Former U.S. Secretary of State Henry Kissinger (R, front) and Tung Chee-hwa, vice chairman of the National Committee of the Chinese People' s Political Consultative Conference, shake hands at a forum entitled "U.S.-China Economic Relations in the Next Decade" in New York, the United States, May 21, 2013. (Xinhua/Wang Lei)
China and the United States can mutually benefit from deeper economic relations in the next decade along with U.S. economic recovery and booming Chinese middle class, said a bilateral study released at a forum on Tuesday.
"This study comes at a critical juncture in the bilateral relationship, a time when the two countries can either continue unprecedented cooperation or can become sidetracked by an increasing number of frictions and misunderstandings that threaten to complicate the future development of this critical economic partnership," said Tung Chee Hwa, founder of China-U.S. Exchange Foundation (CUSEF) that initiated the study.
Tung is also the vice chairman of the National Committee of the Chinese People' s Political Consultative Conference.
Former U.S. Secretary of State Henry Kissinger also said at the forum "Both of our countries have serious domestic issues, as they are moving into the new period; both of our countries face a new international situation; but both our countries have understood that we need a cooperative pattern. We now have to define what it is."
The study explored potential areas for increased bilateral cooperation and one of its findings is that the United States is likely to undertake significant infrastructure building over the next decade, and Chinese investors with their surplus savings can provide some funding for the effort and obtain attractive returns.
The authors of the study include Nobel Prize laureate economist Dr. Michael Spence, former Chair of the Council of Economic Advisors Dr. Michael Boskin, and Chairman of Fung Global Institute Dr. Victor Fung.
Dr. Spence said that nothing would be better for the Chinese economy than a healthy European economy and an American recovery; and similarly, America or Europe can benefit from high growth in China.
According to the study, China's middle class is expected to number 630 million by 2022, an increase from 230 million in 2012.
In 2022, U.S. exports to China are projected to generate 456 billion U.S. dollars and more than 2.54 million jobs in the United States.
Separately, the United States can create 35 billion dollars and 610,000 jobs by 2022 if visa restrictions are lifted, allowing up to 10 million Chinese travelers to visit the country per year, up from 1.1 million in 2011.
The report also expected the United States to remain the largest economy in the world by 2022, with a GDP of 21.1 trillion dollars, and China's GDP to reach 17 trillion dollars.
The authors recommended that both countries should launch a study of the feasibility and the benefits of a bilateral free trade agreement and the study should be completed within one year.
Moreover, the United States and China should complete the negotiations for a bilateral investment treaty within one year.
The authors also suggested China establish a special national court exclusively for intellectual property disputes.
The CUSEF was established in Hong Kong in 2008 with the purpose of further improving communications and enhancing understanding between the peoples of China and the United States.
