Though facing a largely uncertain prospect for its economic recovery after the 2008 financial tsunami, the US has for five years worked strenuously to promote economic restructuring, lay out plans for developing new industries globally and shore up its potential competitiveness for future growth.
Commenting on the recent US-China 2022 report, He Weiwen outlines how bilateral trade between China and the US is expected to grow over the next ten years and how this will be beneficial for both countries.
China’s declining GDP has sent shockwaves through the financial sector as analysts begin to question China’s long-term economic strategy. As Minxin Pei points out, “zombie firms,” or companies primarily supported through bank loans and government subsidies, are complicating China’s sustained growth. By eliminating these firms and instituting reforms, China can bolster innovation and ensure the opening of its economic markets.
Although China’s slowing growth has caused a stir amongst analysts; He Weiwen explains China’s growth rate is not of concern.
Thanks to the central government’s stabilization policies, Chinese enterprises have accelerated production to make up the inventory rather than slowing down production to digest the inventory. The macroeconomic operation will continue the rising trend and China’s GDP growth in 2013 may be faster than 2012.
While avoiding the label of “currency manipulator,” China’s currency, the renminbi, continues to face criticism by the US Treasury Department for being “significantly undervalued.” Now, an analysis of global trade data seeks to end the correlation between trade surplus and currency exchange rates.
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