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Liu Zhiqin: Chinese economic success and twists with US


By Liu Zhiqin    Source: CGTN    Published: 2018-3-30

Recently I organized a “mini-forum” and invited four people with different jobs - an old farmer, a middle-aged worker, a taxi driver and a young IT engineer - to use one sentence to describe the past 40 years. Their experiences epitomize tremendous changes in China since the reform and opening-up policy implementation.

During the past four decades, China has reshaped itself and become the second largest economy in the world, and many seek to explore the country’s codes of success. 、

Codes of success

First, China has followed policies worked out by the central government, covering different reforms in various fields. These policies represent the major interests of the nation and aim directly to its target. That`s what`s known as "Chinese character". China developed fast on the right track, because the policies of the CPC are fully in line with the reality of our country and meet the demands of the people and market.

Aiming to serve the people is another reason why China could overcome so many challenges during its rising up. Put the people at the heart when we carry out all efforts to promote the economic reforms, and the core issue for all level of government is to let people live satisfactory lives, this is the mission of the CPC and its cadres.

The third reason is that China has always paid great attention to controlling and preventing risk by building up a “fire-wall“ to safeguard the stability of economic growth. During the past 40 years, we experienced some serious issues like the Asian financial crisis and the American sub-prime crisis, but China performed wonderfully to help get the global economy out of depression.

Goodwill and cleavage

What has the US brought to China in the past decade? Two crises: One in 2008 which dumped China, and the world at large, into chaos, and the other is the ongoing trade war. Both have damaged the Sino-US economy.

But the US does not even feel any regret for its wrong moves, never wants to apologize for the crises spread all over the world.

What has China done in this situation? China has no time to complain but managed to ease trade tensions and pressures imposed by the US.

China`s actions show its openness, inclusiveness and responsibilities. China does not sit and see, and instead made brave deviations to inject 4 trillion yuan in the market, giving confidence to the world.

However, as the US rises up from its subprime mortgage crisis and gives no thanks to China but, instead, launches a trade war against China, which has been strongly condemned by Chinese entrepreneurs. Ironically, the Trump administration talk about "China economic aggression" in the US and label China as a "major threat".

In 2018, China has to put great importance on avoiding the "Trump trap", which means conflicts, disputes, trouble and wars. The trap would cause serious problems to global economic development and that will indeed attract negative growth in the US economy. China should always be vigilant on the uncertainties and distortions of WTO rules.

Maintaining stability while further opening the Chinese market is the only way for China to become stronger, and to cautiously open up financial industries to boost stable, healthy and reliable development will make China more prosperous and attractive for foreign investors.

Liu Zhiqin is a senior fellow of Chongyang Institute for Financial Studies of Renmin University.

Key Words:China, Economy, Development, US  

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