Macroreview: The Need to Rebalance both the Chinese and U.S. Economies

By Shen Minggao

(.com.cn) Both China and the United States need to adjust their economies. The country which adjusts first will be better prepared for economic recovery and sustainable growth and have an upper hand in future bilateral economic dialogue. 

During the recently-concluded Strategic and Economic Dialogue (S&ED), the United States emphasized balanced and sustained economic growth. The United States also proposed new energy as part of the strategy to combat climate change and a new engine for economic growth. China stressed its enormous potential as a growing market during its ongoing process of industrialization and urbanization. China said that the restructuring of its economy will ensure a continued economic recovery. China also requested the United States to recognize its status as a market economy, apparently to strengthen their bilateral trade, a major contributor to China's growth.