initiated by US President Donald Trump, may end up as a global battle for market share in China.

The key point behind China's trade talks with the US is not to take measures that will substantially reduce the US' massive trade deficit. Beijing will most likely be willing to focus more on how economic cooperation could lead to reciprocal opening-up, instead of just changing the trade imbalance. German products will not lose market share in China, as long as they can remain competitive with their rivals.

China and the US are the two major economic powers in the world. China will not bow to US pressure, and vice versa. The best way to avert a trade war is sticking to the direction of reciprocal opening-up of their domestic markets. China's move to open up its economy is also Germany's concern.

Under the "Made in China 2025" strategy, China hopes to transform itself from being a "world factory" to an advanced industrialized nation, but that doesn't mean that China wants to close its door on the world. In reality, China has to enhance its interaction with other economies, at a time when Chinese manufacturers are striving to absorb advanced overseas technologies and give more attention to the global market as part of their internationalization strategy. The era of cheap labor in China is over, and Chinese manufacturing must reinvent itself. This will be impossible to achieve if the country stops opening up its economy. China will continue to follow its own rhythm.

China's efforts to further open up its markets will offer potential business opportunities to German companies, but whether they can seize the chance to gain greater market share in China depends on their business competitiveness with rivals from countries including the US.

The opening of markets must be reciprocal. China hopes the US and European countries will also further open up their domestic markets and high-technology exports. Only reciprocal economic exchanges are sustainable.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn



Posted in: EYE ON ECONOMY

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