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Forum: Shanghai import expo is good sign

By KONG WENZHENG in Cambridge, Massachusetts | China Daily USA | Updated: 2018-10-18 01:44
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Signboards of the China International Import Expo are seen in front of the Oriental Pearl TV Tower at the Lujiazui Financial District in Pudong in Shanghai, Oct 11, 2018. [Photo/IC]

China, by emphasizing imports and hosting import-centered events, is showing its willingness to take responsibility and solve problems in trade, said a US expert on Monday.

Robert Kuhn, a longtime China expert who produced award-winning TV series on China, added, "China is saying, 'We recognize there are these deficits that have occurred. And now we are addressing the problem.'"

Attending a forum held by Fudan University at Harvard University, Kuhn pointed to the China International Import Expo that will be held in Shanghai in early November as a platform for China to express its willingness to open up its market and create opportunities for foreign businesses.

"This expo for imports is to address all import issues that China has, which is a major factor (of) how China deals with the world," said Kuhn. "It shows China is facing problems."

One of those problems, according to Kuhn, is that the "China model" — with its cheap, hard-working labor, well-constructed infrastructure and logistics systems — has made the country the manufacturing center of the world over the past few decades.

That, in turn, created significant trade surpluses for China, which some countries, such as the US under the Trump administration, were no longer happy about, claiming that trade between China and other countries was imbalanced.

"That's not China's fault," said Kuhn, noting that it is human nature to purchase good products at cheaper prices, something everyone benefits from.

Acknowledging the situation, China has taken the "innovative approach" of hosting the first-ever import expo in the world, showcasing that China is open to buying things it needs, Kuhn said.

The six-day expo, which will start on Nov 5, has attracted around 2,800 businesses from more than 130 countries. It will feature forums on a variety of topics and industries, country-themed promotional events and matchmaking sessions for Chinese and foreign companies.

"I hope it will be very successful economically," said William Overholt, senior research fellow at the Harvard Kennedy School. "I also hope it will be a forum for conversations about how differences on economic policy between different countries can be resolved."

"It (Shanghai) is a very attractive city, which has made extraordinary progress," said Joseph Nye, former dean of the Kennedy School. "That's true for China as a whole, but Shanghai illustrates it extremely well," he said.

The progress that Shanghai and other parts of China have made is making China an even more attractive market for foreign companies, Kuhn said.

China received around $70 billion in foreign direct investment in the first half of 2018, more than any other country in the world, according to Xinhua, a 6 percent increase, as the world overall trended downward.

"The Chinese market is exceedingly important for not just American companies, but for all foreign companies," said Kuhn.

China's opening up enables global companies to enter a robust market and the Chinese economy to see a boost in efficiency as companies advance under competition, Kuhn said, and "that's good for China and good for the world."

Contact the writer at [email protected]

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