With US President Donald Trump having been in the White House for nearly a month, the economic relations between China and the US are also witnessing emergence of new trends gradually.
As China’s economy is expected to continue to slow down in 2017 and bilateral trade will be challenged by anti-globalism, it will be a rugged journey for future economic relationship between China and the US. Besides, China’s tightening of controls over capital outflows and intensifying scrutiny on Chinese investments in Europe and the US have also escalated the challenges for China-US investment.
As for Chinese companies dedicated to overseas investment, challenges also come from political uncertainties from the US side under the new administration.
According to Wu Jianmin, president of East West Bank, companies from both China and the US should prepare themselves with professional knowledge to tackle such challenges in future China-US economic relations and make good use of possible government policies which may further promote bilateral trade.
America companies should fully understand the substance of China’s economic growth, he said. The important factor in promoting China’s economic growth is investment. However, with increasing debt risk, raising interest rates may seem necessary for government to restrain investment.
Other drivers of GDP may also slow down in 2017. China is the world’s second largest exporter, but with the slowdown in global trade, China’s exports may be affected in 2017.
This may mean that China’s overall economic growth of 2017 may be lower than that of 2016, Wu said. Meanwhile, as China has shifted its focus from GDP growth to a more quality-driven economic growth, companies will see a more competitive economic environment in China than before. And this will mean both challenge and opportunities for companies from both China and overseas, he said.
Wu also suggested American government make use of negotiation to open China further to American companies. Although bilateral trade frictions between China and the US may rise in 2017, proper negotiation will bring actual benefits to both sides, he added.
Opinions expressed in the article don't represent those of the Sino-US.com.
(This article is translated and edited by Chunmei.)