China US economic and trade consultation agreement brings good expectation

On December 13, China issued a statement on the first phase of China US economic and trade agreement: China and the United States reached an agreement on the text of the first phase of economic and trade agreement. Song Zhiping believes that this is a phased achievement of China US economic and trade consultation. In general, this agreement is in line with the inherent needs of China's high-quality economic development, in line with the common interests of the people of China and the United States, in line with the unanimous wishes of the international community, and has brought us five major development expectations.

First, we will increase our expectations for the stable development of global markets. In the context of the current downward pressure on the global economy, this agreement is undoubtedly a major good for the global economy, which will greatly enhance global market confidence, stabilize market expectations, and create a good environment for normal economic, trade and investment activities. At the same time, the signing of the agreement between the two sides will play a positive role in promoting the parties to solve trade disputes in a win-win way. The second is to enhance the expectation of sound development of China US economic and trade relations. This agreement is in the interests of the people of China and the United States and the people of the world. Expanding trade cooperation between China and the United States is conducive to the optimal allocation of resources and the adjustment of economic structure of the two countries. The development of China-U.S. trade to this scale stems from the strong complementarity between China and the U.S. economy. The agreement will put China and the United States on a track of sound cooperation and development, and tap into greater trade potential between China and the United States. The third is to enhance the expectation of rapid recovery of China's export and investment. In the past two years, the economic and trade frictions between China and the United States have increased the uncertainty of global economic development and reduced investor confidence. Under the influence of the external environment, especially the export situation, it has a more direct impact on China's industrial production. Due to the continuous increase of tariff rate, Sino US trade has shrunk significantly in the past two years. The current tariff reduction can boost enterprises' confidence in investment and promote export growth.

The fourth is to enhance the expectation of upgrading the industrial structure and realizing high-quality development of enterprises. China's reform and opening-up are continuing to deepen, and China's economy is hedging economic risks by actively reducing taxes and fees, guiding high-quality development, and deepening domestic demand to improve people's livelihood. The agreement will further contribute to the construction of a stable and better macroeconomic pattern in China, as well as to the upgrading of China's industrial structure and the high-quality development of enterprises. Fifthly, we should strengthen the expectation of Chinese enterprises to increase innovation. The United States is restraining China's technological progress and industrial upgrading through trade war. In the face of extreme pressure from the United States, in addition to necessary counter-measures, the most important thing for China is to focus on doing its own thing, the key of which is to accelerate the improvement of China's key core technology innovation capability. The economic and trade frictions between China and the United States that have lasted for nearly two years have even pushed some Chinese enterprises onto the road of independent development and export upgrading. On this basis, the strengthening of intellectual property protection in the agreement will further promote domestic enterprises to increase innovation.