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Understanding China’s Strategies in New World Order

Feb 24-2022   



For China, being recognized as a market economy carries more weight than being reckoned as a developing country, says Prof. Yu Miaojie, Secretary of the CCP Committee at NSD and Associate Dean of the NSD, in an exclusive interview.

 

Currently at USD10,000, China’s GDP per capita will soon reach USD12,000, the threshold for becoming a developed country, thereby rendering discussions about its developing-country status inconsequential. Gaining the status of market economy, on the other hand, will bring along favorable treatment in global trade as compared to that for non-market economies, says Prof. Yu.

 

The interview is part of an 11-episode joint production by the NSD and Tencent News in which NSD professors share their take on the global economy. Prof. Yu is Ministry of Education’s Changjiang Scholar Distinguished Professor and PKU Bo Ya Distinguished Professor.

 

Globalization has taken on new forms and China should take a two-pronged strategy to be an integral part, says Prof. Yu. As the WTO’s dispute settlement committee is being crippled by US maneuvers, regional trade cooperation has become a key driver for globalization. Accordingly, China should continue to promote the latter by working on RCEP, China-EU comprehensive investment pact, and CPTPP, while facilitating the reform of the WTO by tabling a proposal of its own initiative and addressing critical elements such as China’s market-economy status and developing-country status, says Prof. Yu.

 

Relative to China’s economic development level, the country justifiably measures up to the criteria of market economy, argues Prof. Yu, adding that it is more an issue of benchmarking and allowance for deviation. For example, countries like the Philippines lag behind the US in terms of marketisation but are accepted as market economies.

 

On China-US trade relations, Prof. Yu remains confident that the two countries will be able to reach a second phase deal, which will be mutually beneficial. The deal might bear strong resemblance to the first phase one and could be valid for two years, estimates Prof. Yu. What he is not optimistic about is the immediate prospect of the US cancelling high tariffs on a range of Chinese products. China, on the other hand, will continue to expand its import from the US while at the same time raising demands to the US concerning such issues as IPR protection based on the principle of reciprocity.

 

With regard to the RMB exchange rate, Prof. Yu believes that it might reach 6.1 vis-à-vis one US dollar by the end of 2022 and achieve a short-term equilibrium amid minor fluctuations. China’s economic growth and prudent monetary policy gives Prof. Yu the confidence in yuan appreciation.

 

Understanding China’s Strategies in New World Order

Feb 24-2022   



For China, being recognized as a market economy carries more weight than being reckoned as a developing country, says Prof. Yu Miaojie, Secretary of the CCP Committee at NSD and Associate Dean of the NSD, in an exclusive interview.

 

Currently at USD10,000, China’s GDP per capita will soon reach USD12,000, the threshold for becoming a developed country, thereby rendering discussions about its developing-country status inconsequential. Gaining the status of market economy, on the other hand, will bring along favorable treatment in global trade as compared to that for non-market economies, says Prof. Yu.

 

The interview is part of an 11-episode joint production by the NSD and Tencent News in which NSD professors share their take on the global economy. Prof. Yu is Ministry of Education’s Changjiang Scholar Distinguished Professor and PKU Bo Ya Distinguished Professor.

 

Globalization has taken on new forms and China should take a two-pronged strategy to be an integral part, says Prof. Yu. As the WTO’s dispute settlement committee is being crippled by US maneuvers, regional trade cooperation has become a key driver for globalization. Accordingly, China should continue to promote the latter by working on RCEP, China-EU comprehensive investment pact, and CPTPP, while facilitating the reform of the WTO by tabling a proposal of its own initiative and addressing critical elements such as China’s market-economy status and developing-country status, says Prof. Yu.

 

Relative to China’s economic development level, the country justifiably measures up to the criteria of market economy, argues Prof. Yu, adding that it is more an issue of benchmarking and allowance for deviation. For example, countries like the Philippines lag behind the US in terms of marketisation but are accepted as market economies.

 

On China-US trade relations, Prof. Yu remains confident that the two countries will be able to reach a second phase deal, which will be mutually beneficial. The deal might bear strong resemblance to the first phase one and could be valid for two years, estimates Prof. Yu. What he is not optimistic about is the immediate prospect of the US cancelling high tariffs on a range of Chinese products. China, on the other hand, will continue to expand its import from the US while at the same time raising demands to the US concerning such issues as IPR protection based on the principle of reciprocity.

 

With regard to the RMB exchange rate, Prof. Yu believes that it might reach 6.1 vis-à-vis one US dollar by the end of 2022 and achieve a short-term equilibrium amid minor fluctuations. China’s economic growth and prudent monetary policy gives Prof. Yu the confidence in yuan appreciation.