Changing China's economic model might ease external and domestic pressures on the economy. Photo: iStock
Foreign investors, including the US, continue to pour money into Chinese business investments. Photo: iStock

In the face of Sino-US trade friction, China’s best response is to unswervingly put forward a new round of reform and opening up with greater resolution, said Ren Zeping, chief economist at the Evergrande Group, Sina Finance reported.

Ren thinks the trade spat could last for the long-term and become increasingly severe.

He also believes that external hegemony is an extension of internal strength, and that the trade war is fundamentally a war of reform.

China should not back down to the US, but should focus on expanding reform and opening up, building a high-level market economy and open system, as well as a free and equal civil society, Ren said.

In addition, he suggests that China should expand the opening up of the financial services industry; steadily promote the opening of capital account; continuously improve the prudential regulatory framework and the coordination between regulatory agencies; and accelerate supply-side reform to solve the structural problems of finance.

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