(From U.S. Commerce Dept., 25th U.S.-China Joint Commission on Commerce and Trade Concludes with Key Outcomes)
The 25th session of the U.S.-China Joint Commission on Commerce and Trade (JCCT) took place in Chicago during the week before Christmas. It was hosted by U.S. Secretary of Commerce Penny Pritzker and U.S. Trade Representative Michael Froman. The Chinese delegation was led by Vice Premier Wang Yang.
Established in 1983, the JCCT is the primary forum for addressing bilateral trade and investment issues and promoting commercial opportunities between the United States and China. High-level plenary meetings are held annually and are co-chaired by the U.S. Secretary of Commerce, the United States Trade Representative, and the Chinese Vice Premier in charge of trade and investment issues. Sixteen JCCT Working Groups meet throughout the year to address topics such as intellectual property rights, agriculture, pharmaceuticals and medical devices, information technology, and travel and tourism. (Press Release: U.S. Commerce Secretary Penny Pritzker, U.S. Trade Representative Michael Froman Conclude 25TH Session of the U.S.-China Joint Commission on Commerce and Trade, Dec. 18, 2014)
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While the U.S. Commerce Department has posted the speeches of the U.S. delegation, it has not posted that of the Chinese delegation. Below is the translation of Vice Premier Wang Yang’s speech on China-US trade talk from the official publication of PRC Department of Commerce, for Chinese transcript, please see HERE. The video of the speech can be accessed HERE (Differences between official publication and video recording has been pointed out within the text).
Highlights of Vice Premier Wang Yang's keynote speech:
1. The strong domestic base present in China and also US support further development of economic partnership.
2. China will try to avoid Thucydides's trap; cooperation is cheaper than confrontation.
3. China has chosen to embrace and basically accept the pre-established international business normative system led by US without intention of challenging, however China also asking US for better studying, understanding China’s reality and being respectful to China’s decision.
4. China is developing new strategy for China’s New Normal Economy condition (see HERE; "First, the economy has shifted gear from the previous high speed to a medium-to-high speed growth. Second, the economic structure is constantly improved and upgraded. Third, the economy is increasingly driven by innovation instead of input and investment, he added." (Xi's 'new normal' theory may set historical landmark, Xinhua, Oct. 11, 2014). This new model is expected to generate new opportunities for certain sectors. China also reforming its normative system to better accommodate foreign business’s lawful interests and rights.
What we might learn from Wang Yang’s keynote speech:
1. China is willing to take a constructive approach to embrace and join current emerging global trade and commerce normative system, which essentially is a crucial part of further developing the central line of China’s economy building.
2. As part of its new strategy under China’s New Normal Economy Condition, China will liberalizing and reforming some outdated normative systems to better accommodate the business needs for various capital structures.
3. There was an avoidance of the intense competition between China and the U.S. over the control of the structuring of global trade. While there appears to be a willingness to accept current trade structures, China remains strongly committed to participate meaningfully in the further development fo that system.
Bigger and Wider for the Trail of China-US Economic Partnership
Keynote Speech, Wang Yang
(Dec 17th 4Pm Central Time, Chicago)
Dear Secretary Ms. Pritzker, Representative Mr. Froman, ladies and gentlemen:
It is a great pleasure for us to gathering in the beautiful city Chicago to attend China-US Trade Talk. On behalf of Chinese government, we are grateful for Chicago Global Council’s thoughtful arrangement for this event. At the celebration of Sino-US diplomatic relation for the 35 years anniversary, I would like to talk about “US-China: Global Economy Partnership [Conference Translator: a shared fusion of economic leadership]” to set the cause for future business relation between two counties.
First, the economic partnership is not a forced marriage but as the result of mutual acceptance from two side of the markets. Just as our friends are chosen by ourselves not designed by our parents; the current Sino-US economic relation is decided by business with commercial consideration. Governments merely responded to markets, which is a deed to win the hearts and votes from the people and make the economic partnership between two counties. Just last month when President Obama was visiting China, Xinhua News and Tengxun jointly conducted an online poll participated by 9 million net users with one of the questions stated “on what issue you wish US and China cooperate with each other.” The top answer, agreed by 45% of participators, was “two states should increase cooperation between trade and commerce,” Coincidently, US-China Trade Committee’s poll showed 96% of interviewed US business owners still considering China as one of the five large markets for global strategic investigation, the rate reached in new high for the past five years.
Second, the China-US economic partnership opened a new page of the history for the cooperation between our two countries with different systems. China and U.S. were separated by the trajectory of development with their own different backgrounds of state conditions, social systems and ideologies for almost 20 years. When President Nixon visit Beijing 42 years ago, he frankly told Primer Zhou enlai that “I come for US interest.” Last generation of state-men bravely broke the system and ideology wall between two nations. It started new a new page of the history for Sino-US economic partnership, which not only benefits people of two counties but also rest of the world. The past 35 years of diplomatic relationship between US-China had already proved that countries with different social system not necessarily fall into the Thucydides's trap, the governing systematic and cultural differences shall not became the obstacles for us to become economic partners with mutual beneficiary relation. Strategic vision still required for US’s China policy as China continuing expanding and embracing global economy. If guided by history, we will see both confrontation and cooperation bearing cost, but cooperation is much cheaper and more efficient than confrontation. In order to between managing our differences, resolving contradictions for a sustainable economic partnership, we need to have more cooperation, and establish strategic mutual agreement on mutual interests.
Third, [conference translator: although US and China are the partners of global economy but US wholly lead the world. This is same as the Chinese published transcript] when China started to open up, US was already playing the leading role in world economy norms and systems. By opening up, we (China) willing to embrace and join this system, and basically accept these rules; we willing to play constructive role in the international economy system. Although China ranked No.2 of world economy, we are still account 55% of US GDP, and GDP per person is 1/8 of US. {Here one sentence is missing from publication and translator was getting behind from the speech, so based from the video recording of the conference the missing sentence seems to be “according to the minister of Finland (Finance?) combined population of two country we are having the largest population in the world.”} More importantly, China was clear that key technology drive the world economy development, and critical rules shape world economy system are still led by US. Thus, China has no intention or capacity to challenge US leadership position. During the cooperation, we are merely asking US to communicate with China for better learning of China’s stance (idea), understanding of China’s condition; and being respectful to Chinese people’s choice of path; and not let the difference between political systems serve as the obstacle for our economic cooperation. {The following sentences are missing “also known that many America friends have questions of their minds. As Chinese economy become stronger and more competitively, will economy punishment last long? As Chinese economy grow moderately, will China offer more opportunities to US companies? (Inaudible) as China strengthen the supervision and target foreign company executives (inaudible). I can tell you clearly although our economy strength changed, our policy of developing US-China economy relationship remained unchanged.” The format and content of our cooperation may change but the nature of win-win cooperation will not change. Since cooperation already benefited both sides, what reasons do we have for not continuing it.}
First, China will continue to pursue win-win strategy of open up with implementation of new round of high level open up. In order to promote reform, we will adhere to the rules within WTO framework, supports cooperation between bilateral, multi-laterals, regional and sub-regional opening up, expand covering interest with other countries, reform market accessibility, custom supervision, quarantine and inspection, and other management system; expedite negotiation on environment protection, investment protection, government purchasing, electronic commerce to formulate a global standard of high level free trade network.
Second, China will steadfastly push forward the economic structure adjustment for more balanced, coordinated and sustainable development. The recent Central CPC Committee Working meeting on economy had clearly pointed out, Chinese economy development shall centered on improving the quality and efficiency of the economy; shall actively adapt to the New Normal of Chinese Economy, and pay more attention on the economy working methods and structure changes. China’s economy development model will shift from Factor-Driven Economy into Knowledge (creativity) Drive Economy with more focus on sustainable development. We are giving priority to the service sector, hot spots such as: retirement, tourism, education, healthy, cultural and sports. We are encouraging internet, electronic commerce and other newly emerged sectors for domestic consumer market. We are adapting more aggressive importation strategy in the area of advanced technology, key machinery compartments, clean energy, and middle-high level consumer products. We will expedite the process of eliminating outdated productivity for a more heathy economy structure. Chinese consumer market will expanding, which means more demands for foreign technology, machinery, and service.
Next, China will speed up in improving socialist market economy legal system in order to create a rule of law environment compatible with global standard. We will accelerate the unification of laws and norms regarding domestic and foreign business for a fair, open and transparent market normative system; and abolish regulations and practice that stand between the fair competitions, ensure different ownership structures’ fair, open, and just participation of market competition with equal protection of law. We support regulations in a civil and lawful manner; and new regulation system with improved due process, fully ensure foreign business’s rights to information, expression, supervision and remedies. We will deepen judicial reforms on the area of foreign business regulation by further establishing IP law courts, IP protection mechanism, simplifying the IP application, and provide equal protection to the domestic and foreign companies rights in accordance with law. Reforming foreign business legal service by providing convenience to foreign business when they seeking legal actions, lawyers, translations in China.
Last, I would like to emphasize that a mature economic partnership requiring the safeguard of institutionalization. Currently US-China has almost 90 governmental cooperation projects. JCCT (Joint Commission on Commerce and Trade) is both a distinguisher of problems and propeller of cooperation.
John D. Rockefeller once provided that “A Friendship found on business is better than a business found on friendship.” China-US economic partnership is founded on mutual and wide interests, which is strong and enduring for the challenges of international landscape. The economic cooperation is mainstream, conflicts always exists just like waves in the river all the time. We shall not either let our views blocked by ancient past, or using microscope to picking issues; we should using a telescope to look ahead. I believe with those who has vision and wisdom, the ship of China-US trade and economy cooperation would marching on toward a shore of win-win. Thank you!
中美经济伙伴之路越走越宽广
——汪洋副总理在中美商业关系论坛上的主旨演讲
（12月17日下午4点，芝加哥）
尊敬的普利兹克部长，弗罗曼大使，达尔德大使，女士们，先生们：
很高兴与大家相聚在美丽的芝加哥，共同出席中美商业关系论坛。我谨代表中国政府，对芝加哥全球事务委员会精心组织这场活动表示衷心感谢！向长期致力于中美经贸合作的各界人士致以崇高敬意！
中美商业关系是一个常讲常新的话题，有关论述汗牛充栋。在两国庆祝建交35周年的时候，大家以“美国与中国：全球经济的伙伴”为主题，把脉中美商业关系的走向，具有重要意义。刚才，三位美方同事发表了精彩的演讲，给我很多启发。这里，我愿谈几点个人看法：
第一，经济伙伴不是两国政府的“拉郎配”，而是市场主体两情相悦的结果。如 同我们生活中的朋友都是自己选择而不是父母指定的，中美今天的经济伙伴关系也是双方企业从商业利益考虑做出的自主选择。政府只是顺应市场主体的愿望，做了 得人心或得选票的事，从而使我们成为了经济伙伴。上个月，奥巴马总统访华期间，中国新华国际网和腾讯网联合开展了一项民意调查，有近9万网民参与。其中一 个问题是，“你最希望中美在哪些问题上联手？”排在第一位的答案是，“两国应在经贸领域加强协调”，比例达45%。无独有偶，今年美中贸易全国委员会的一 项调查显示，96%的受访美国企业仍将中国作为全球战略投资规划的五大市场之一，达到五年来的峰值。
第二，中美成为经济伙伴，开创了不同制度大国间互利合作的历史。中 美两国国情和发展阶段不同，社会制度和意识形态各异，我们曾经为此隔阂了20多年。42年前，尼克松总统首访北京时，十分坦率地对周恩来总理说，“我是为 美国利益而来的”。那一代政治家以巨大的勇气打破了制度和意识形态的坚冰，开创了中美互为重要经济伙伴的历史，不仅造福两国人民，而且造福世界。中美建交 35年的历史证明，不同社会制度的大国之间没有陷入“修昔底德陷阱”的必然，制度和文化上的差异阻挡不住双方成为互利共赢的经济伙伴。当前，在中国全面融 入全球经济并且经济总量不断扩大的背景下，美国如何对待中国，仍然需要有战略眼光。历史已经证明，对抗与合作都是有成本的，但合作的成本更低、效益更高。 有加强合作、互利共赢的战略共识，那么我们就能更好地管控分歧、解决矛盾，就会成为可持续发展的经济伙伴。
第三，中美是全球经济的伙伴，但引领世界的是美国。中 国实行改革开放的时候，美国已经主导了世界经济的体系和规则。中国对外开放意味着我们愿意加入这个体系，基本承认这些规则，也愿意在国际经济体系中发挥建 设性作用。虽然中国经济总量已位居世界第二，但仍然只有美国的55%，人均GDP只有美国的1/8。更重要的是，引领世界经济发展的关键技术、塑造世界经 济秩序的各种规则仍然由美国主导。对此，我们有清醒的认识。中国既没有想法也没有能力挑战美国的领导者地位。我们只是要在与美国的合作中，让美方能更好地 了解中方的想法，理解中方的国情，尊重中国人民的道路选择，不让政治制度的差异成为阻隔经济合作的障碍。
首先，中国将继续奉行互利共赢的开放战略，实施新一轮高水平对外开放。我们会坚持世界贸易体制规则，坚持双边、多边、区域次区域开放合作，扩大同各国各地区利益汇合点，改革市场准入、海关监管、检验检疫等管理体制，加快环境保护、投资保护、政府采购、电子商务等新议题谈判，形成面向全球的高标准自由贸易区网络，以开放促改革。
其次，中国将坚定推动经济结构调整，促进经济更加平衡、协调、可持续发展。刚 刚闭幕的中央经济工作会议明确提出，中国经济发展将坚持以提高经济发展质量和效益为中心，主动适应经济发展的新常态，把转方式、调结构放在更加重要的位 置。中国将从要素驱动为主转变到创新驱动为主上来，更加重视发展的可持续性。我们要优先发展服务业，大力培育养老、旅游、教育、健康、文化、体育等消费热 点，鼓励互联网、电子商务等新兴产业发展，深挖内需发展潜力。实施更加积极的进口战略，增加先进技术设备、关键零部件、清洁能源和中高端消费品进口。加快 淘汰制造业落后产能，使产业结构更加合理。中国消费市场的规模将持续扩大，对国外先进技术、设备、服务的需求更加旺盛。
再次，中国将加快完善社会主义市场经济法律制度，营造国际化法治化营商环境。加 快统一内外资法律法规，建立公平开放透明的市场规则，废除妨碍公平竞争的各种规定和做法，保证各种所有制经济公开公平公正参与市场竞争、同等受到法律保 护。坚持严格规范文明执法，创新执法体制，完善执法程序，充分保证外国企业的知情权、表达权、监督权、救济权。深化涉外司法改革，推进知识产权法院建设， 完善知识产权司法保护工作机制，简化知识产权授权确权程序，严格依法平等保护中外企业的权益。强化涉外法律服务，积极为外国企业在华获得司法救济、律师服 务、翻译服务等提供必要的便利。
最后，我要强调的是，成熟的中美经济伙伴关系需要机制化的保障。目前，两国有90多个政府间合作机制。商贸联委会既是解决问题的“灭火器”，更是促进合作的“推进器”。举办联委会的目的，就是要为两国企业务实合作营造良好的环境。
女士们，先生们：
洛克菲勒说过，“建立在生意上的感情，远胜过建立在感情上的生意”。基于广泛共同利益上的中美经济伙伴关系，是牢固而持久的，能够经受住国际风云变幻的 考验。中美两国经济关系中合作是主流，分歧是永远存在的，就像滔滔大河中难免有几朵浪花。我们既不能被乱花迷眼，也不能被浮云遮眼，不能只拿着显微镜去挑 刺，更需要端起望远镜去眺望。我相信，有智慧、有担当的两国有识之士，一定会为中美经贸合作这艘大船掌好舵、摇好桨，使它沿着正确的航道破浪前进，直达合 作共赢的彼岸！ 谢谢大家！
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