Photo: IC

China-US relations are one of the most important variables in the international landscape, and the policy direction of Trump 2.0 is drawing global attention from both the political and business sectors. According to a recent report from the American Chamber of Commerce in China, while 51 percent of surveyed companies are concerned about further deterioration in US-China relations, 48 percent have ranked China as a top-three global priority. 

The reasons why American entrepreneurs and investment institutions in China are optimistic about the development of China-US relations include not only China's economic strength and market potential, but also the relative pragmatism of the Republican government and the economic interdependence between the two countries.

Although US' nominal growth continues to be positive and often "exceeds market expectations," many key indicators reflecting the real economy, such as electricity generation and consumption growth, have remained sluggish. The fundamental reason lies in the long-standing issues of industrial hollowing out and excessive financialization in the US, which have contributed to an expanding wealth gap. Therefore, increasing the employment opportunities and improving the sense of fulfillment for middle- and low-income Americans is not only an unmet goal of Trump 1.0, but also the primary task of Trump 2.0. This is far from an easy task. Years of friction between China and the US in trade, currency, and finance have only made this goal more challenging. Ironically, the US' tech blockade against China has instead led to a new roadmap for China's scientific research development. By focusing research funding and directing it toward key areas, China is achieving breakthroughs in critical technologies, and rapidly increasing the output and exports of related industries. This is why a group of Silicon Valley entrepreneurs, led by Elon Musk, are willing to cooperate with China - they hope the US will maintain its global leadership in technological innovation, while China offers a collaborative opportunity for both countries to share in global growth.

The demands of Musk and his likes clearly align with the interests of both China and the US. From the perspective of US economic and political traditions, the Republican government tends to focus more on economic and social development while downplaying ideological differences, which resonates with China's priorities, and creates more favorable conditions for the normalization of China-US economic and trade relations. 

Since the 20th National Congress of the Communist Party of China, the country has accelerated its economic transformation and upgrading. The Belt and Road Initiative has facilitated capacity and investment cooperation, while enterprises of new productive forces are innovating, and high-level opening-up has deepened. Numerous high-quality projects are now worthy of diversified venture investments. China has lifted investment quota restrictions for the Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII), lifted the limitations on the ratio of foreign shareholding in securities and fund management firms, allowing them to set up wholly owned units in the Chinese mainland. The level of openness, competitiveness, and influence in China's financial markets continues to rise, and a two-way open financial market system is rapidly taking shape. The mutually beneficial demands between China and the US are entering a phase of concentrated growth, and both sides should value this important window for cooperation.

No great civilization in human history has ever succeeded by merely encouraging consumerism or isolationism. The future global economic competition will still depend on which country can lead the transformation of technological achievements into productive forces and produce products that better serve global consumers. Conversely, any measures that rely on trade barriers or technological blockades to suppress other countries will only lead to a lose-lose situation. 

The author is chief economist of the China Academy of Invention Achievement Transformation. opinion@globaltimes.com.cn