Meeting Between Chinese Lawyer Xiao Jinquan and American Expert David M. Lampton in Washington D.C.

In the morning of April 11th 2008 United States eastern time, Mr. Xiao Jinquan, the senior partner from Dacheng Law Offices and the Director of the Commerce and Corporate Committee of All China Lawyers Association, had a comprehensive communication and deep discussion with Professor David M. Lampton, who is known as the framed research expert towards China issues in the United States, Director of China Studies at the Johns Hopkins School of Advanced International Studies (SAIS) , and the president of the National Committee on United States-China Relation. Their meeting focused on how the development of China’s economic impacts America’s economy. 

Professor Lampton has pointed that the sustaining high growth rate of China’s economic is a miracle, to much extent driving the development of the world’s economy into a positive direction, but the ratio of the investments from the United States is relatively low. Professor Lampton considered the American people’s unacquaintance with the economic, political and culture environment in China is the major reason that holds back the investors from the United States. Therefore, deepening the mutual understanding between China and the United States plays an important role in promoting mutual economic cooperation.

In addition, Professor Lampton released his research result up to date, which showed that there were three main elements impacting Sino-US relationship, which are Might, Mind, and Money (named as 3M), and suggested the two countries strengthen the cooperation in the fields of culture and economy, and diminish military confrontation.

Mr. Xiao quite agreed with Professor Lampton about his opinion. Mr. Xiao stated Chinese economy has been growing at a rate of over 8% for a long time and it was obviously one of the fastest growing markets in the world. That was why large amounts of foreign capital poured into China to look for business opportunity and subsequently obtained great fortune from Chinese market. Many American enterprises, such as Motorola, Boeing, Coca Cola, Wal-Mart Stores and McDonald's, got unbelievable investment return in China, while it can hardly be achieved from other countries. American private equities, represented by Merrill Lynch, Goldman Sachs, John Pierpont Morgan and AIG also achieved great investment return above the world average level. The Carlyle Capital, which is working bankruptcy now because of the Sub-prime Loan Crisis, had earned 100 million through investing 8 million dollars to a Chinese on-line tourist company named “CTRP-US”, while its average worldwide investment return ratio was only 34%. All the facts dedicate that Chinese huge market can bring huge earnings for America.

According to Mr. Xiao’s new research findings, he pointed out that there were 700 million farmers in China’s rural areas, accounting for 11% population of the world. As a big market, Chinese farmers will produce immense consumption demand. The United States of America has the world's leading products, technology, management experience and rich capital, all of which are greatly needed during China’s urbanization process. China’s rural area is not only the hinterland for China’s sustainable economic development but also the hinterland for pulling the world’s economic development. Building deep strategical Sino-US cooperation will be conducive to both sides either for the goods export or for the capital export. The economic depression of the United States of America will be restrained only if the United States takes a long-term strategical perspective on China and makes full use of Chinese huge market, especially the rural market. Then the United States will get through such crisis and revive its glories economy.

Mr. Lampton got along with Mr. Xiao’s opinion. He supplemented that there would be many middle-class people during China’s urbanization process. The purchasing power of these people will be directly beneficial to America’s export.

Following their talks, Mr. Lampton presented his new book “The Three Faces of Chinese Power” to Mr. Xiao. And Mr. Xiao also presented his English book” Investment and Merge in China” , the new books “Legal Risk Control of Corporate Merger and Acquisition” and “Bankruptcy reorganization-Renascence of Chinese Companies” to Mr. Lampton in return.