China News Service, Beijing, May 14 (Liu Wenwen) Lin Yifu, Dean of the Institute of New Structural Economics at Peking University, pointed out when attending the 2022 Tsinghua PBC Chief Economist Forum on the 14th that China and the United States should maintain normal economic relations and establish a stable and peaceful world. new order.
Justin Yifu Lin said that the world is undergoing tremendous changes and the economic landscape has undergone tremendous changes.
On the one hand, the growth rate of the most important countries is declining, and on the other hand, emerging market economies are rapidly rising, especially China.
He pointed out that the biggest loser in the changing global landscape is the United States.
In 2014, China overtook the United States to become the world's largest economy in terms of purchasing power parity.
It is precisely because of this change that the United States wants to take some measures to maintain economic output and curb China's development.
Facing the current situation, what is China's next best strategy?
Justin Yifu Lin gave two suggestions.
First, we hope to maintain dynamic economic development.
He pointed out that China is currently catching up with great strides and has the advantage of being a latecomer.
China's current technology penetration rate is similar to Germany in the 1940s, Japan in the 1950s, and South Korea in the 1980s. The economic growth rate of this latter model is 8% to 9%.
For China, there is an annual economic growth potential of 8%.
At the same time, China has a very large domestic market, a high share of the international economy, and a good political environment to ensure stable economic growth.
"These are China's strengths, and China should play to these strengths to maintain dynamic economic growth."
Second, I hope to keep an open attitude and become a promoter of globalization.
Justin Yifu Lin said that China is the largest economy in the world in terms of purchasing power parity, with a potential growth rate of 8%. If China can maintain such a high growth rate, it will continue to contribute to the development of the global economy.
In addition, China is the world's largest trading country, the largest trading partner of more than 120 countries and regions, and the second largest trading partner of more than 70 countries and regions.
In the context of a globalized economy, trade is a win-win situation of 1+1>2.
"Therefore, it is recommended that China maintain high-speed dynamic economic growth and maintain an open-minded reform attitude." Justin Yifu Lin said that if these two points can be achieved, China's growth will be a development opportunity for other countries, and it can also disintegrate the United States' attempt to decouple from China. attempt.
He also pointed out that China is currently catching up, and one day China's economy will be twice that of the United States.
"On that day, the United States will have to make a balance and a choice. It must trade with China and maintain good relations with China. Only by dealing with China can it ensure that it is beneficial to its country and maintain normal economic relations. The new order is a new order of stability and peace," said Justin Yifu Lin.