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 centre, 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-centred 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 09/22/2006 page4)