Macro-Finance Salon (No. 90): New Trends in China and the US’s Economy

On March 24, the Macro-Finance Salon (No. 90) was held in Renmin University of China. Wang Wensong, deputy director general of Planning Department at China Development Bank, delivered a keynote speech on “New Trends in China and the US’s Economy”. Song Ke, IMI’s deputy director, and Zhao Xuankai, scholar from Central University of Finance and Economics was also present at the meeting. Zhang Zhixiang, former IMF executive director for China and Academic Committee member of IMI, chaired the salon. Mr. Wang elaborated from the following three aspects: China’s economy will continue to enjoy sound and relatively fast growth; global economic powerhouse is shifting from the U.S.; China’s growing economy assure long-term, sound RMB exchange rate. Mr. Wang said in his speech that despite challenges and risks, China’s economy will still sustain a relatively fast growth. That owes to the stable political environment, continuity in policies and sound economic foundation which make possible the great momentum of growth and the capability to control risks. He also said that the US-China relations may be the most important and complicated bilateral relationship for China, even for the world. Given its weakening influence and overall strength, it would be very difficult for the United States to dominate the world forever. On the other hand, China’s overall strength is rising. As time goes by, the above trends would become more and more apparent. Regarding the exchange rate of the renminbi, he emphasized that the contribution rate of China’s economic development to the world is as high as 30%, and the international status of the renminbi will inevitably become higher and higher, and the long-term picture of the renminbi’s exchange rate against the US dollar remain optimistic. Following Mr. Wang’s speech, Song Ke shared his views and agreed that the China-US trade friction was caused by a series of political and economic strategies of the two countries, and that the internationalization of the renminbi will be accompanied by a steady progress of China’s economic development. Zhao Xuankai summed up the views of the keynote speaker and raised questions on how to prevent and manage financial systemic risks. In the end, Zhang Zhixiang made a brief summary.

DOWNLOAD