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China Shares the CIIE Dividends with the World

November 12, 2019

Hu Xiaoxiu, Associate Research Fellow, Institute of China Studies, Shanghai Academy of Social Sciences

The continued success of the CIIE has benefited both China as a “buyer” and the rest of the world as a sharer. Just like President Xi Jinping has pointed out, “All flowers in full blossom make a beautiful spring.” The CIIE is for the benefit of all rather than for China’s own interest. In a broader sense, the CIIE dividends are not merely reflected at the economic level. What we are seeing is multi-dimensional and inclusive dividends.

First, it brings huge dividends for markets. China has been comprehensively deepening reform and opening-up and promoting high-quality economic development. In such a context, to meet the people’s aspiration for a better life determines that China has a growing consumer market. Of the 1.4bn population, 400 million consumers are in high demand on high-quality products and services globally. China has a super purchasing power, accounting for 1/4 of the total of the world. Special service demands will continue to expand in demand-side areas including pension industry, medical care, trade, finance, etc. It is estimated that in the coming 15 years, China’s import of goods and services are expected to exceed $30trn and $10trn respectively. China will constantly bring huge dividends for markets and therefore governments, enterprises, social organizations, and individuals across the world will enjoy supply-side benefits and more tax revenues, profits, and opportunities.

Second, dividends for markets brings dividends for global governance. After World War II, the Bretton Woods System was established, thereby constituting a global governance order which was relatively stable. However, the demise of the Bretton Woods System in the 1970s has, with the further progress of globalization, created more support for isolationism and trade protectionism. The world has become more unstable with more uncertainties and the international situation has been characterized by intensified turbulence. Therefore, the global governance has been trapped in such dilemmas as the loss of value consensus, the shortage of international public goods, the vacancy of the principal body of responsibility, etc. It is the dividends for markets brought by the CIIE that is of great significance for driving global economic recovery and maintaining international political stability. The CIIE helps China with its business and trade exchanges with the BRI partner countries, which will continuously strengthen the cooperation between China and other countries. China, as the second largest economy in the world, has given great impetus to the global economic recovery and robust growth through its own middle- and high-speed development. Despite the international vicissitudes, China’s economy is stable and making good progress, and China will remain as the “bedrock” in the governance system of global economic development and political stability. Differentiated from the traditional global governance model, “a community of shared future for mankind” initiated by China puts emphasis on constituting a collaborated development model of equality and mutual benefit, win-win cooperation, and remaining partners for each other. The law of the jungle in international relationships still exists, but the new vision of a community of shared future for mankind led by China will certainly inject new vigor into the global governance and deliver great benefits to all the people.

Third, it brings dividends for business. The CIIE has provided a platform of product exhibition and built a global exchange and trade platform for relevant countries and enterprises. Meanwhile, for the regular and constant operation of the CIIE, Shanghai has established a permanent exhibition and trade platform covering both the Expo period and the whole year. Thus services and convenience are provided for local purchasers and foreign investors, and dividends for business to hold the Expo on an annual basis are as follows: tremendous facilitation will be given to foreign investors in starting business, applying for construction permits, using electricity, paying taxes, protecting small investors, registering assets, cross-border trade affairs, etc. Doing Business 2019 issued by the World Bank in 2018 ranked China’s business environment 46th, up from 78th by 32 places. For this result, the successfully held CIIE contributed a lot. To foster a world-class business environment, Shanghai proactively addressed problems of intellectual property rights (IPR) and was resolute in clamping down on IPR infringements. In 2018, Shanghai police solved the case of LEGO toy infringement and meted out strict punishment. The intellectual property rights of LEGO were thus well protected. The CIIE will certainly bring more dividends for business to serve enterprises across the world with stricter IPR law and world-class business environment.

Fourth, it brings dividends for cultural exchanges. In addition to substantial economic and trade achievements, the CIIE has also boosted international cultural exchanges. Both cultural and artistic works with Chinese characteristics and cultural products with Chinese and Western features blending together were very well displayed. All the participants enjoyed the historic and cultural landscapes of the BRI partners with their own characteristics, which deepened the exchanges between peoples of different countries and blew away the theory of “Clash of Civilizations”. The cultural exchanges of the CIIE aim to keep our own civilizations dynamic and create conditions for other civilizations to flourish. Together we can make the garden of world civilizations colorful and vibrant. It is only a start of dividends brought by the CIIE for cultural exchanges. Civilizations will enrich each other through future cultural exchanges among different countries.

It is now an era when globalization continues to develop. What we are seeing is that countries are inter-connected with each other, forming a community of shared future. The dividends brought by the CIIE should be comprehended comprehensively. The CIIE is benefiting both China and the world. The more successfully it is held, the more dividends it generates, the more China and the world will be benefited!