Chapter 1272 Summit

According to the negotiation between the two sides last year, the two summits will be held in China this year and in the United States next year. The cities where the summits will be held will be selected by the host countries.

As the first China-US Summit, China chose to hold it in Beijing, which is the political and cultural center of China, which is enough to show the importance China attaches to this summit.

At the opening ceremony, leaders of both sides delivered speeches, highly praising the importance of the summit, which will help promote exchanges between the two sides in various fields, stabilize bilateral relations and promote the development of bilateral relations.

The United States is China's largest trading partner; at the same time, China is also the United States' largest trading partner.

The two sides have a lot of common interests, and the exchanges and cooperation between the two sides are very close.

Since the normalization of bilateral relations, the United States has been the country with the largest investment in China for nearly three decades. A large number of American companies have invested in China to build factories, and the United States' investment in China has also received very rich returns.

According to incomplete statistics, the United States' assets in China are expected to reach a staggering 1.5 trillion US dollars.

China is also the largest exporter of American agricultural products and the largest market for Hollywood movies outside the United States.

So much so that, in the field of international relations research, the two countries are often described as a "husband-wife relationship", quarreling at the head of the bed and reconciling at the foot of the bed, and the economies of both sides are highly integrated.

For example, the US delegation this time includes American car companies. Now in the US market, American car companies still have a certain market share, because American car companies no longer have car factories in the United States, all of which are set up in China for production and then exported to the United States, reducing production costs and gaining competitiveness.

For example, Boeing aircraft, since China introduced the first batch of Boeing aircraft, Boeing has been the biggest winner in the Chinese aviation market. In less than 30 years, Boeing has sold aircraft to China for as much as 150 billion US dollars, and its market share is much higher than Airbus.

Even if China's domestically produced large aircraft Y-10 and C919 are now mass-produced, they still cannot meet market demand, and they still have to import aircraft from outside. After all, some intercontinental flights cannot be met by Y-10, such as direct flights to the United States or France, which must be Boeing or Airbus.

Moreover, many Chinese companies are also suppliers of Boeing.

And China's computer, mobile phone and other industries firmly occupy the first place in the US market.

At the beginning, the United States had a trade surplus with China, but as the trade volume increased, the trade surplus with China became smaller and smaller, and even later, the trade surplus with China turned into a deficit, and this trade deficit is still expanding.

Even if China is increasing its purchases of agricultural products and minerals from the United States, this trade deficit is still expanding.

This China-US summit can be said to have attracted global attention. All countries are curious whether there will be a tit-for-tat scene between the two sides at this summit.

There are several hot topics about this China-US summit.

Hot political topics, such as exchanges between the two sides on democracy, freedom, human rights, etc., and how the two sides resolve differences.

Hot economic topics are mainly reflected in US finance. The United States has repeatedly released rumors that it will carry out quantitative easing.

Quantitative easing is a nice way of saying it. To put it bluntly, the United States wants to print a lot of money and then the whole world will pay for it.

Before that, the United States was forced and could not print a lot of money.

Whether the United States can achieve quantitative easing and devalue the dollar depends on this summit.

This summit is also regarded as a barometer of the world economy.

The hot military topic is about mutual trust between the two sides, establishing more channels for communication, and avoiding misjudgment.

There is also cooperation between the two sides in combating violent incidents, extremist organizations, etc.

A conference room.

The two sides held a meeting, and it was a closed-door meeting at this time.

It was just that the atmosphere was a bit hot, and both sides were very angry, and they slammed the table from time to time.

If there were media reporters present, they would be shocked.

Even people who were usually gentle and polite were blushing at this time, slamming the table and scolding each other.

Unlike public meetings that are reported to the outside world, the issues discussed in closed-door meetings are highly sensitive and of vital interest.

Some topics have been discussed since the 1980s. Every time they talk about this topic, neither side is willing to take a step back, and they eventually parted unhappily.

Some topics were resolved as bargaining chips when the two sides were playing games.

For example, the restoration of the Ryukyu Kingdom was a bargaining chip for the United States. It paid this bargaining chip and gained benefits in other areas.

Some topics are related to the global chessboard.

For example, the trade surplus between the two sides. Americans hope to reduce the trade deficit with China, but the problem now is that Americans can't produce more things, but they need these goods.

If the price is reduced, Americans will complain and think it is trade dumping. If the price is maintained, Americans will find that the trade surplus will increase.

After deindustrialization, the United States is now tasting the bitter fruit.

But deindustrialization is also a choice that Americans have to make.

After the first oil crisis, energy prices rose sharply. Americans found that low-end manufacturing not only did not make money, but also lost money. They could not compete with Japanese products at all, so setting up factories in countries and regions with low labor costs to reduce costs became an inevitable choice.

But who could have thought that in less than 30 years, China has become the world's largest industrial power and the world's largest industrial power, achieving the great feat of a modern industrial power.

This is a miracle.

China's rapid development is far beyond the United States' expectations.

According to the United States' estimates, China's annual GDP is probably 6 trillion US dollars or even 7 trillion US dollars.

The most important thing is that a considerable part of China's export goods are not settled in US dollars, but in RMB. China holds tens of billions of US dollars and very few US debts.

The reason why the two sides quarreled this time was that the United States hoped that China would increase the proportion of foreign exchange dollars, preferably to hold US$1 trillion or even US$2 trillion in foreign exchange dollars.

There are also US debts, and it is best to hold hundreds of billions or even trillions of US debts.

The Americans' wishful thinking is crackling.

This aspect was naturally rejected and criticized!

For example, some professionals believe that the United States should return to the Clinton era, drastically cut military spending, reduce expenditures, and thus reduce the size of the U.S. debt. Otherwise, according to the current growth rate of the U.S. debt, it will not take many years for the size of the U.S. debt to exceed the size of the U.S. GDP, and one day the United States will even have difficulty paying the interest on the U.S. debt.

This is also in line with China's consistent principles, which are not very willing to issue bonds, believing that being debt-free is a relief.

So far, China's debt is very low, so low that it makes Americans jealous and envious. (End of this chapter)