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Xi Jinping, Vice President of China, started his trip to the United Stated recently at the invitation of Joe Biden, Vice President of the US. This visit is expected to strengthen the cooperation between the two countries and boost confidence. On Feb 17th in Los Angeles, China and the US signed a number of economic and trade contracts at the China-US Economic and Trade Cooperation Forum.
This is the second large-scale economic and trade pact between the two countries, the first of which saw $45 billion worth of contracts agreed to when President Hu Jintao visited the US last year. Among these contracts, some are of the traditional mode of purchase and import, including Sanhe Hope-full Grain & Oil Group, which purchased $1 billion in soy beans from an American company and Yingli Energy, which purchased $1.634 billion in silicon material.
There are also some contracts for a new mode of cooperation, such as ENN’s investment to build a clean energy ecological center in Nevada. As well, there is Jiaxing Stone Wheel and Zhejiang Hengzheng Valve’s joint-purchase of American tire making enterprises. This kind of cooperation embodies a diverse investment mode and displays a new trend of Sino-US economic and trade cooperation based on the foundation of frequent mutual visits between the two countries.
According to the “Letter of Intent for Cooperation of the Clean Energy Ecological Center Project” between ENN and Nevada’s Clark County government, ENN will invest $5 billion in Nevada to build a clean energy ecological center, which includes a solar energy photovoltaic generation base, a solar module manufacturing base and a future energy eco-town.
This investment of capital plus technologies will not only provide green energy to local residents, but also provide them with more than 4,000 jobs. At the China-US Economic and Trade Cooperation Forum on Feb 17th, Wang Yusuo, ENN’s Chairman of the board, made a speech on behalf of Chinese private-owned enterprises and expressed his confidence and good wishes for the investment and cooperation in new industries.
Meanwhile, he said that ENN would carry forward its spirit of innovation and begin a second start-up with the support of the Chinese and American governments. Experts said the investment and cooperation pattern of “capital plus technologies” will hopefully boost cooperation between China and the US, which confirms Vice President Xi Jinping’s prediction and opinion that “Sino-US cooperation has undergone a fundamental change in pattern.”
For a long time, “Investing and making profits” has been the main method of American enterprises in their global development. The status quo of “trade surplus in China and profit in the US” has lasted for decades.
Regarding this economic and trade mode, Xi Jinping pointed out when Biden visited China in August 2011, “With the further development of China’s reforms and opening to the outside world and modernization, the traditional Sino-US cooperation pattern that the US provides capital and technologies while China provides labor, resources and markets, has undergone a fundamental change.”
As to the reasons for this change, experts believe it has a lot to do with the fast improvement of Chinese enterprises’ “new power in technological innovations.” In some fields Chinese technology is now a leader. ENN’s clean energy investment project in Nevada is a typical case.
This is not the first time that ENN has participated in project cooperation in the clean energy field in the US. Starting in 2009, ENN group began cooperation in the photovoltaic field with Duke Energy, one of American’s biggest energy companies. Analysts consider ENN’s “capital plus technologies” project at the clean energy eco center in Nevada a ground-breaking event which will be a milestone in starting a new pattern in the China-US economic and trade dynamic.
Behind this new pattern is the rise of China’s comprehensive strength and technological innovation and America’s confidence and open mind towards its cooperation with China. During his visit to China last year, Biden expressed that the US is willing to step up cooperation with China on market access and mutual investment and welcomes and encourages direct investment in the US from Chinese businesses and entities.
Apparently, both the US and China have realized that with the acceleration of globalization, competition and cooperation has become an inevitable trend. To pursue cooperation in competition and form new cooperative patterns is the key to a win-win result, and will be the catalyst for developing future economic and trade cooperation between the two countries.