The International Finance News on October 21 published an article with the title Intensive Economic Diplomacy Rewrites Trade Pattern expounding the views of Ba Shusong, deputy director of the Finance Institute of the Development Research Center of the State Council, Zhang Xiaoji, director of the foreign economy research department of the Development Research Center of the State Council, Yao Dingkang, president of China US Net Group Inc, and Zhang Hanlin, dean of the WTO Institute of University of International Business and Economics.

Ba Shusong: America found the wrong scapegoat

Economic common sense tells us that no one country can afford to let its trade deficit to expand indefinitely, even for countries like the United States, which enjoys the status of US dollar as the reserve currency, high productivity and young population structure.

The United States has only two options. The first is to continue carrying out tight macro economic policies, including reducing financial deficit, raising interest rate to cut down consumption so as to reverse the situation of continued lower domestic savings than domestic investment. This apparently entails a period of painful adjustment in economy and politics, as well as possible considerable political resistance.

Therefore, an alternative by which American politicians dodge the problem of internal economic adjustment is to push the devaluation of the US dollar. To place the hope of solving America's current account deficit entirely on dollar depreciation, the dollar must at least be devalued by 30 to 40 percent, a scenario America does not wish to see either. As a matter of fact, precipitate dollar depreciation will cause inflation and sharp increase of interest rate level in the United States. Therefore America hopes that other countries' currencies appreciate in order to ease the pressure on dollar devaluation. Objectively speaking, this is one of the basic reasons the United States actively works for RMB appreciation.

Zhang Xiaoji: Export benefits are not entirely China's

Judged objectively, China has done nothing unfair in exportation. Since the textile production of countries such as Thailand, Philippines and Indonesia has moved to China, these countries' exports to America have decreased and products from China increased correspondingly.

Compared with Europe, the United States and neighboring Asian countries, low labor cost and gradually enhanced technological level induce lots of international orders into the China. For the time being, China is not the sole beneficiary of its textile exports. There are also many companies of the importing countries.

The actual profits of Chinese textile manufacturers are only 10 percent within the whole chain. Ninety percent of the profits go to various links of the chain such as the brand owners, wholesalers, distributors and retailers. Therefore, if European and American countries blindly hit on Chinese textiles, the victims would not only be China's domestic textile manufacturers and normal bilateral trade mechanism, but also those importers and retailers in their own countries.

Yao Dingkang: Chinese-funded businesses should join US chamber of commerce

US commerce chambers are open to all companies in America or those that have business relations with America. Joining US commerce chambers, one can gain much information and help, for example, discounts when participating in exhibitions, to be able to take part in professional market analysis workshops, opportunity to secure government orders and legal assistance.

Although there will always be American manufacturers' anti-dumping against Chinese manufacturers, commerce chambers of both countries can always find each other's advantages and the balance point of the two sides' interests. When the problems between commerce chambers of the two countries are solved, economic relations and even the political relations between the two countries will naturally be improved.

Zhang Hanlin: IT industry all the more needs to be alarmed to trade disputes

International trade disputes will increase along with China's rapid economic development. China is the largest source country for US trade deficit. The focus of the recent disputes between China and the United States over value-added tax rebate in the semiconductor area is a matter of national treatment principle. Therefore, Chinese IT industry should be more alarmed to trade disputes.

According to the development pattern of world trade disputes, China now sees trade disputes in the goods trade area but in the future disputes will gradually move to the service trade area. Three focal sectors of in which trade disputes that tend to emerge are financial service, telecommunication service and distribution service. Future trade disputes may concentrate in the telecommunication area.

By People's Daily Online