The China-US Strategic Economic Dialogue sets a salutary example
for how the world's major economies can deepen mutual understanding
and better interaction through high-profile talks and
negotiations.
Chinese Vice-Premier Wu Yi and visiting US Treasury Secretary Henry
Paulson jointly announced the dialogue's establishment on Wednesday
in Beijing. Both sides agreed to send high-ranking officials to
meet twice a year to review their economic relationship.
Such a mechanism is welcome not only because it will benefit the
two countries by smoothing bilateral economic ties, it will also
contribute to world economic development by enhancing global
economic stability and security.
In an era of accelerated globalization, every country is
confronted with opportunities and challenges that are both unique
in themselves and universal around the globe.
Hence, when responding, one should not look only inward for
solutions. Policy co-ordination across borders is necessary to
address economic concerns shared by the international
community.
As two of the major growth engines for the world economy, China
and the United States exert significant influence on the global
market.
On one hand, as China rises rapidly as a world manufacturing
center, the country's growing demand for energy and commodities has
understandably raised concerns from the outside.
Although all developing economies like China and India face the
same problem, the external pressure put on China is definitely an
issue no other country has keenly felt.
On the other hand, as the world's largest economy, the United
States can affect global growth with its domestic policies more
than any other country does.
How well the United States will fix its ballooning trade and
budget deficits is crucial to the development of the world economy
in the short term. And how swiftly the US economy can accommodate
the rise of China as a major economic power will decisively shape
the world economic landscape in the long run.
Obviously, there are already enough common issues on the table
when officials from the two countries meet to talk. From bilateral
trade disputes to global strategic economic issues like energy
security, the two countries will only find a long list of tasks
that demand their joint efforts to address.
It is believed that through close and constructive co-operation,
the world's two major economies can end up with some effective
solutions to economic issues that neither of them can fix
alone.
More importantly, the dialogue provides a needed platform for
each country to grasp the other's priorities. For instance, it was
China's need to press ahead with its market-oriented reform under
the constraints of domestic economic conditions that determined its
current export-centered trade policy, not the other way around.
With such an understanding, it will be more likely that the two
sides can work together to seek real solutions instead of allowing
trade issues to be politicized.
(China Daily September 22, 2006)
