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EMS Dean Song Min attended 2019 Tsinghua PBCSF Global Finance Forum

2019-06-11

        On May 25th- 26th, Tsinghua PBCSF Global Finance Forum 2019 Financial Supply-Side Reform and Opening-Up was held in Beijing. Joined by governors and leaders from banking, finance, insurance, regulation and industry, the forum offered a platform for them to discuss finance and the current and future situation of economy and finance of China and the world under the global changes. EMS Dean Song Min attended the forum and delivered a speech.

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Recently, trade disputes between China and the United States have increased significantly, and are beginning to spread to science and technology. Our dean Song Min analyzed the current economic and trade conflicts between China and the United States and China's countermeasures from many aspects in a sub-forum named Reform and Opening-up in the Global Changing Situation.

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First of all, Prof. Song Min hold that trade dispute between China and the United States is more accurately called "conflict", which is actually a conflict of interests, rather than a war. As a matter of fact, the trade conflicts are not difficult to resolve. In view of the past experience of trade conflicts between Japan and the United States, China can adopt voluntary export restraints, increase imports, and open up the service, finance, education and medical marketses. The external pressure is actually to create an opportunity for our industrial upgrading, so if we define it as conflict is not terrible.

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Secondly, conflicts have emerged in the tech sector, with the Trump’s Administration recently adding Huawei to its "entity list" and proposing export controls on more Chinese companies. Our dean believed that the trade conflict may be just a cover, and it will be extended to technology, system and other aspects. Faced with the rapid development of Chinese high-tech enterprises, especially Huawei's 5G technology, the United States realized that it might not have an absolute advantage in the next round of scientific and technological revolution, so it acted accordingly. In this regard, China needs to master key and core technologies, but it cannot and does not need to master all of them. In the long run, perhaps today is the real turning point that leads us to the path of technological independence.

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Finally, the dean expressed that the real risk of these conflicts is that China will be isolated from the world’s industrial chain, value chain and supply chain, or the two systems will operate independently. Given that the speed of information spreading is so fast and China has one of the most integrated manufacturing chains in the world, he thought that is unlikely. (Writer: Wu Xiaofang; Reviewer: Li Xinxin; Translator: He Ke)