Experts discuss chances for Silicon Valley with China's economic changes (2)

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Tom Shoesmith, who specializes in international corporate transactions with a special emphasis on China says that China’s new policies and economic changes will impact Silicon Valley. (Han Shasha/People’s Daily Online)

San Francisco, Oct. 10 (People’s Daily Online)--“China and the United States are now the two biggest players in international trade. The two economic structures are complementary, the two markets are depending and the two-way exchanges are profitable,” said Xia Xiang, Economic and Commercial Counselor from Chinese Consulate in San Francisco at a forum held in Silicon Valley recently.

The forum themed “Opportunity for Silicon Valley-China’s new ruling body” was hosted by the non-profit organization China-Silicon Valley. Victor Wang, co-founder of the organization said, “American companies may show interest in China’s new ruling body when launching new policies and taking new actions, like the Shanghai Free Trade Zone, which means great opportunity to the Silicon Valley.”

Xia Xiang said that During Edmund G. Brown, the governor of California’s visit to China this year, he signed the MOU with Chinese side on strengthening business exchanges between China and California. According to the MOU, China’s six provinces will join hands to participate Province-State Cooperation program with California. The cooperation will focus on nine areas, including infrastructure, advanced manufacturing, information technology, biotech, new energy environment, agriculture, tourism, fair and exhibition. Xia said “I am quite sure such a mechanism will dramatically generate powers to local business communities and push forward Chinese economy to a new high.”

Besides, the Chinese government is pursuing more solid, more intensive and cleaner growth. Many policies and measures have been made to protect ecological environment by reducing green gas emission. Last month, Xie Zhenhua, deputy commissioner of China Development and Reform Commission signed a MOU with governor Brown on the cooperation of climate change, clean energy, low carbon and reducing green gas emission.

Tom Shoesmith, partner at Pillsbury Winthrop Shaw Pittman LLP, who specializes in international corporate transactions with a special emphasis on China talked about “Why China matters” from seven aspects. He said that China has been the second largest economy in the world with an annual economic growth of 8-10 percent. China has almost 1.4 billion consumers with rising middle class. China has also seen explosive growth in key sectors, such as energy, aviation, technology and infrastructure, which will bring lots of opportunities to Silicon Valley, California and the United States. China’s new policies and economic changes will impact Silicon Valley.

Nicholas C. Hope, China program director at the Stanford Center for International Development said that seeking cooperation rather than conflicts will bring two countries more benefit. Since China got access to the WTO, China and the United States have enjoyed double digit increase in bilateral trade for about 10 years. Last year, the bilateral trade registered 7 percent increase, which is up to 536.2 billion U.S. dollars.

Attendees also showed intense interest in China’s newly opened Shanghai free-trade zone with frequent questions. Xia Xiang answered that the free trade area may be the start of China’s third wave of economic reforms that might roll out across the country.

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