Sound Sino-US relations to boost world's confidence

Efforts to stabilize business ties between China and the United States and prevent economic "decoupling" will prove beneficial for companies and consumers in both countries, amid factors including mounting instability and uncertainty in the global economy, experts and business leaders said on Sunday.

They also said that, with a much-anticipated meeting between the leaders of the two countries drawing near, more positive signals need to be sent, as such signals can help bolster confidence in not only both countries' economic growth, but global economic recovery as well.

Zhang Yansheng, chief researcher at the China Center for International Economic Exchanges, said, "There are some extremists in the US who pursue 'economic decoupling' from China, and it is critically important for the two countries to rely on stable and high-level communication and dialogue mechanisms to discuss matters of concern and improve bilateral economic ties.

"As they are the world's two largest economies, improvement to their economic relations will inject greater positive energy into the world economy, especially as inflation in the US persists while global investment and trade slow down sharply," Zhang said.

Furthermore, uncertainties in China-US economic relations have had a negative impact on the development of other countries that rely heavily on global trade.

Li Haidong, a professor at China Foreign Affairs University's Institute of International Relations in Beijing, said that restrictive US measures toward China, particularly in the field of advanced technology, will ultimately backfire. This will cause great damage to the interests of US companies, and the companies cannot afford to abandon China's huge market, Li said.

Zhang said it is unfair for the US to have added so many Chinese enterprises to its "entity list", an export blacklist, and it will be of great significance for China to express its concerns over matters like that through dialogue.

"To be responsible for both their people and those of the rest of the world, the two countries must reach consensus that they need to maintain good economic relations and jointly safeguard world development," he said.

"The US should take concrete actions to promote bilateral economic relations, while China stays committed to further deepening reform and expanding opening-up to strengthen economic and trade ties with the US," Zhang added.

Lyu Shuping, president for China and Asia at Xylem Inc, a US-based water technology provider, emphasized that harmonious China-US business ties contribute to the growth of US companies operating in China.

Despite external uncertainties, China has become the company's second-largest single market — behind only the US market — by sales revenue, as well as a long-term market of strategic significance, Lyu said.

Xylem has not only expanded its presence in the Chinese market, but also exported its products manufactured in China to a large number of economies participating in the Belt and Road Initiative and to nearly all signatory countries of the Regional Comprehensive Economic Partnership agreement, Lyu added.

On Thursday and Friday, Vice-Premier He Lifeng and US Treasury Secretary Janet Yellen held multiple rounds of "candid, pragmatic, in-depth and constructive" talks in San Francisco. The talks were expected to help facilitate a fruitful meeting between President Xi Jinping and US President Joe Biden. Experts said the meeting between the two heads of state is much anticipated after they reached an important consensus during a meeting in November last year in Bali, Indonesia.

Vice-Premier He, who represents China in dealing with economic and trade ties with the US, was invited by Yellen to visit the US from Wednesday to Sunday, according to the Ministry of Finance.

Liao Min, vice-minister of finance, said at a news briefing in San Francisco that major points of consensus were reached during the talks between He and Yellen.

Both sides agreed to strengthen communication, seek consensus, manage differences and avoid unintended escalation of friction due to misunderstandings, Liao said.

They also emphasized that China and the US do not seek economic "decoupling", and agreed that the two countries will work together to combat common challenges and cooperate on issues including climate change and the debt of low-income and emerging economies.

Meanwhile, China has expressed its concerns regarding the US' restrictions on two-way investments, sanctions against Chinese companies, export controls and additional tariffs.

Yellen said during a news briefing on Friday that the relationship between the US and China is "one of the most important relationships of our time".

"The path it takes will shape opportunities and challenges for people in both our countries and around the world," Yellen said.

"The past two days of meetings in San Francisco have served as another step forward," she added.