Interview with Ambassador Speltz： U.S.-C

　　

　　People's Daily Online USA interviewed with Former Ambassador Paul Speltz

　　Paul Speltz, former Ambassador to the Asian Development Bank, represented the United States extensively throughout Northern, Southern, and Central Asia to expand regional trade, promote financial cooperation, and increase private sector lending and financing activity. Mr. Speltz was also designated as Financial and Economic Emissary to China in 2004 by the United States Secretary of the Treasury. He was the leader in the administration’s economic and financial cooperation between the United States and China. People’s Daily Online USA had an interview with him on U.S.-China business relations.

　　 

　　 

　　While people have various perspectives in terms of understanding the two country’s relations – some describe them as partners – Mr. Speltz said China and the U.S. are so similar and yet have so many different ways. He described the relationship between China and the U.S. as a “rollercoaster”.

　　That means in the view of Mr. Speltz, it has never been a smooth, easy, relationship. The countries have their ups and downs when working together. Yet Mr. Speltz said the U.S.-China relations have been forward moving. “I think as long as both parties focus on that, we are OK.”

　　In comparison to a decade ago, Mr. Speltz saw that the U.S.-China business and economic relations have been progressing significantly. Back in 1972, the year when he first started working in China, to imagine the future China as of today would have been out of the question. “I would have bet you a lot of money that China never would be at where it is today,” Mr. Speltz said. “What’s happening in China now is remarkable. But it’s got to be sustainable. I think US and China need to work with each other.”

　　Challenges and Hurdles

　　Recently, the U.S. Securities and Exchange Commission is investigating nine Chinese companies whose outbound investments might involve accounting fraud. And the five big Chinese affiliates of leading accounting firms are charged for refusing to produce paperwork related to investigations. When asked if this news would deter Chinese investors from making outbound investments, Mr. Speltz said he’s confident that the issue will be resolved as accounting firms are working together very carefully with the Chinese firms.

　　As far as hurdles, one of the biggest hurdles on U.S.-China business investment is misunderstanding and misconception on both sides, he said. “You have many Chinese individuals and companies and corporations that are coming to the U.S., and they want to invest. They do not understand some of these rules of our regulations. And they believe that this is for all companies who are buying in. It isn’t. It has to do with strategic.” He gave an example of a U.S. company trying to a television network that is near military base. “You also have your own set of regulations that we have to deal with.”

　　He said that it’s necessary that both sides, on the private sector basis, get to meet each other, travel through the U.S., and see the applications that are there. By traveling over to the U.S., Chinese investors will receive supports and help from local, State, and government in the U.S. Local governor, local mayor, and local trade groups will help provide a broad and better picture of regulatory compliance to Chinese if they could be in the U.S. in-person. “I think [Chinese acquiring U.S. assets] is going to be continued. It may not continue on the multi-billion dollar deals, but it certainly will continue on the very key ones. I think the American people welcome it.”

　　Northern, Southern, and Central Asia

　　As an expert to Northern, Southern, and Central Asia’s economic and financial activities, Mr. Speltz commented on the economic developments in countries such as Vietnam and Laos. He said both countries are moving along and are certainly developing. And as they are very much linked to China’s activities, Mr. Speltz said it is crucial that people pay close attention to these countries as China’s economic pattern correlates to the economic trends in countries in Southern Asia. For Indonesia, he is optimistic about the country’s economic growth moving forward. “That’s the closest to China in many regards, in terms of its population and in terms of where it’s trying to go. I think Indonesia is the one that people should pay more attention to in terms of what’s happening.”