China in No Trade War With the US or Europe

The Boao Forum for Asia was held in Hainan Province on April 1-3. Long Yongtu, an Advisory Committee member and former Vice-Minister of Foreign Trade and Economic Cooperation, when interviewed by a reporter from the Financial and Economic Center of China.com.cn, stresses that there is no trade war between China and the U.S. or between China and Europe.

“There is no ‘war’ between the three sides, and the media and the public should be cautious in using the word ‘trade war.’ The exaggeration of trade issues in Sino-U.S. trade will add no benefit to relations between the two sides,” Long believes.

“The truth is that the Sino-U.S. trade is so far so good, illustrated by U.S. exports to China reaching a record high, which certainly relieves the trade protectionist sentiments in the U.S.

“The world economic center is shifting, not has shifted, to Asia, which needs to be emphasized. A reasonable attitude is expected in this process: Asia, including China, should play a more important role in world economy after the financial crisis, but this role cannot be overestimated.”

Long also says, “The U.S. is still the critical engine of world economic growth, and the U.S. economy is in its recovery, which is good news to the world, especially Asia. There is a long way to go in the transformation of a Chinese economy dependent upon domestic demand; export and international trade continue to play an important part. So the recovery of the U.S. economy and the stability of European economy are vital to world economic growth.”

Finally, with regard to issues in state-owned enterprises, Long says, “a chain of measures is being taken by the government to enhance the role of civilian-run enterprises in all areas, a trend attracting wide attention, as well as a mission to be fulfilled with collective efforts.”