BEIJING, May 31 (Xinhua) -- BRICS can be a “bridge” for the U.S. and American business to link the South and the North, said a Chinese scholar who gave a keynote speech in a conference held in Washington, D.C on May 17th.
At the conference themed “Doing Business with the BRICS”, Chen Xiaochen, director of the International Studies Department of Chongyang Institute for Financial Studies at Renmin University of China (RDCY) briefed the theoretical model developed by Prof. Liu Wei, President of Renmin University of China, which said in recent years global value chains (GVC) is transforming into a “double circulation”.
One circulation is between developed countries and emerging economies, which can be understood as the “financial capital circulation”. The other circulation is established between emerging economies and other developing countries as “industrial capital circulation”. BRICS works between the two circulations. Therefore, BRICS serves as a bridge to link the North and the South.
China proposed BRICS-plus last year in BRICS Xiamen Summit. BRICS-plus means more inclusiveness and more openness, which means BRICS is the platform to have both South-South cooperation and South-North cooperation, the scholar noted.
In this regard, BRICS-plus does not only provide the world – including the U.S. – with supplies, markets and investment areas and projects, but more importantly, the connections. By connecting production and resources, BRICS supports high-techs and service industries in the U.S. .With BRICS offering American business a reliable and organized partner, America has a whole system. It is BRICS’ role in theory and in real practices, he explained.
The scholar told the conference that among BRICS-U.S. relations, China and the U.S. have formed the most important circulation in world economy. U.S. gets products and profits, while China gets money then send it back to the United States in various financial forms. Both countries benefit.
He emphasized BRICS is the collective power to uphold globalization, free trade and WTO. It is for the world and also for BRICS-plus’ interests. As of China, he explained, China will continue to open up. In trade policy, China is turning from export-led to a more balanced, even kind of import-more-emphasized one. In investment, China is making more overseas investment, which will benefit other emerging economies as well.
One of the big moves is the first China International Import EXPO to be held this November, said the scholar. BRICS countries have been invited to play a big role, making BRICS more like a golden bridge. A recent development is Indian PM Modi’s positive attitude toward the EXPO in his recent China visit. He added that China hopes the American leaders and high officials will also participate the EXPO and proposed American businesses seize this opportunity. (Contributed by Zhao Danliang, Danliang67@xinhua.org, edited by Zhang Aifang, zhangaf@xinhua.org)
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