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No blocks to investment

Publication Date : 18-07-2012

 

Meeting with United States business leaders yesterday, Chinese Premier Wen Jiabao said that the two countries should seek to expand their common interests and join hands to cope with the current global economic woes.

Wen's remarks are in a stark contrast to the hawkish China-bashing that has been a constant theme of the US election campaigns.

Admittedly, China and the US have many differences on political, economic and security fronts. But their efforts to stabilise the global economy should not be derailed by presidency targeted political interests.

In recent years, increased bilateral consultations and communication have produced greater mutual understanding.

At the China-US Strategic and Economic Dialogue in May, the two sides reached consensus on core issues such as the expansion of Chinese investment in the US and China's financial liberalisation, which testifies to a shared interest in pushing forward their economic and investment relations.

Maintaining such a positive momentum in their relations will ensure that they provide concerted support to anchor a global economic recovery.

As Wen said yesterday, both countries need to remain sober-minded to handle the current economic difficulties.

However, with the election looming ever closer, politicians in the US seem more interested in blaming China for their own failure to revitalise the US economy than in improving the bilateral economic and investment relations that would help create jobs and stabilise growth in the US.

Regrettably, despite the progress of Chinese investment in the US in recent years, China's accumulative investment in the US was still only US$6 billion by the end of 2011, less than 1 per cent of the foreign direct investment stock of the US. In contrast, US investment in China was $3 billion in 2011 alone.

Over the past decade, especially in the recent couple of years, several major Chinese companies have gained a foothold on the US soil, creating jobs for local communities and showing that companies from China, like those from other parts of the world, are dedicated to improving local people's livelihoods. However, US distrust has prevented Chinese companies from making major investments.

The US should appreciate the fact that opening up to more Chinese investment would be in the interests of the American people.

 

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