Sunday 9 April 2017

Better access for financial investment in China

According to American and Chinese officials, it is likely for the Chinese government to offer the American administration better market access for financial sector investments. It is not surprising to see that America does not turn its relationship with China into a hostile relationship even under the Trump administration which has been campaigning against China in many occasions. Many people say it is because of Trump's businessman style presidency. The information shows that the Chinese government may be loosening the restrictions for foreign investors, this time some American financial companies or even individuals may be allowed to enter the Chinese financial market more directly, in the future more and more foreign investors will be offered with better market access.

In addition to offering better market access, the restriction to US beef exports is also likely to be loosened as another offer. Then it is curious that if Trump is really doing a business with the Chinese government, what Trump will offer to the Chinese government. It can be political as well as economic offering. If it is a political offer, then the issue could be complicated, it may be about the South China Sea, Taiwan, or other political issues. If it is an economic interest exchange, then it is easier to guess what it is about. Firstly, China still wants its exports to be strong; therefore, the Chinese government may ask the US government to maintain or even lower its current tariffs. Secondly, China is also interested in some US technology advantages; therefore, the Chinese government may ask the US government to loosen its restrictions on high-tech product exports. Thirdly, China may also be interested in expanding its investment in the US. If the US government decides to spend a large amount of its government funding on improving its infrastructure, many Chinese companies will also be interested in participating in this great opportunity.

Overall, we should be happy to see that the relationship between China and the US is not turning hostile. This can ensure the world future economic growth and contribute global peace.

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