News / Asia

Former US Trade Reps See Opportunities, Difficulties in Chinese Economic Growth

U.S. Trade Representative Charlene Barshefsky (File Photo)
U.S. Trade Representative Charlene Barshefsky (File Photo)

The rapid growth of China's economy over the past few decades has created new market strengths in Asia as Western countries have struggled to cope with recent economic pressures.

Ambassador Charlene Barshefsky served as U.S. Trade Representative from 1997 to 2001 in the Clinton Administration. Speaking recently at the Center for Strategic and International Studies in Washington, she outlined four trends in global trade with respect to China.

The first trend she spoke about is the acceleration of globalization.  The second is the reemergence of China and the integration of Asia around China as its hub.  Third, she mentioned China's reemergence comes at a time of extraordinary economic weakness in the West.  She said the fourth broad trend is the new competitive environment accelerating the disruption of settled industries.

Ambassador Barshefsky said the trends are historic. "The global economy is larger, it is growing faster, it is more integrated economically under the pressures of technology and capital flows than ever before in any historic sense," she said.

She said the second broad trend, the reemergence of China, should not come as a surprise. "I always use the word 'reemergence' with respect to China because 160 years ago the global economy was dominated by two countries, China and India, and China held over 30 percent of the world's GDP.  By comparison, today we hold 18, 19 percent of the world's GDP, maybe.  They were over 30 percent.  So, the reemergence of China.  This has created a structural shift in the global economy.  It is 'the' international economic story of our lifetimes," she said.

China has enjoyed robust growth rates over the past 30 years.  China's economy is now larger than Japan's or Germany's, but still smaller than the U.S. economy.

Ambassador Clayton Yeutter, who served as the U.S. Trade Representative from 1985 to 1989 in the Reagan administration, said the current Trans-Pacific Partnership agreement is an opportunity for the United States to tap into Asia's growth.

"This is certainly the most active trade agreement, active trade negotiation we have in the world today. And it may well represent the wave of the future.  One could certainly hypothesize that plurilateral agreements might well be the wave of the future in contrast to bilateral agreements or multilateral agreements that take a decade or more to negotiate," he said.

Ambassador Barshefsky said the United States has to understand China and the Asia region is in an economic pattern that has not been seen in our lifetime, but has historical precedent.

"[China] has integrated with its Asian neighbors.  Far less important than trade agreements between them is the fact that these economies have reverted to a more historic pattern in Asia, a pattern with which we are unfamiliar, but a pattern with which we would have been familiar had we lived 200 years ago or 1,000 years ago, 2,000, 4,000 years ago.  So this is a very different era, a very different situation," she said.

Part of the difference is a climate that includes technologically advanced communications and financial systems for facilitating transactions.  Combined with the improved transportation of products, nations have to agree on regulations, which Ambassador Yeutter said is a major part of negotiations on the Trans-Pacific Partnership agreement.

"There is a lot of good work being done on trade facilitation. There is work on some regulatory coherence, which is badly needed particularly in the sanitary, phytosanitary area, and some really good work, advanced work on intellectual property, and then more work on investment than has traditionally gone into trade agreements," he said.

Multinational corporations have increased tenfold in 35 years to more than 75,000 in operation today. But the economic downturn has led to a reduction in global trade.

In her third point on the broad trends, Ambassador Barshefsky said the reemergence of China has come at a time when trade levels are close to those last seen during the Great Depression of the 1930s.

"This is a very volatile combination. [There are] extraordinary global imbalances which we have all read about: trade imbalances, financial imbalances, trade deficit countries versus trade-surplus countries, currency issues, competitive non-appreciation of currencies, and all the rest," she said.

The fourth broad trend is the weakening of Western economies, which has led to job losses in many areas. U.S. manufacturing has been eroding for over 40 years. An increase in technology-assisted productivity has led to the need for fewer workers to create the same output, resulting in job dislocation.

Ambassador Barshefsky says President Barack Obama is pushing for increased trade exports and improved education in research and development to help offset the losses.

"The administration has been spurred to drive - begin to drive a competitiveness agenda, and this is absolutely critical. If our house is not in order, I do not care what we do on the trade side. We are lost. We have to get our house in order. There is no excuse for us not to put into place policies which are solely in our control to do to enhance U.S. competitiveness," she said.

Ambassador Yeutter said the Trans-Pacific Partnership agreement could assist U.S. efforts if other nations can be brought into the pact. "The hope is that if this agreement is done really, really well, that it will then have bolt-on possibilities as what I call "bolting on additional countries" at a later time with a relatively short negotiation being needed because of the quality of the agreement that is presented to them," he said.

Ambassador Yeutter said the Trans-Pacific Partnership agreement could be ready in time for the APEC meetings this year, hosted by the United States in Honolulu in November.


Jim Stevenson

For over 35 years, Jim Stevenson has been sharing stories with the world on the radio and internet. From both the field and the studio, Jim enjoys telling about specific events and uncovering the interesting periphery every story possesses. His broadcast career has been balanced between music, news, and sports, always blending the serious with the lighter side.

You May Like

Video Protests Continue in Ferguson, Spread to Other US Cities

Missouri officials say deployment of more than 2,000 National Guard soldiers helps curb second night of rampant arson and looting in Midwestern town More

Video Ebola, Crackdown on Illegals Hit Business in Guangzhou

Chinese city has largest community of Africans in Asia More

Video Legendary Lebanese Actress, Singer Sabah Dies at 87

Music and film diva, affectionately called 'Sabbouha' by millions of her fans, performed at Carnegie Hall in New York, Royal Albert Hall in London, Olympia in Paris, Sydney Opera House in Sydney More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Changei
X
November 24, 2014 10:09 PM
Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid