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What is the essence of the Sino-US trade war? How should China respond? How to reconstruct China's competitiveness in the future? Yesterday, at the 2019 (2nd) Annual Financial Forum of Renmin University of China Business School held in Beijing, participating experts discussed these issues.

Zhang Yansheng, chief researcher of the China Center for International Economic Exchange and former secretary-general of the academic Committee of the National Development and Reform Commission, believes that the essence of the Sino-US trade war is that the United States wants to maintain its global hegemony and global leadership. At present, it is a game of great powers that has not changed in a century. China should maintain a calm mind, do its own things well, and not waste the historical opportunities brought about by the great changes.

The theme of this forum is "New pattern, New economy and New Finance", which aims to build a high-quality platform for cross-border exchanges and cooperation between industry and capital, theory and practice, government and market. The new pattern refers to the new era; the new economy refers to the intelligent economic form in which innovative knowledge dominates and creative industries become leading industries; and the new finance refers to the marketization of financial factors, the diversification of financial subjects and the rapid iteration of financial products.

Under the new pattern, new economy and new financial environment, what is the relationship between China and the United States? How will it affect China's economy? Zhang Yansheng responded that the widespread anxiety in the world today is due to the lack of motivation, governance, balance and cooperation in the world. Lack of motivation is due to the lack of scientific and technological innovation and cooperation. At present, the rise of technological protectionism in the world hinders scientific and technological innovation and cooperation.

Regarding the essence of the Sino-US trade war, some people think that it is a dispute over the development path, while Zhang Yansheng believes that the United States wants to maintain its global hegemony and global leadership.

What is the impact of major changes in the external environment on China's economy? In this regard, Zhang Yansheng said that the tariff war to build the United States first global industrial chain, science and technology war to form a world, two systems. However, China does not want to fight and is not afraid to fight, because China has enough resilience, huge potential and room for maneuver to withstand the challenges of any major country.

Zhang Yansheng analyzed that before 2035, China and the United States were irrational confrontations, and only after that did they truly enter the stage of strategic cooperation and dialogue.

"The game with the master is always progress. The process is more important than the result, and we must strengthen ourselves in the process." Zhang Yansheng believes that at present, it is a game of great powers that has not changed in a century. China should maintain a calm mind, respect common sense, laws, and logic, maintain historical patience, strategic determination, and bottom-line thinking, and do its own things well. Don't waste the historical opportunities brought about by great changes.

Under external pressure, how can China promote technological innovation and reconstruct its future competitiveness? Zhang Yansheng's suggestion is to create a supporting environment and conditions to make innovation the first driving force. To do a good job in disruptive innovation, key core technological innovation and market-oriented technological innovation, the key is to develop a first-class innovation environment, build world-class enterprises and first-class universities, give better play to the role of the government, and create a better market environment and business environment.

With regard to the standards of world-class universities, Wu Xiaoqiu, vice president of Renmin University of China and director of the Institute of Finance and Securities, believes that world-class universities should be inclusive, have the spirit of exploration and innovation, and become the main force for innovation and change in human society. first-class universities should attach importance to ideological value.

Wu Xiaoqiu also talked about his views on financial innovation. He believes that China's finance is currently in an era of diversified change, which is driven by three forces: the power of technological reconstruction, the power of market disintermediation and the difficult choice of opening up.

"The power of technology to reconstruct China's finance is huge, and it has produced disruptive results in quite a few areas, that is, changing the financial format, changing the perception of finance, and even changing the theoretical structure behind finance."

Wu Xiaoqiu said that the transformation of traditional finance to modern finance, the most basic force comes from market disintermediation. The core of traditional finance is financing, and the investment function is weak. It mainly through financial intermediaries, financial institutions to complete financing activities. As a result of the development of financial liberalization, the trend of market disintermediation and bypassing financial intermediation through the market to complete financial activities is accelerating significantly.

The disintermediation of finance is the basic trend and basic force of modern finance. In the future, both financing and investment will go to the market, which provides sufficient transparency in the financial system, provides symmetry of information and creates a pricing power.

As for financial openness, what is open, open financial markets or financial system (I. e., free movement of capital)? Wu explained that it is impossible for a country to choose between the free movement of capital and an independent monetary policy and exchange rate stability at the same time, and that a choice must be made between them, which is a difficult choice. China is a big country, independent monetary policy is the basic premise.

(Source: China Net)