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Shanghai Daily News Digest

Participating in Global Economic Governance with Import Strategy   2018-11-15

 

 

Xue Anwei, Institute of World Economy, Shanghai Academy of Social Sciences In May 2017, General Secretary Xi Jinping announced at the Belt and Road Forum for International Cooperation that China would hold the China International Import Expo (CIIE or the Expo) starting from 2018. The CIIE marks a new stage for the opening-up of China. By taking the opportunity of the Expo, China will make the best of imports to provide “convenience” for other countries. The import strategy will drive China to play a bigger role in global economic governance. First, we demonstrate our determination. The CIIE represents China’s determination to open up further to the outside world. At the opening ceremony of the Boao Forum for Asia Annual Conference 2018, President Xi Jinping pointed out, “China's door will never be closed. It will only open still wider,” signifying an opening attitude of China. Consumption is one of the important purposes of creating wealth, and import also serves as an important purpose of export. China does not deliberately pursue a trade surplus. The long-term surplus is the inevitable result of factor structure and trade structure of China. As the overall economic level of China improves, import needs to play a more significant role in the strategy. China sincerely hopes to expand imports and achieve a positive balance of current accounts, but the opening-up should be bidirectional. The solution to the deficit should control both imports and exports. Under the background of trade protectionism advocated by the US, the free trade proposed by China is clearly embodied at the CIIE. It is China’s sincere hope to open up further to the outside world and take proactive participation in the world economy through the holding of the Expo. Second, we expand the influence. “Big Market” is a significant advantage of China, and the import strategy is conducive to expanding China’s international influence. In the context of the continued downturn in the world economy, the “Big Market” of 1.39 billion people is one of the most prominent advantages of China. As socialism with Chinese characteristics has entered a new era, the principal contradiction facing Chinese society has evolved. What we now face is the contradiction between unbalanced and inadequate development and the people’s ever-growing needs for a better life. Consumption upgrading and industry upgrading become major trends, and a larger market with higher demands will also be formed in the meanwhile. High-quality imports are not only an inherent requirement for economic development of China and supplement for the shortage of domestic high-level factors, but also conducive to increasing international influence with market size. The CIIE is the first platform for China to demonstrate her advantages as a “Big Market” to the world. Everything is difficult at the beginning. We should make full use of this advantage and expand China's international influence. Third, we will actively participate. We will enhance discursive power by means of imports and actively participate in global governance. International investment and trade rules are facing reconstruction. As a trustworthy and responsible country, China will expand imports to demonstrate her determination to further expand opening up, deeply integrate into globalization, and actively participate in global governance. Against the background of resurging trade protectionism and unilateralism, the CIIE is a concrete manifestation of China’s active participation in global governance. With the minds as a great power, China will be open to the world, utilize import to promote global governance to develop for pragmatic cooperation, and boost win-win, multi-win and all-win. (The author is a research associate at the Institute of World Economy, Shanghai Academy of Social Sciences)  

 


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