Trade War: Experts Analyze The Essence Of Sino US Trade War And Reconstruct China's Competitiveness In The Future

What is the essence of Sino US trade war? How should China respond? How to reconstruct the competitiveness of China in the future? Yesterday, at the annual financial forum of the 2019 (second) Renmin University of China business school in Beijing, experts attended the seminar to discuss these issues.


Chief researcher of China International Economic Exchange Center, Zhang Yansheng, former Secretary General of the academic committee of the national development and Reform Commission, believes that the essence of Sino US trade war is that the United States should safeguard its global hegemony and global leadership. At present, it is a great power game that has not changed for a hundred years. China must maintain its common sense and do well in its own affairs. Do not waste the historical opportunities brought about by great changes.


The theme of this forum is "new pattern, new economy and new finance". It aims to build a high-quality platform for cross-border cooperation and cooperation between industry and capital, theory and practice, government and market. The new pattern refers to the new era; the new economy refers to the intelligent economic form dominated by creative knowledge and creative industries as the leading industry; new finance refers to the marketization of financial elements, the diversification of financial entities, and the rapid iteration of financial products.


How are Sino US relations under the new pattern, the new economy and the new financial environment? What is the possible impact on China's economy? Zhang Yansheng responded that there is widespread anxiety in today's world because of lack of motivation, lack of governance, lack of balance and lack of cooperation. Lack of motivation is due to the lack of technological innovation and cooperation. At present, the rise of world technology protectionism hinders scientific and technological innovation and cooperation.


The essence of Sino US trade war is considered to be a struggle for development. Zhang Yansheng believes that the United States should maintain its global hegemony and global leadership.


What is the impact of the significant changes in the external environment on China's economy? In this regard, Zhang Yansheng said that tariff war to build the United States the priority of the global industrial chain, science and technology war to form a world, two systems. But China does not want to fight or fight because China has enough resilience, great potential and room for maneuvering to withstand any big country challenges.


Zhang Yansheng analyzed that China and the United States were irrational confrontations before 2035, and then really entered the stage of strategic cooperation and dialogue.


Game with master is always progress. The process is more important than the result, and we should strengthen ourselves in the process. Zhang Yansheng believes that at present, a big power game that has not changed for a hundred years, China should maintain a common mind, respect common sense, rules and logic, maintain historical patience, strategic determination and bottom line thinking, and do well in its own affairs, so as not to waste the historical opportunities brought about by great changes.


Under external pressure, how can China promote technological innovation and rebuild competitiveness in the future? Zhang Yansheng's proposal is to create a supportive environment and conditions, so that innovation can become the first driving force. The key to disruptive innovation, key core technological innovation and market oriented technological innovation is to develop a first-class innovation environment, build world-class enterprises and first-class universities, play a better role in the government and create a better market environment and business environment.


For the standards of world class universities, Wu Xiaoqiu, vice president of Renmin University of China and director of the Institute of Finance and securities, thinks that the world's first class universities should be inclusive, have the spirit of exploration and innovation, and become the main force in the innovation and transformation of human society.


Wu Xiaoqiu also talked about his views on financial innovation. He believes that China's finance is currently in the era of diversification, which is driven by three forces, namely, the power of technological reconstruction, the power of market disintermediation and the difficult choice of opening up.


"The power of technology to restructure China's finance is huge, resulting in subversive results in quite a number of fields, that is, changing financial formats, changing financial awareness, and even changing the theoretical framework behind finance."


Wu Xiaoqiu said that the most fundamental force in the transformation from traditional finance to modern finance is market disintermediation. The core of traditional finance is financing, and its investment function is weak. It mainly completes financial activities through financial intermediaries and financial institutions. Because of the development of financial liberalization, market disintermediation is accelerating significantly through the market turning around financial intermediaries to achieve financial activities.


Financial disintermediation is the basic trend and basic force of modern finance. In the future, both financing and investment will go to the market. The market provides enough transparency for the financial system, providing information symmetry and creating a pricing power.


What is opening up to the financial market? Is it an open financial market or a financial system, that is, the free flow of capital? Wu Xiaoqiu explained that it is impossible for a country to achieve a free choice between capital flow and independent monetary policy and exchange rate stability. It is a difficult choice to make a choice among them. China is a big country. Independent monetary policy is the basic premise.