CCWE rounds up fruitful 2015 US think tank dialogue tour

In order to enhance mutual understanding with top-level think tanks from all over the world through the exploration of key topics such as China’s economic outlook and reform as well as global governance issues, the Center for China in the World Economy (CCWE) at Tsinghua University worked with the Brookings Institution and the Council on Foreign Relations to organize and participate in a series of events in Washington D.C. and New York from July 20-23, 2015.

The Chinese delegation was led by Professor David Daokui Li, Director of CCWE, and featured over 20 top experts and entrepreneurs from across China, including Zheng Xinli, former deputy director of the Policy Research Office of the Central Committee of the Communist Party of China, and Gao Xiqing, Professor of the School of Law at Tsinghua University, former President and Chief Investment Officer of China Investment Corporation.

The delegation kicked off the 2015 summer tour by visiting former Assistant Secretary of State Kurt Campbell and the headquarters of The Asia Group in Washington D.C. on July 20th. Both sides agreed that cooperation will be key for Sino-US relations in the next couple of decades, and think tanks from both countries are highly responsible for establishing and maintaining connections to facilitate this process. Speaking on President Xi Jinping’s visit to the US in September, Mr. Campbell said it would be a milestone for the future bilateral relationship related to cybersecurity and a key issue to discuss. Later, the delegation met with representatives of the Committee on Foreign Investment in the US (CFIUS) at the Treasury Department and visited Congress. Richard Gephardt, former US House Majority leader, led the tour with both Democrat and Republican representatives present.

The Chinese delegates meet with former Assistant Secretary of State Kurt Campbell (middle) at The Asia Group headquarters in Washington D.C. on July 20th.

The Chinese delegates meet with representatives of CFIUS at the Treasury Department in Washington D.C. on July 20th.

The Chinese delegates meet with former House Majority leader Richard Gephardt (3rd left) at Congress in Washington D.C. on July 20th.

On the 21st, CCWE worked with the Brookings Institution to hold a forum in Washington D.C., featuring two panel discussions on the Chinese economy and China’s role in global governance. David Daokui Li and David Dollar, senior research fellow of the Brookings Institution, delivered keynote speeches with Zheng Xinli, Gao Xiqing, and Brookings researcher Donald Kohn. Hundreds of scholars and media representatives also participated. Professors Li and Dollar expressed that the development of think tanks plays a vital role in state governance and academic exchanges for both countries. In terms of the US economy, Kohn pointed out that although energy prices, domestic consumption, and employment are still factors holding the nation back, the overall situation is positive and people should be optimistic about the outlook. He also said that the purpose of increasing interest rates is to create jobs, but this takes time, so investors should be prepared. Later that night, former US Secretary of Defense William Cohen invited the Chinese delegates to a dinner party with RAND and over 30 other US think tanks and enterprise representatives.

Professor David Daokui Li (2nd right) at a forum organized by CCWE and the Brookings Institution in Washington D.C. on July 21st.

The Chinese delegates meet with former Secretary of Defense William Cohen at a dinner party in Washington D.C. on July 21st.

On the 22nd, CCWE organized a Sino-US Investment Seminar at the Park Hyatt Hotel in New York. Professor Li led the discussion with Zheng Xinli, Gao Xiqing, Liang Xinjun (vice Chairman and CEO of Fosun Group), Luo Xin (CEO of Shunfeng International Clean Energy Limited) and business leaders from Wall Street. Participants exchanged their thoughts on the outlook of Sino-US business cooperation.

The Chinese delegates and business leaders from Wall Street at the Sino-US Investment Seminar in New York on July 22nd.

On the 23rd, CCWE visited the Council on Foreign Relations for a lunch meeting in New York to exchange ideas regarding some key economic and global governance issues. Following the meeting, a panel discussion was held with John C. Bussey from the Wall Street Journal (the host of the event) and Professor Li, Gao Xiqing, Zheng Xiinli, Nicholas R. Lardy (Anthony M. Solomon Senior Fellow at the Peterson Institute for International Economics), and relevant academics from both countries. According to Zheng, supply and demand, downward pressure, and structural limitations are 3 major factors holding China back. He argues that reforms in land, SOEs, and the finance system are needed to ease the pressure. However, Mr. Lardy believes that what China is currently experiencing is a natural readjustment in response to an overheated property market during the past decade. On top of that, Professor Li put forth a timeline of 6 more months for China's economic downturn and said that urbanization, green industry, and consumption will be new engines to drive China forward. In terms of the recent slump in the Chinese stock market, Gao said that given only 1/3 of the market price was lost in the process and not so many middle-class people were hard-hit, the effects were not as bad as expected. He expressed his view that apart from the structural limitations of relevant regulators, banks that issued loans and media that advertised the bull market should take the blame.

Professor Gao Xiqing and David Daokui Li with members of the Council on Foreign Relations in New York on July 23rd.