[GlobalTimes.com]Li Wei: Talks only way to resolve Sino-US trade row

Beijing vowed to increase its purchase of US goods and services, which benefits China's economy. Rather than promoting exports, expanding imports is more essential for China's economy. Currently, China is pushing to upgrade domestic consumption. Hence increasing imports helps reduce the cost of economic development and improve living standards.

China agreed on "meaningful" increases in US agricultural and energy exports. As the second largest economy and the most populous country, China's economic development is dependent on international resources. By increasing imports, China can take advantage of global resources to improve its economy and people's life. China's promise to strengthen intellectual property protection will also benefit its own development and innovation.

I believe that the US has acknowledged China's tough stance during the festering trade row. On the one hand, China is willing to cooperate and on the other, it hits back with determination. I think the US has realized China's potential in safeguarding its interests and will therefore think twice before it threatens a trade war next time. For China and the US, the most important part is to talk, not to threaten a trade war.

The resolution this time does not mean Sino-US relations will meet no bumps in the future. On the contrary, with China's economic development, some fundamental contradictions between the two nations will stand out, like high-tech competition. As China develops its industry, the US sees challenges in the high-tech field and bilateral competition will become fierce, bringing more frictions.

What's more, the US has criticized China's economic institutions and labeled it state capitalism, which is unacceptable to China. The two countries' different understanding of economic systems may cause competition and friction.

China and the US must realize that their economic and trade ties benefit both enormously. As the world's two largest economies, the two nations' economic relations play the role of ballast in bilateral relations, which cannot be shaken. The trade dispute this time also showed that threatening a trade war cannot help resolve difference in opinion, which can only be dealt with through negotiations. After two rounds of talks, China and the US have resolved disputes smoothly, which can be a good trendsetter.

(The author is a research fellow with the National Academy of Development and Strategy, Renmin University of China )

(Photo by Liu Rui, GlobalTimes)