Yang Yongxin: China-U.S. game into the deep water area.

Yang Yongxin, Secretary General of the World Free Trade Area Alliance Figure brings great convenience to foreign enterprises to invest in China and Chinese enterprises to "go global" in busy petrochemical ports. (CFP for illustration)
.On January 15, 2020, China and the United States signed a preliminary economic and trade cooperation agreement, which did not bring much joy to the Chinese people, but added a lot of doubts and uncertainties, because the United States "turned the page" too quickly. In the face of America's hard and soft hands, China also gave the answer: talk, the door

; It can be seen that The Sino-US economic and trade frictions have gone from fighting to talking, from talking about the normalization of playing, we must recognize and accept this fact. To this end, the Secretary-General of the World Free Trade Area Alliance Yang Yongxin said that the Sino-US competition game will enter the deep water zone this year, China should be in the international perspective of the world.China's rapid development promotes greater fission
Yang Yongxin said, after World War II, the United States as the largest beneficiary country, the national strength began to increase year by year, and to this end, the establishment of the International Monetary Fund, the World Bank, GATT-based economic system, the United Nations-based political system and NATO-based military system. Over the next 70 years, the United States dominated the world's economic development with its gdp, foreign exchange reserves, gold reserves, trade first and dollar status. Despite the decoupling of the dollar from gold following the collapse of the Bretton Woods system in 1971, the dollar still occupies the position of the world's currency.
Yang Yongxin said, but with the development of global integration and decades of China's reform and opening-up efforts, China has also become a beneficiary country, in science and technology, aerospace, military and other fields have been unprecedented rapid development, foreign exchange reserves have reached more than 4 trillion U.S. dollars, in recent years alone, the scale of overseas investment has exceeded 100 billion U.S. dollars. The pattern of world economic development led by Western countries and the United States began to take place in this situation, it is obvious that China's rapid development is also quietly driving changes in the world economic pattern.
The National Development and Reform Commission public information shows that since the "Belt and Road" initiative was launched, China has signed 197 "Belt and Road" cooperation documents with 137 countries and 30 international organizations, and has invested more than 100 billion U.S. dollars in non-financial investment in countries along the route. In 2019, domestic industrial enterprises above the scale achieved operating income of RMB105.78 trillion, up 3.8% YoY. In 2018 alone, China's chemical industry has reached $2.2 trillion in total transactions, up 42.5 percent year-on-year and accounting for 39.6 percent of global chemical transactions. The most important change is the development of China's economy, and in the past 10 years, China's industrialization process and scientific and technological development have made China's contribution to the whole world reach about 30%.the negative impact of China-U.S. trade frictions is inevitable
Yang Yongxin pointed out that china-U.S. trade frictions under the new situation will have a significant impact on the economic development of the two countries and the world. In 2019, the United States remained the world's largest spender of $581.03 billion in research and development, with its share of total investment shrinking to 24.98 percent from 34 percent a decade ago, while China's research and development spending remained strong, coming in second with $519.22 billion, up from 12.5 percent a decade earlier to 22.32 percent. These have also triggered the United States to Chinese talent, technology introduction of the containment of more intensified, huawei as the representative of private enterprises and China-Guangzhou nuclear and other state-owned enterprises are included in the U.S. Department of Commerce sanctions entities list.
the rise of the great powers will certainly trigger the game of great powers. Yang Yongxin said that trade friction is a surface, fundamentally a financial dispute. The United States pursues the United States as a priority, while China pursues the Community of Human Destiny, the United States dominates unilateral trade, while China advocates multilateral trade, the United States pursues a dollar settlement system, and China pursues a settlement system under the internationalization of the renminbi. As a result, the pattern of the world economy has changed. To stop this change, the United States, in addition to imposing heavy taxes on imports, has introduced bills such as the Uyghur Human Rights Act 2019, the Taiwan Guarantee Act 2019 and the Hong Kong Human Rights and Democracy Act 2019. It has been proved that the previous Sino-US trade friction not only caused the economic growth of China and the United States to be lower than expected, but also affected the subsequent development. Because the competition and game between China and the United States will enter the deep water this year, it will certainly have a great impact on the politics, economy and science and technology of the two countries and the world.Trational challenges coexist under the new situation
Yang Yongxin said, the competition between China and the United States is inevitable, and the game is a historical reason, in the new round of "trade friction", its form will be more complex. No one has been more affected than commodity trading, in which trade frictions between China and the US are sustainable for energy products and basic raw materials, except for agricultural by-products.
in terms of the energy economy, the trend in crude oil will be more complex. In the short term, a downturn in the U.S. and China would short crude oil, which is variable in Venezuela, Iran and Libya. Crude oil is the lifeblood of energy and economy. As a result, the game between the big powers will be more intense, geopolitical risks, protectionism and friction among major economies will intensify, all of which will be the current world oil market supply and demand difficult to balance and affect international oil prices. However, opportunities remain, according to the 2019 Domestic and Foreign Oil and Gas Industry Development Report, a high-end national think-tank, China's LNG imports are expected to reach 94 billion cubic meters by 2020, up 9.5 percent year-on-year, and gasoline exports will reach 236.8 billion cubic meters, up 35.39 percent year-on-year. In 2019, China's crude oil imports exceeded the 500 million mark for the first time, refined oil exports exceeded 50 million tons for the first time, and the external dependence of crude oil and oil exceeded 70%. This year, China's total refined oil exports will exceed 65 million tonnes, oil and gas extraction will grow by 1.8 per cent and total refining capacity will rise to 860m tonnes per year. By 2025, China's refining capacity is expected to rise to 1.02 billion tons per year, and its ethylene capacity will exceed 50 million tons per year, over the United States, ranking first in the world.
Yang Yongxin pointed out that the petrochemical industry is the most dependent on the world economy, domestic economic development can not be missing an important basis for the energy economy. As a result, the energy economy and China's huge market have become the glue for China and the United States to sit down and negotiate. Although the trade friction between China and the United States is becoming more and more intense, the response measures are becoming more and more skilled, the coping mechanism is becoming more and more perfect, and the market demand and common interests of the two sides are more dependent.Science and technology innovation has become a new driving force for development
since 2008, the world economy has entered a trough in line with the economic cyclical table, and more than a decade has passed with no significant relief, especially in 2019, when the growth rate of the world's major economies fell to a 10-year low. The traditional economic growth model and the old production process are no longer suitable for the development of new industries. Especially in the new era of leading science and technology, industrial solid background, high-end equipment manufacturing, digital economy, blockchain technology applications, clean new energy and the survival of the fittest changes, has been recognized by more and more countries, and scientific and technological innovation has become a global consensus, and become a new driving force for future economic development.
Yang Yongxin said that no matter how complex and changeable the international situation, but the continuous demand of the market for petrochemicals five sectors (petrochemical, basic chemicals, coal chemicals, pharmaceutical chemicals, salt chemicals) upstream and downstream industrial chain provides unlimited space for development. But "to production capacity, improve added value" and continuous innovation will become the main theme of future industrial development. Although China's chemical industry is currently facing many challenges, such as environmental governance, marine plastic pollution, chemical industry park construction, circular economy and emissions, with the implementation of the new version of the Foreign Investment Law in 2020, the lifting of the restrictions on foreign equity ratio in banks, brokerages, insurance and other fields (also covering manufacturing), China's opening up will be greater, the competitiveness of the market will become greater, but in any case, the petrochemical industry as a pillar industry of the national economy, will increase innovation and development efforts for agriculture, information, space, and other fields to provide more important protection. Yang Yongxin stressed that expanding cooperation with other countries in the world and building a world free trade ecosystem are also the most important features under the new situation, but also the inevitable way under the new initiative.
Yang Yongxin pointed out that China is now in an era of deep change, and should be more deeply aware that finance, military, science and technology support the development of the country in various fields. The current outbreak has not disrupted the pace of economic development process, China's speed, China's efficiency, China's strength for the future economic development has set a good foundation, the situation should be our attitude to the development of the world, but with an international perspective to the world, should be China's "going out" to the world's fundamental. In short, the road to economic development in the future has a long way to go.
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