SOURCE / ECONOMY
China-US financial cooperation holds potential despite US uncertainties
Published: Jan 04, 2025 03:19 AM
China US

China US


Since middle December 2024, interactions and communications between China and the US in the economic and financial sectors have increased. The China-US economic and financial working groups held their seventh meetings. The two sides agreed to extend the Agreement between the US and China on Cooperation in Science and Technology.

The future of financial investment cooperation between China and the US holds some uncertainties but also significant opportunities. In the current context, it is particularly important to maintain their communication and dialogue mechanisms. Cooperation between the two countries in the field of financial investment is of significance.

On December 18, in response to a question about US Congressional legislation aimed at restricting American investments in China, Chinese Foreign Ministry spokesperson Lin Jian noted that China-US economic and trade cooperation always benefits each other and the people of both countries.

To overstretch the concept of national security and deliberately obstruct normal economic and trade exchanges contravenes the principles of market economy, fair competition and free trade, which the US side claims to champion. Such moves by the US destabilize global industrial and supply chains and do not serve any party's interests, Lin said.

To keep the US investment environment stable and predictable is crucial for financial investment cooperation between the two countries. In recent years, many Chinese companies that intended to go to the US for financing and stock listing have encountered a series of restrictive policies in the US have made Chinese companies increasingly cautious about investment in the US.

In this sense, unreasonable US government measures to suppress US-listed Chinese companies have posed serious challenges to economic cooperation between China and the US.

Chinese companies investing in the US need a relatively stable market environment in order to formulate long-term development strategies. Frequent policy revisions create uncertainty for businesses. Therefore, the US government should place greater emphasis on stability when formulating policies, trying to foster a favorable environment for businesses.

The monetary policy of the US often prioritizes its domestic interests. Yet, as a major global financial power, US policy decisions significantly impact the international market. In order to adapt more effectively to the evolving global economic landscape, the US needs to strengthen information communication with other countries, including China.

Trade and finance cooperation is expected to be more closely intertwined in the future, and any trade tensions could trigger a spillover effect in the financial and investment sector.

China remains committed to expanding its opening-up policy and promoting investment cooperation with the US and striving to improve the business environment in order to pursue mutually beneficial opportunities amid complex global circumstances. By strengthening communication and cooperation, China and the US are expected to achieve greater benefits and win-win outcomes.

The financial investment collaboration between China and the US continues to present significant opportunities and untapped potential for further development.

A stable policy environment and solid foundation of cooperation are essential for both countries to jointly address future challenges and achieve sustainable economic development. The cooperation between China and the US is not only related to the economic interests of the two countries, but will also have a profound impact on the stability and development of the global economy.

The author is vice chairman of the China Society for World Trade Organization Studies in Beijing and former president of the research institute of China's Ministry of Commerce. bizopinion@globaltimes.com.cn