Trish Regan: Give me your current assessment, where we are on these trade talks? Do you believe a deal is possible?
Liu Xin: I don't know. I I don't have any insider information. What I knew was the talks were not very successful last time they were going on in the United States, and now I think both sides are considering what to go next. But I think the Chinese government has made its position very clear that unless the United states government treat the Chinese negotiating team with respect and show the willingness to talk without using outside pressure, there is high possibility that there could be a productive trade deal. Otherwise, I think we might be facing a prolonged period of problems for both sides.
Trish Regan: But I would stress that trade wars are never good. They're not good for for anyone, so I want to believe that something can get done. And these are certainly challenging times. I realize there's a lot of rhetoric out there.
Liu Xin: Indeed there are people talking about china already becoming so big, why don't you just grow up. Basically, I think you said it in your program as well: China, grow up. Well, I think we want to grow up. We don't want to be you know dwarfed, poor, or undeveloped all the time.
But it depends on how you define developing country. Right? If you look at China's overall size,the overall size of the Chinese economy. Yes, we are very big, the world's number one. But don't forget，we have 1.4 billion people. That is over three times the population of the United States. So if you divide the second largest overall economy in the world, when it comes down to per capita GDP, I think it’s less than one six that of the United States, and even less than some other more developed countries in Europe. So you tell me, where shall we put ourselves?
This is a very complicated issue because per capita, as I said, is very small, but overall it's very big. So we can do a lot of big things and people are looking upon us to do much more around the world. So I think we are doing that.
We're contributing to the United Nations. We are the world's biggest contributor to the UN peacekeeping missions. And we're we're giving out donations and human humanitarian aids and all of that because we know we have to grow up. And Trish, thank you for that reminder.
Trish Regan: Let's get to the tariffs. I i've seen some of your commentaries too. And Xin, I appreciate that you think China could lower some of its tariffs. I watch you say that, and i'm totally in agreement with you.
In 2016, the average tariff, effective tax that was charged on American goods in China was 9.9 percent, and that was nearly three times what the US was charging. So what do you say about this? What do you think about saying, hey, you know, the heck with these tariffs? Let's get rid of them altogether. Would that work?
Liu Xin: I think that will be a wonderful idea. I mean, don't you think for American consumers, products from China would be even cheaper and for consumers in China, products from America would be so much cheaper too. I think that will be a wonderful idea. I think we should work towards that.
But you know you talked about rule-based system, rule-based order. This is the thing. If you want to change the rules, it has to be done in mutual consensus. Basically we talk about tariffs, it is not just between China and the United States.
I understand if you lower tariff just between China and the United States, the Europeans will come, the Japanese will come the the Venezuelans probably will come and say, “hey, we want the same tariff.” You can't discriminate between countries. So it is a very complicated settlement to reach.
Trish Regan: I think your economic system is very interesting, because you know, you have a capitalist system, right? But it's state-run. So talk to us about that. How do you define it?
Liu Xin: We would like to define it as socialism with Chinese characteristics where market forces are expected to play dominating or the deciding role in the allocation of resources. Basically, we want it to be a market economy, but there are some Chinese characteristics. For instance, some state-owned enterprises which are playing important but increasingly smaller role may be in the economy.
And everybody thinks that china's economy is state-owned and everything is state-controlled, everything is state, state, state. But let me tell you, it is not the true picture. If you look at the statistics, for instance, 80% of Chinese employees were employed by private enterprises; 80% of Chinese exports were done by private companies, were produced by private companies. About 65% of technological innovation were achieved or were carried out by private enterprises, some of the largest companies that affect our lives. For instance, some internet companies or some 5G technology companies, they are private companies.
So we we are a socialist economy with Chinese characteristics, but it's, you know, not everything state-control, state- run. It's not like that. We are actually quite mixed and varied. We make it dynamic and actually very very open as well.
Trish Regan: What if we said, “Hey!sure! Huawei, come on in. But here's the deal. You must share all those incredible technological advances that you've been working on. You gotta share it with us. Would that be okay?
Liu Xin: I think it is, if it is through cooperation, if it is through mutual learning, if it is through... if you pay for the use of this IP of this high technology, I think it's absolutely fine. Why not? We all, we all prosper because we learn from each other. I learned english because I had American teachers. I learned english because I had American friends. I still learn how to do journalism because I have American copy-editors or editors. So I think that's fine. As long as it is not illegal. I think everybody should do that. And that's how you get better. Right?
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