Xin: I think if it is through cooperation, if it is through mutual learning, if you pay for the use of this IP or high technology, absolutely fine. Why not? We all prosper because we learn from each other. I learn English because I had American teachers. I learn English because I had American friends. Still I’m learning journalism because I have American copy editors. I think that is fine as long as it is not illegal. Everybody should do that. That’s how we get better right?
Regan：But you mention something very important, which is that you should pay for the acquisition of that. You know, look, I think that the liberalized economic world in which we live and have valued intellectual property and it’s governed by a set of laws, and so you need kind of to play by the rules and play by those laws for going to have that kind of trust between each other. But I think you bring up some good points. Let me turn to China right now, which is now…wow…the second largest economy. At what point will China abandon its developing nation status or stop borrowing from the World Bank.
Xin： Well I think discussion is going on and I have heard a very live discussion about it. Indeed, there are people talking about China already big, why don’t you just grow up? I think we want to grow up, we don’t wanna be dwarf and underdeveloped all the time. But it depends on how you define developing country, right?
If you look at the overall size of the Chinese economy, yes we are very big. But don't forget we have 1.4 billion people, that is over three times population of the United States. But when it comes down to per capita GDP, we are less than 1/6 of that of the United States and even less than some other more developed countries.
It’s a very complicated issue, because as I said it’s very small, but overall it’s very big.
We can do a lot of big things, and people are looking upon us to do a lot more around the world.
So I think we are doing that, we’re contributing to the United Nations, we’re the world’s biggest contributor to the UN peace keeping commissions, we’re giving out donations and humanitarian aids. Because we know we have to grow up and Trish, thank you for the reminder.
Regan: Let’s get to the tariffs, I’ve seen some of your commentaries too, and Xin I appreciated it you think China could lower some of it’s tariffs. I watch to see that and I totally agree with you. In 2016, the average tariff charged on the American goods in China was 9.9%, and that was nearly three times what the US was charging, so what do you say about this?
Xin: I think that would be a wonderful idea, I mean don’t you think? I mean for American consumers, products from China will be even cheaper, and for consumers in China, products from US will be so much cheaper too. I think that will be wonderful idea.
You talked about rule-based order, this is the thing, if you want to change the rules, it has to be done in mutual consensus, basically, if you talk about tariffs, it is not only about China and US, I understand, if you lower tariffs just between China and the Unites States, the Europeans will come, the Japanese will come, the Venezuelans will probably come and say, hey, we want the same tariff. But you can’t discriminate between countries, so it’s a very complicated settlement to reach.
When the world agreed on the tariff reduction China should commit to……was exactly the result of years of difficult negotiations of the United States saw in its interests and decided to what degree they can agree, or to what degree they can lower their tariff, and China agreed to, although in some difficulties, lower our tariff considerably, it is all the decisions of countries according to their own self interests, now things are different.
20 years later, what are we going to do? Maybe these old rules need to be changed. Let’s talk about it, let’s do it according to the rules. If you don’t like the rules, let’s change the rules, but again, it must be a multilateral decision.
Regan: You go back the trade view of 1974 Section 3, I wonder. There was a rule that enable U.S to use tariffs trying to influence behavior of China should have been taken in stealing our intellectual property. And I think in some ways that is part of what come in for human’s sense of trust. I hear you on the force technology transfer. And I think that some of the American companies perhaps admit it is a mistake in terms of being willing to overlook what they might have to give up in the new turn. But this is an issue where the country as a whole needs to step in and we’re seeing the United States do that perhaps in a way that hasn’t happened. I mean it’s been in a background. Don’t get me wrong. I think previous administration have Identify the challenges but have really been a little bit unwilling to take on. We’re living in this very different times. How do you define state capitalism? No, force technology is part of it……. Hang on one second, Xin, I wanna say that I think your economic analysis is very interesting because you know you’ve had a capital-assistant but it’s state-run. So, talk us about that. How do you define?
Xin： Well, we’d like to define the socialism with Chinese characteristics where the market forces are expected to play the dominating or the deciding role in the allocation of resources. Basically, we wanna be a market economy, but there are some Chinese characteristics. For instance, some state-owned enterprises which are playing an important but increasingly smaller role in the economy. Everybody thinks that china’s economy is state-owned.
1.有中国特色的社会主义 :the socialism with Chinese characteristics
2. 市场发挥主导作用 ：market forces are expected to play the dominating or the deciding role
3. 资源配置：the allocation of resources or allocate resources
Maybe in the economy and everybody thinks that china’s economy is state-owned. Everything is state-controlled everything is state state state. But I let me tell you it is not the true picture if you look at the statistics for instance 80% of Chinese employees were employed by private enterprise. 80% of Chinese exports were done by private companies, were produced by private companies. About 65% of technological innovation were achieved were carried out by private enterprises.the largest, some of the largest companies that affect our life for instance some internet companies some 5G technology companies, they are private companies, so we are yes socialist economy with Chinese characteristics but it’s you know that not everything state controlled, state-run it’s not like that. We are actually quite mixed and dynamic and actually very very open as well.
it is not the true picture
picture表示情况，比如look at the big picture 看大局
你不了解情况：you are missing the picture here
你了解…的真实情况么?do you have the real picture of….
Regan： Well I think you need to probably keep being open and that you know as a free trade person as myself. I think that’s the direction to pursue. And ultimately that leads to greater economic prosperity for you and better economic prosperity for us. And so let me get a win-win.
Regan： This was interesting. I appreciate you’ve been here. Thank you.
Xin： Thank you so much. If you wanna have a discussion in the future we can do that. If you wanna come to China…
Regan：I’d love it
Xin: You are welcome. And I’ll take you around
Regan： Thank you.