Craig Allen, president of the U.S.-China Business Council,delivers a speech at a promotion event in New York, the United States, on May 23, 2024. (Xinhua/Liu Yanan)

"There was an emphasis on innovation and the green economy. And both of those are useful and important focal points for the American economy, for American companies, and we can contribute to both," said Craig Allen, president of the U.S.-China Business Council (USCBC). 

A U.S. business leader welcomed the economic policies from the third plenary session of the 20th Central Committee of the Communist Party of China (CPC), noting that these measures will help expand domestic market demand, improve market exit mechanisms and promote technological innovation and green development.

"I am excited by the recent third plenum ... It appears that macroeconomic policy is headed in the right direction," Craig Allen, president of the U.S.-China Business Council (USCBC), told Xinhua in a recent interview in Washington D.C.

He applauded the measures introduced at the plenum aimed at boosting consumption and expanding domestic demand, viewing these practical measures as a positive signal that the Chinese government is moving in the right direction.

Regarding the "overcapacity" issue alledged by the West, the U.S. business leader said that China's manufacturing exports are currently thriving, with banks significantly increasing loans to manufacturers and substantially reducing loans to the real estate sector, but meanwhile Chinese manufacturers are facing challenges such as low profitability and low capacity utilization.

Allen added he is very pleased to see that the plenum discussed revising the bankruptcy law, which can help poorly performing companies exit the market through bankruptcy, benefiting the overall development of China's economy.

He also took notice of the strong emphasis on technology and innovation at the plenum. As China's research and development (R&D) investment already accounts for 2.6 percent of its GDP, he expected this percentage to increase significantly, which he said is significant for U.S. businesses.

"There was an emphasis on innovation and the green economy. And both of those are useful and important focal points for the American economy, for American companies, and we can contribute to both," said Allen.

Currently, the USCBC has over 200 American member companies doing business in China. Allen told Xinhua that these U.S. companies are very eager to continue strengthening cooperation with China in areas such as climate change, health care, tourism, education, finance, and entertainment.

Taking health care as an example, Allen said that as China's population ages, its people become wealthier, and private health insurance plans become more popular, U.S. companies are excited about the opportunities for collaboration with China in the sector.

There was further discussion on a unified national market and issues of provincial protectionism at the plenum, he said. "We strongly support that, as it will lead to yet more opportunities for strong Chinese companies as well as foreign companies."

"We are pleased that the government is heading in that direction," he added.

Allen also pointed to the measures outlined in the document released after the plenum to strengthen intellectual property protection, improve standardization processes, and ensure fair treatment for foreign enterprises in government procurement, saying that the implementation of these measures will benefit everyone including American companies.

"I think that there's much to be positive about over the medium and the longer term," and that cyclical issues unfolding now are being addressed by the Chinese government, said Allen.

The U.S. business leader observed many "really exciting" growth areas in the Chinese market, which U.S. companies are pleased to explore with their Chinese partners across various sectors.

He mentioned that the USCBC's member companies are confident in the long-term development of the Chinese market and have made substantial investments in China, hoping to contribute to its long-term economic growth.

"We're bullish about the future. We want to be a good partner to our Chinese corporate partners and to Chinese consumers," said Allen.

"We're in China for the long term. We're deeply invested in China, and we wish to contribute to China's long-term sustainable economic growth. And in doing so, that will benefit U.S.-China relations in a very significant manner," said Allen.

Regarding the position of the Chinese economy in the global economy, Allen voiced confidence that China will remain a key engine of global economic growth.

Citing data from the International Monetary Fund, he said that China is expected to contribute about 30 percent of global GDP growth in 2024, and that this trend will continue into 2025 and 2026.

Given the size of the Chinese economy, a potential 5-percent growth rate is equivalent to the total economic output of a small European country.

"We want to be a part of that market and we will be a part of that market. And we will grow with that market," Allen said.