By CCTV correspondent Liling Tan
China's economic reforms have been welcomed by US investors. As the world's second largest economy signals a move towards allowing market forces to play a bigger role, how will this translate into US investment opportunities.
It’s a development that took many in the US by surprise the breaking up of China’s state-owned enterprises, known as SOEs, which makes up almost 70 percent of China’s equity market.
But with plans now to develop a mixed ownership economy, it would encourage private investment in state businesses. Great news for US investors.
"These investors can, if they have the right connections, can make the right pitch to the Chinese government to say ’hey, we have a better way of running this subway system, or this public utility, so let us manage it.’ And in some ways this would be China outsourcing certain parts of it, which is what the US government has done over the years." Ann Lee, adjunct professor from New York University, said.
While this is good news for US investors, the author of the book "What the US Can Learn From China" cautions that SOE reforms could also mean China may lose its dominance in certain key industries such as banking.
Still, she says these groundbreaking reforms would foster closer ties between the world’s two biggest economies by giving US and China more opportunities to work together.
"These are all very important in keeping China open, keeping China engaged with the West. And if they want to continue to access American know-how, America technology, American talent, this is what they need to do." Ann Lee, author of “What the US Can Learn From China”, said.
The reforms would improve the mutual relationship, allowing US interests better access into China while enabling China to better access American technology and talent.
- Exclusive: OECD on reforms in China 2013-11-16
- CPC: China to further open up its economy 2013-11-16
- China ambitious to become culture power: CPC decision 2013-11-15
- China to balance urban, rural development 2013-11-15
- Economic system reform is the key 2013-11-15