One May 7, 2018, CDI and AmCham jointly organized a timely event titled “Dagger Drawn: What does U.S.-China Trade Standoff Mean for You?” in Hong Kong. The panel discussion focused on the current U.S.- China trade tension and the impact on business in the region. During the discussion, the panelists talked about the prospects of the trade war and the possibility to avoid it. CDI expert and fellow panelists stated that two countries have significant difference on culture, social structure, institution as well as two different economic systems. To solve the friction, two countries need to establish an inclusively frequent communication and docking mechanism on the basis of equality and mutual benefit. Moreover, China's future economic, industry and trade development should serve to strive win-win result for both countries. CDI expert pointed out that there are still rooms for transnational companies to expand in China, even under the current moment. Companies should well study and interpret the national strategic planning for development to seek opportunities.

Any country needs to react on the trade friction or trade war. In the regard of trade deficit, President Trump is not focusing on trade related issues. He is targeting intellectual property rights, China’s high-tech industry, “Made in China 2025” development strategy which are really about growth, development and emergence of China.

In the long-term, Sino-US trade tension definitely will cause negative impact for both America and China, as well as other countries since China is part of the supply chain.

We need to understand that the long-term interest is to enjoy long-term continuous and sustainable growth. In time people will get used to China’s growth. Now they are not used to it yet.

In terms of further opening up of China, it is a fundamental interest. We have been opening up in the past 40 years. As a result, we became stronger, and more used to international market, its risks, fluctuations, and sometimes crisis. As we are more sophisticated in dealing with these risks, we can open further. And as we grow up we need to take responsibilities for human kind and global community. Further opening up implies a lot of tasks at hand, for example, composition of new policy; then afterwards people need to adapt to the new institution. It’s not easy but it’s time.

As to Chinese macroeconomic development trend in the near future, we should know that there is risk in the economy at any given time. We are already at the bottom, part of, not a V curve, but rather a L curve. Now we are on the vertical line at the bottom, which is not long, but we still have some distance to go. In other words, we are in the process of bumping at the bottom and cannot immediately bounce back to high growth. This cycle is a normal process. Hopefully we can use this opportunity to fix our problems, e.g. overcapacity and financial risk, in order to have better growth in the next stage of economic development.