（April 12, 2022  Charlotte, North Carolina）

Ambassador Mark Erwin,

City Councilman Greg Phillips,

Mr. John Galles,

Mr. Richard Yang,

Mr. Lj(Ljubomir) Stambuk,  

Mr. Michael Wang,

Ladies and Gentlemen

I would like to thank Carolina World Trade Association (CWTA)，Carolina Chinese Chamber of Commerce (CCCC), and World Affairs Council of Charlotte (WACC) for hosting this luncheon. It provides a great opportunity for us to explore ways to promote China-US economic and trade cooperation at the sub-national level.

To have a discussion of China-US economic and trade relations, I believe some knowledge about the Chinese economy and its latest development would be helpful.

Over the past 40-plus years, China has become the world's second largest economy, No.1 manufacturer, top trader in goods, the biggest holder of foreign exchange reserves and the second largest consumer market. China's growth is second to none in the world in terms of growth rate and duration, and it has contributed more than 30% to global growth for many years in a row. Despite the triple pressure of shrinking demand, supply shocks and weakening expectations brought by COVID-19, Chinese economy has shown strong resilience and great vitality. The fundamentals of steady and long-term growth remain unchanged. In 2021, China's GDP grew by 8.1% from the previous year and reached $17.7 trillion, accounting for 18% of the global economy. China's per-capita GDP has exceeded $12,500, higher than the world’s average level. For this year, we have set a growth target of around 5.5%.

China owes its remarkable economic achievements to reform and opening-up. In recent years, China has introduced a host of new policies to further open up. We have fully implemented the system of pre-entry national treatment plus a negative list management for foreign investment. The number of special management measures for foreign investment access has been reduced from 93 to 31. Items on the negative list for foreign investment access have fallen by two-thirds in the past four years. Agriculture and manufacturing have been basically liberalized. Foreign equity cap has been lifted for the sectors of insurance, securities, fund management and futures services, with Citigroup and JP Morgan among the first beneficiaries. In 2021, China attracted $179 billion of foreign investment, and its international trade reached $6.05 trillion, both hitting a record high. In the meantime, we have enhanced protection of intellectual property rights by revising laws and regulations, strengthening law enforcement, and building awareness of the spirit of contract. These facts and figures are a vote of confidence in China's business environment.

Going forward, China will open its door even wider. We will open up at a higher level with lower tariffs, a shorter negative list, easier market access, more transparent market rules and a more attractive business environment. In the next decade, China's cumulative import of goods is expected to exceed $22 trillion. By 2035, China’s middle-income group will reach 800 million. A more open China will surely provide greater business opportunities for the world.

Friends,

As China-US relations have been going through a cold snap in recent years, our economic and trade relations have borne the brunt. Trade issues have been politicized and even weaponized. The trade war, industrial war and technological war have seriously poisoned the atmosphere of cooperation and eroded the interests of the industry and the people. Despite all this, China-US trade hit a record $755.6 billion in 2021, up by 28.7 % year on year. Among that, China’s import from the US reached $179.5 billion, up by 32.7%. China is among the top five export destinations for 47 US states. According to the US-China Business Council's survey, 95% of its member companies are profitable in China, and for more than 75% of its member companies, profitability in China was the same or better than the company’s overall operations. It has been well proved that the integration of interests between the two countries cannot be easily undermined, and the win-win nature of China-US economic and trade cooperation cannot be denied at will.

China will continue to take economic development as its central task for a long time to come, which is essential to our national rejuvenation, while the US is promoting a "worker-centric" economic agenda. At the same time, both countries bear important responsibilities as stabilizers and engines of the world economy, as it goes through tremendous changes and struggles to recover from the pandemic. To cut off ties or to open up, to build walls or to dismantle walls, to decouple from each other or to get integrated with each other, China and the US must make the right choice. To deliver greater benefits to the people is the biggest common ground for our two countries. In a win-win and all-win spirit, we need to focus on making the pie bigger and dividing it well, and achieve the sound and stable development of China-US economic and trade relations. We welcome more American companies to do business in China and share in the dividends of China's development. We also hope that the US will continue to open its door to Chinese companies.

North and South Carolinas have maintained close economic and trade ties with China, and there is a broader space for cooperation in the future. In the past five years, China has remained one of the top three trading partners for the two states, accounting for a considerable share of their total trade volume. More than 100 Chinese enterprises have invested in both states, among which Haier, Jushi, JN Fibers, Uniquetex have been reporting excellent performances. China is adjusting its economic structure, boosting advanced manufacturing, modern agriculture and green industries, and promoting the development of new technologies, new business forms and new growth models. North and South Carolinas have a strong industrial foundation, outstanding scientific and technological innovation capabilities, and great advantages in automobile manufacturing, biotechnology, logistics, chemical industry and textile industry. The two sides should seize opportunities, identify common ground and carry out more practical cooperation. To leverage the cluster effect, the business community of Carolina can also reach out to the states in the southeast to explore business opportunities with Chinese provinces and cities for greater outcomes in practical cooperation. We also hope that you can let more people know your cooperation stories with China to help remove political obstacles and create favorable conditions for China-US economic and trade relations.

As a Chinese saying goes, the flame burns high when everyone adds firewood to it. It is hoped that the business community of Carolina will act to add firewood to our cooperation, so as to create more tangible benefits for both sides. Let's join hands and work together for this goal!

Thank you all.