Zhou Xiaochuans Comment on Trade Friction: Trade Policy is the More Basic Policy in the Short Term

category:Global
 Zhou Xiaochuans Comment on Trade Friction: Trade Policy is the More Basic Policy in the Short Term


In the face of trade frictions, macro policies are indeed needed, but in the short run, the more fundamental policy is trade policy. Zhou Xiaochuan, former governor of the Peoples Bank of China, attended the fifth plenary meeting of the Lujiazui Forum in 2019 on the theme of Chinas financial opening in a new perspective of global economic growth, and said, Trade issues still need to be solved by trade policies.

What kind of trade policy can solve the current problems? Zhou Xiaochuan said that through trade negotiations and WTO reform, the wrong trade policies should return to normal, which is the right remedy.

In addition, facing the significant decline in Chinas exports to the United States in the first half of this year, Zhou Xiaochuan said that part of the reduction in Chinese enterprisesexports to the United States could be exported to other countries through expanding sales channels. China has great potential in this respect, because Chinas products are good, and the quality and price of products are reasonable.

Zhou Xiaochuan also advised Chinese companies that the United States has closed its doors and that there are so many other people in the world who need products that are hundreds of millions less in the United States market, but there are still many places where these products can be sold. However, opening new channels is also a challenge for enterprises. Chinese enterprises should do some homework and spend two or three years doing it patiently.

I would like to add that if you ask Adam Smith, would it be good if there were billions of people communicating around the world? He said its awesome. Its amazing that 2 billion or 3 billion people can trade globally. Paul Romer, a Nobel Prize winner and professor of economics at New York University in 2018, said that there are now 7 billion people in the global trading market and trade in different places will bring many benefits.

In the face of Global trade frictions, Paul Rowe acquiesced: In the long run, there is no need to worry about the current situation, there will indeed be some fluctuations. As President Zhou said, China manages well in times of great fluctuations, and will certainly do so in the future.

Source of this article: ShangGuan News Responsible Editor: Yang Yi_NBJ10647