China is a major trade partner of both the United States, the biggest economy in the world, and Europe, the biggest economic grouping. Our economies are highly interdependent with each other. China, for example, holds a foreign currency reserve worth of $3.2 trillion US. It needs an outlet.
Appreciation of RMB is no way out. Investment benefits all. The United States and Europe are devoting great efforts to creating jobs. If Chinese enterprises can invest more in the US and Europe, there will be more jobs for the Americans and Europeans. In the other direction, there are also great opportunities for American and European business people to invest in China. What is important is to reduce and even tear down trade and investment barriers. In order to maintain stability of the world economy, we also need to strengthen consultations about the reform of the monetary system and financial regulation system.
Indeed, there are many other areas where our interests converge. Climate change and clean energy are two promising areas of cooperation. China and the US are the two biggest energy consumers, oil importers, and carbon emitters. Europe is also highly dependent on oil imports, which will reach 70 percent of its energy consumption in 2030.
Clean energy cooperation can offer great possibilities for our economic growth and technological innovation to the benefit of all sides. Other areas of converging interest include security in cyberspace, outer space, and maritime zones. These are areas that have a bearing on the security of mankind as a whole. They should be considered as “common spaces,” or, in more economic jargon, “global public goods.” It is necessary to establish common rules and ways of operation in all these areas through consensus.