A long time ago, Grecian Aesop told such a story, saying, “One winter, a farmer found a snake being frozen to half death. Out of compassion, he took it up and placed it in his bosom to warm it back to life. The snake revived soon, but when it had enough force, out of natural instinct, it gave the kind benefactor a deadly bite. Lastly, the farmer said to those standing around when he was dying, ‘Not take pity on a villain.’”
The story of Sino-US relations since 1989 is fairly like this one.
In 1989, the Chinese government, to crack down on its people’s democratic movement, massacred barbarously thousands of its citizens in Tiananmen Square. But following this, the US administration stretched out its gracious hands to it to invite China, a country viewed at that time by it as a backwater, to join the international economic system to help it develop and thrive. Later on, in 2001, China entered the World Trade Organization(WTO), an international economic institution which has been still most important for development to date.
Today, China has been the world’s second largest economy and has had the world’s second biggest military expenditure, but more importantly, it is tenacious to challenge the international order headed by the US and more relentlessly suppress the huma values universally recognized by the international community of freedom and democracy. In addition, it doesn’t conceal its intention to occupy the center of the world stage instead of the US either.
To achieve the aim, not only did China set up an it-led multilateral financial institution, the Asian Infrastructure Investment Bank (AIIB), but it designed and carried out an ambitious project, the One Belt, One Road (OBOD) venture, to interlink economic activities throughout Eurasia and the Pacific to gain more political and economic influence.
Moreover, China doesn’t forget using its economic clout to lift its soft power overseas. By Hanban, an affiliate of China’s Education Department, China has set up over 500 Confucius Institutes in more than 130 countries all over the globe. At once, it also launched an international $6.6 billion media expansion campaign, which includes creating a monstrous media outlet called Voice of China, to tell China stories overseas, propagate China’s ideas, and boost China’s image.
China doesn’t likewise forget exerting its economic clout to bow foreign companies and academic institutions to its will. Last year, it demanded Cambridge University Press to pull out from China Quarterly more than 300 articles and book reviews seen as sensitive by it. This year, it ordered more than 30 international airlines, including some US carriers, to delete any information from their websites that could suggest that Taiwan, Hong Kong or Macau are not part of China. At once, China also employs its economic clout to put up its first overseas military base in Djibouti and has started using the base to goad, even injure US troops near the base.
All these events seem unlike some separate ones but more like part of a great national strategy, especially when associated with large-scale military exercises recently conducting by Chinese troops in the Taiwan Strait and the South China Sea and the eventful fact that the Chinese government has removed presidential term limits from its constitution for its sitting president Xi Jinping to become an actual dictator.
In history, an autocrat was usually both ambitious and a nuisance of war, for instance Alexander the Great, Gaius Julius Caesar, Genghis Khan, Napoleone Buonaparte, Adolf Hitler, Mao Zedong, Deng Xiaoping and so on. For his part, Xi isn’t short on ambition: his China dream to rejuvenate the Chinese nation is just a good proof. For Xi, what Xi lacks or needs is a momentous achievement to prove himself to be on a par with his two predecessors Mao and Deng.
Unlike his another two antecessors, Jiang Zemin and Hu Jintao, the two ones had both marvelous martial accomplishments and aspirations for changing the country’s history. Mao was both one of the founders of the Chinese Communist Party(CCP) and the Chinese People’s Liberation Army(CPLA) and the founder of the People’s Republic of China(PRC). Deng was first one of the prime acolytes of Mao and then as the supreme leader of the country, he designed China’s economic reform and opening-up policy and firmly supervised its execution.
Jiang and Hu had no military backgrounds and compared with the former two, as presidents, they both were not only mediocre but feeble, yet it was under their rule that the country went through its present-day history’s best and longest economic growth and also it was during Hu’s presidency that the country came to become the world’s second largest economy, which has hold the title since that time the whole way until today. Besides, Jiang also finished another historical task, namely recovering China’s control of Hong Kong and Macao. The two regions had been the UK’s and Portugal’s colony before respectively.
Thus, if Xi is keen to surpass Jiang and Hu to fall into the dictatorial ranks of Mao and Deng, he needs to solve the following two issues:
(1) leading China to the position of the world’s largest economy or most powerful country;
(2) bringing Taiwan back to China’s reins.
This is the only two both feasible and glorious things his ancestors left him to resolve, but both them involves the US and their settlement seems to be not so easy.
Now, the US is the world’s biggest economy and strongest country. Moreover, it is also China’s largest trading partner and largest export market and still has a law which can be invoked to aid Taiwan in emergency, the Taiwan Relations Act and especially significant, the US has come to wake up to and is starting seriously reacting to threats from China.
At present, the president of the US, Trump both designates China in his national security strategy (NSS) as the US’s key strategic rival power, a revisionist country and also signs off the Taiwan Travel Act to enhance relations between the US and Taiwan governments, but more importantly, he is fulfilling a series of hardline trade policies on China: his administration has proposed to impose $150billion in tariffs on Chinese imports to avenge its unfair trade behaviors and lower its as much as over $300 billion trade deficit with China. Furthermore, it also banned US companies from selling high-tech products to a Chinese telecom equipment maker named ZTE for seven years because it had continued violation of US sanctions against Iran and North Korea. This will surely make the firm, which is now China’s second biggest telecom equipment manufacturer, grind to a halt because it can’t buy the irreplaceable US microchips again it uses in its products, according to some technical reports.
Yet nevertheless the Trump government’s objective isn’t still containing China but stressing competition with it, as stated in its NSS. This isn’t much different from the former Obama government’s goal. Still and all, there is a big discrepancy between them: the Obama government’s aim was stressing earning peace by diplomacy and dialogue, but the Trump government’s end was emphasizing gaining it through strength. Such large transmutation in means or behavior will have sizeable meaning.
In Obama’s times, the US government was picking up peace by non-violent means and sometimes even by unprincipled non-violent means. In 2012, Obama draw a red line, vowing that if the Syrian government used chemical weapons, the US would take military action in response. But a year later, when Syrian President Bashar Assad employed sarin gas to kill hundreds of his citizens, the Obama governement failed to follow his promise, instead letting Russia broker a deal for Assad to give up his chemical weapons.
Obama’s naked betrayal and inaction gave the whole world a definite signal that the US wouldn’t resolve international disputes or conflicts by military means. Afterwards, Russia annexed Crimea from Ukraine and a year after this, militarily intervened in Syria in Assad’s favor. At once, China also sped up the reclamation and expansion of maritime land in the South China Sea. The Obama didn’t take any action in response to these behaviors.
Moreover, in Obama’s days, with his passivity, Iran’s navy never stopped harassing US navy vessels in the Persian Gulf and even one time detained two US navy ships and the US sailors aboard them and then publicly humiliated them on television. In Obama’s presidency, Iran never received any punishment for the behaviors, but when Trump entered the White House as successor of Obama, the situation came to change. The Trump government reacted by strong military action to chemical weapons reuse by the Syrian government and out of expectation, Iran’s navy stopped badgering US warships, let alone demeaning.
For Obama, a particularly diabolical fact was that during his eight year presidency, the world just encountered an eight consecutive years of decline in democracy and freedom: Obama won peace by his extra appeasement and omission but let the values of democracy and freedom pay down.
No sign shows that Trump is steadfast adherent of these values. In fact, according to Freedom House, in his first year as US president, these values suffered further loss, with 71 countries having net decreases in political rights and civil liberties and only 35 registering gains. But still Trump manifests by his action that the authoritarian countries can be deterred effectively only by strength.
In the past 40 years, only two US presidents, Ronald Reagan and George W. Bush, had worked with such policy to win peace or promote democracy with strength. Ronald Reagan’s hardline was the direct cause of the collapse of the Soviet Union and Communism and paved the path for Eastern Europe’s succedent democratic revolutions while the direct result of George W. Bush’s hardline was directly overthrowing by the US by force Iraq ‘s autocracy and Afghanistan’s ultraconservative Taleban government and building up democracy in the two countries, abolishing authoritarianism. So, both the presidents boosted tremendously the development of the world’s democracy and freedom by their hardlines.
In present Sino-US relations, Trump could also make history if he is determined to go on his hardline on China.
In present Sino-US relations, China’s weakness lies in trade, in addition to education, science, and technology while the US’s fragility sits only in trade. This is an outcome of the US’s nearly 40 years of economic integration policy. This policy’s aim was turning China into a liberal democracy by assimilating it into the international economic system led by the US. But now the two countries’ economic relationships are so close that the fluctuation of either of them in economic activity will touch correspondingly another. In a Chinese word, in present Sino-US relations, if the US would like to start a trade war with China, then this is akin to that it kills 1000 enemies but itself loses 800 as well.
But nevertheless this isn’t a reason why the US shouldn’t kick off a trade war: there are three reasons why it needs to do so:
(1) running concession and tolerance would only further encourage China’s unfair trade behavior and heighten its resolution to challenge the current international order;
(2) the US needs to redress its own unprincipled trade expansion demeanor;
(3) such a war would likely give China a chance to reshape itself and push it towards democracy and freedom.
US past immoral trade behavior is the root cause of present China’s unfair trade behavior. While the US claimed that the idea of letting China enter the WTO was changing it into a liberal democracy, this couldn’t hush up the two facts, namely
(1) using the event, it opened China’s huge domestic market for its goods and services;
(2) the thing that China was allowed to joine the WTO was taking place after the its government put down bloodily the country’s democratic movement in Tiananmen Square and happening at the time following this the government still kept on quashing the country’s democratic movement but didn’t fulfill any political reform towards democracy and freedom.
So, If the US government really believed that the values of democracy and freedom are the same important as trade, it wouldn’t have initially admitted China into the establishment or at least it should have set up an international trade institution based on the values.
This is why Xi utilized a series of remarkably high-profile events to mark the 200th anniversary of Marx’s birth of late, because Marx asserted over 100 years ago that the limitless greed of capitalism would bring disaster to itself. For Xi, the US’s wrath at China’s trade behavior is just the start of such a calamity and Xi also believes that it is the US’s gluttony that renders China an opportunity to develop itself.
The US still should remember such a fact: it is it that helps kill China’s democratic enthusiasm and cause by trade and then creates a monster for itself. At the same time, the US should also ask itself such a question: if it is willing to kneel under China’s foots and lick its toes for more trade and prosperity.
For China, it is the US’s inordinate pragmatism and mercantilism that terminate its hope for democracy and freedom. China itself has no free and democratic heritage; it needs to introduce thought of the values from overseas, especially the West, to build up a democratic tradition for itself, but such hope has broken up since after 1989. While the Chinese government’s ruthless suppression is the main occasion of its breakdown, the US’s rapidly growing business with China is also an inescapable important factor. Sino-US business has been simply about money and weath because the Chinese government strongly resisted political reform for democracy and freedom from the commencement.
Yet Sino-US trade flourishing makes the Chinese government able to gather more money for buying advanced equipment for repressing the democratic movement. Now, not only does the Chinese government have the world’s most complex surveillance network, but also it has the world’s most complicated firewall. Thus, as expected, present China is also the country having the world’s least Internet freedom.
At the same time, Sino-US trade thriving and the rapid development of the Chinese economy also offer a heap of work opportunities for common Chinese. This makes them have more choices and chances for their living, but this also make them think that there is no need to go to risk pursuing a cause that looks beautiful but is destined to cost a very high price, even life. In their own words, dying with glory isn’t better than living in humiliation.
This is why since after 1989, never has a democratic movement or revolution fallen in China, the territory, where the disappearance of the democratic movement is only because at here the will and fervour for democracy and freedom have been cut to the bone by trade and prosperity, surveillance and suffocation.
By comparison with this, the languishment or decline of the West’s democratic movement seems to be because too much familiarity breeds too much contempt. Present Westerners are so accustomed to their democratic traditions and beliefs that they have forgotten how these democratic habits and beliefs were established. So Trump said, “it is great that Xi is president for life now, and maybe we’ll give that a shot some day.” Taking democracy and freedom for granted but not thinking that they are a belief and cause needing to defend with action and passion is a worrying thing.
Now, the West has many human rights organizations conducting research and observation, such as Amnesty International and Human Right Watch but no or only very few bodies willing to back the international democratic movement by practical action. Lack of action is a mark of faith loss. So, it seems that what west non-governmental organizations (NGO) say is far more than what they do, in the eyes of a foreign person. This may be one of the weighty origins of the persistent downturn of democracy and freedom worldwide.
Back to Sino-US relations. Current Sino-US relations are at the crossroads. When the Trump government planned imposing $150 billion in tariffs on Chinese goods and has imposed 25 percent tariffs on Chinese steel products and 10 percent on Chinese aluminum products, the Chinese government vowed to retaliate with equal-degree tariff measures and has already levied 25 percent tariffs on US soybeans.
Yet it seems that the US has yet to be sure how to deal with an aggressive China, when it sent its top economic team to Beijing to discuss the escalating trade war. In Obama’s age, the US government debated trade disputes and human rights issues with the Chinese government every year but all to no avail.
So, the problem is not that the US government doesn’t know that the Sino-US trade dispute isn’t too possible to resolve by talks but that it has yet to prepare to entail itself in an all-out trade war with China. Yet the US has no other choice unless it intends to accept China’s unfair trade behavior. Trade war is a bitter pill for the US, but this is a result of its own long-running unscrupulous trade behavior; China is only cunningly and unflinchingly taking advantage of it in its own favor.
Immoral trade behavior also lies in other West countries, such as the UK. About 150 years ago, the UK was the first west nation that made China open its national doors by force for business, while now it is also the first west state which joins the AIIB set up and led by authoritarian China.
A crucial feature of such behavior is that it puts trade over values, so it can also called the Trade First principle. This rule has never been explicitly expressed by the West, but it encourages China’s malformed development and leads to the decline of the whole world’s democratic developmental level. So, the US should end such unethical trade behavior and come back to a one balancing trade and values.
In this respect, the first thing the US can and should do is making a law requiring that all students from authoritarian countries, especially China, studying in the US first or at once know or learn knowledge of democracy and freedom if they would like to learn sciences and technology in the US. The US can’t help authoritarian countries, especially China, breed a great number of scientists and technicians any more but not teach them what are democracy and freedom. Such cases are particularly necessary and valuable with these students from authoritarian countries, especially China, because the kind of knowledge is unable to be learned or strictly prohibited in their own countries.
In order to promote democracy and freedom and erect strong faith in them, the US has no reason not to do it. In history, every democratic movement or revolution, whatever successful or unsuccessful, had a run-up to it when knowledge of the values took an active and widespread propagation. This makes the diffusion of such knowledge extraordinarily important. The US has a chance to do so: now, for China alone, it sends hundreds of thouands students to the US for study every year and half the number of them are learning sciences and technologies. This is just where China’s proneness lies. The country’s scientists and technicians haven’t even had the capacity of engineering a high-performance engine for its fighter. So, it is no surprise that in Sino-US trade, US companies have been required to hand over their intellectual property to Chinese firms for access to the Chinese market.
For the US, aside from trade war, another ostensibly imminent crisis will be from the Taiwan Strait. The status of Xi in the CCP isn’t so strong as expected usually. He now has almost all the most important powers, being a real tyrant, but so far he hasn’t finished any historic mission proving that he deserves all the powers. So as a despot, his status is factually more susceptible than his four predecessors. Thus, he needs an honor to show himself. Taiwan is just the place being likeliest to bring glory to him. This is mainly because Taiwan is China’s last domestic issue of territorial integrity.
So, for Xi, the Taiwan issue is of extreme importance, as if he doesn’t take any action to bring it back in his pocket, this will make his China dream of making China great again become a joke: how can a partite country become great over?
The reality also attests that Taiwan is just his most wanted objective: in the last two years, Taiwan has seen the Chinese military carry out drills near it as never seen before, with the CPLA executing 16 exercises in 2017 alone.
For the US, in present Sino-US relations, it still has the upper hand, but if it keeps on with the Trade First rule, it needs to ask itself if it will go on putting up with the country’s unfair trade behavior until some day it receives a fatal bite from China, the viper.
The U.S. Approach to Deal with China
For all the talk about the World entering a new global era, the past year bears a striking resemblance to 2008. That year, Russia invaded its neighbor, Georgia, and tensions with Iran and North Korea were consistently high. In addition, the world faced severe global economic challenges. But one notable difference is the status of relations between China and the US. At the time, cooperation based on self-interest was possible even amid political and ideological differences, conflicting security interests, and divergent views on the global economy, including the valuation of the Chinese currency and industrial subsidies. The US worked with Chinese leaders during the 2008 financial crisis to prevent its spread, mitigate its worst effects, and restore macroeconomic stability.
But at present, such cooperation is unimaginable. Unlike the period of the financial crisis, the Corona pandemic failed to revitalize cooperation between China and the United States. On the contrary, it exacerbated the hostility between them. They attack each other, blame each other for bad policies, and trade accusations about the global economic slowdown from which countries and the world have yet to recover.
Obviously, the world has changed. China is now under very different and more assertive leadership. Its economy has more than tripled in size since 2008 and it now has stronger capabilities to pursue more aggressive policies. At the same time, it has made far fewer efforts to open its economy to foreign competition than many in the West had advocated and expected. Meanwhile, the US attitudes toward China have turned sharply negative, as has politics in Washington. What has not changed, however, is the fact that without a stable relationship between the US and China in which cooperation on common interests is possible, the world will become a very dangerous and less prosperous place.
And unlike in 2008, the two sides view almost every aspect of their relationship in 2023 through a national security lens, even matters that were once seen as positive, such as job-creating investments or joint innovation in advanced technologies. In fact, Beijing views US export controls designed to protect US technologies as a threat to China’s future growth, and Washington, in turn, views anything that develops Chinese technological capability as enabling the rise of a strategic competitor and helping to boost Beijing’s aggressive military power.
And by extension, relations between China and the US are undergoing a sharp decline, from a competitive but sometimes cooperative relationship to a confrontational relationship in almost all respects. As a result, the US faces the prospect of placing its companies at a disadvantage and in a weaker position relative to its allies, which limits its ability to commercialize innovations. Also, it is possible to lose market share in other countries. For those who fear that the US will lose the competitive race with China, American actions threaten to embody that fear surely on the ground.
An alliance of the willing
The US is trying to create a coalition of like-minded countries, mainly democracies in Asia and Europe, in order to create a counterweight to China and put pressure on it. But this strategy does not seem to be working, and it is harming both the US and China, and in the long run, it is likely to hurt the Americans more than the Chinese. It is also clearly in Washington’s interest to cooperate or work in complementary ways with China in certain areas and to maintain a beneficial economic relationship with the world’s second largest economy.
Although many countries share Washington’s hatred and aversion to China’s policies, practices, and behavior, none of them follow Washington’s ways in addressing these concerns. It is true that almost all major partners of the US tighten export controls on sensitive technologies, scrutinize and often stop Chinese investments, and expose Beijing’s coercive economic policies and military pressure, but compared to Washington, even its closest strategic partners are not to the same degree. Its willingness to confront China or attempt to contain it or disengage from it economically.
In fact, there are several countries that do the opposite of what hard-line voices in Washington demand. Rather than decoupling or economically disengaging from China, many countries are increasing trade with it even as they hedge against potential Chinese pressure by diversifying business operations, building new supply chains in other countries, and reducing exposure in the most sensitive areas. Perhaps that is why, despite years of American warnings, in 2020 China overtook the US as the European Union’s largest trading partner. In 2022, both EU exports to and imports from China grow. It now appears that Asian and European leaders, emboldened by German Chancellor Olaf Schultz’s November 2022 visit to Beijing, will flock to meet Chinese President Xi Jinping, and the trips of Philippine President Ferdinand Marcos Jr., French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni are likely will motivate others to do the same.
Washington risks resisting economic gravity
Complementary, Washington’s approach to “reducing China’s role” is achieving worse results in the countries of the South. Trade between China and Africa has reached an unprecedented level in 2021, up 35 percent compared to 2020. In contrast, an aggressive US campaign to squeeze Chinese technology companies like Huawei out of the telecommunications infrastructure has fared relatively well. in Europe and India, and weakly almost everywhere else. Let’s take Saudi Arabia, for example, its largest trading partner is China, and in a parallel way, its Vision 2030 reform plan relies heavily on the desired cooperation with Chinese technology companies, including “Alibaba” and “Huawei”, even in sensitive areas that Washington targets directly, such as artificial intelligence and cloud services. As for Indonesia, a huge Asian democracy that Washington has courted with the aim of creating a counterweight to Chinese influence, it has made Huawei its partner of choice in cybersecurity solutions, and even in government systems.
These US efforts are likely to be less successful now that China has reopened its borders. In exchange for the strategy of “reducing China’s role” pursued by Washington, China adopted its own strategy based on “increasing dealings with everyone except America.”
Beijing, too, is rolling back its restrictive coronavirus policies, reopening its borders, courting foreign leaders, and seeking foreign capital and investment to revitalize its economy. Last year, Xi made his first overseas trip since the outbreak of the epidemic, to Central Asia and the Middle East, underlining his strategy to strengthen China’s ties globally. And now, as he resumes his travels around the world again after a three-year hiatus, renewing his pledges on Chinese investment, infrastructure and trade at every stop, it is Washington that may soon find itself disappointed, not Beijing.
Trade rules are a good example of this. In 2017, US President Donald Trump withdrew from the Trans-Pacific Partnership (TPP), and after six years, Washington clearly has no intention of returning to it. Despite this, Beijing applied to join that partnership, which is now called the Comprehensive Trans-Pacific Partnership Progress Agreement (CPTPP). Also, China has ratified the Regional Comprehensive Economic Partnership in Asia, and applied to join the Digital Economy Partnership Agreement. In addition, it has updated or launched new free trade agreements with countries from Ecuador to New Zealand. China is now the largest country in the world in terms of trade volume, as nearly two-thirds of the world’s countries trade more with China than with the United States.
Competition with China begins at home
Meanwhile, the US pursues a “worker-centred” trade policy much like protectionism, and in comparison to it, Washington’s Indo-Pacific Economic Framework initiative looks timid. Indeed, this initiative faces difficulties, not least because it prevents countries joining the agreements the Washington has avoided from accessing new markets.
Washington risks resisting economic appeal. It is true that it has succeeded in controlling the most sensitive technologies, including advanced semiconductors, but it will achieve less success if it pursues a strategy based on encouraging a broader technological decoupling with China, because most countries do not follow the example of the United States and may eventually find ways to adapt .
These efforts to exclude China will certainly hurt them, but at the same time they will cause harm to the US. American companies are at a huge competitive disadvantage, and American consumers are paying the price. One reasonable step to correct this problem is to reduce import tariffs on Chinese consumer goods that make them more expensive for American consumers. These definitions are politically popular but economically inconsequential. They hurt China but also hurt job creators in the US, including ordinary firms dependent on Chinese suppliers and those with few alternative solutions, or crushed by inflation and high energy bills. But these tariffs should not be eliminated without getting something in return. For example, Washington should push China to comply with the terms of the Phase 1 trade deal signed in 2020, including by buying more US agricultural products. Also, he should ask China to open its markets to more American goods.
Solve the issue by discussion
Ultimately, competition with China begins at home. In fact, the US and China have very different political systems. The US excels, but that must be proven by results. This means adhering to the principles that have made the US economy the focus of the world’s attention, and supporting US national security. It also means playing a leading economic role abroad.
It is very important for Washington to win the race to develop technologies and attract talent, as economic success will be largely driven by technological superiority. This requires the US not only to develop these future technologies, but to commercialize them instead of keeping them for themselves. It also calls for setting global standards rather than ceding the playing field to China. By extension, the US should be a leader in trade, rather than withdrawing from the very agreements that China applied to join and denying American workers export opportunities.
Certainly, security tensions are part of this relationship. Indeed, under Xi, China is a formidable competitor with which the United States must take a very tough approach. Beijing pursues policies hostile to US interests in many areas, and it is unlikely that this approach will be modified anytime soon. So, Washington needs to be firm and at the same time fair, open to dialogue but not in its own interest, and to be ready for a difficult, difficult and long path in its endeavor to coordinate with China in a way that serves its goals.
This cooperation has been beneficial in the past. At the height of the 2008 financial crisis, China was a huge owner of bonds belonging to some companies and banks and to the mortgage companies Fannie Mae and Freddie Mac. Also, the close coordination that Washington established with Chinese leaders through the Strategic Economic Dialogue helped it persuade Beijing not to sell US securities, which was crucial in order to avoid another Great Depression. And by extension, the Chinese stimulus package that followed the first G20 summit in 2008 contributed to facing the effects of the crisis and helping the global economic recovery.
Indeed, financial crises cannot be avoided. But if the two largest economies and the two greatest engines of economic growth are able to communicate and coordinate in order to anticipate, thwart and mitigate economic turmoil, managing these crises will be much easier by adopting methods that reduce economic difficulties in both countries and the world. It is in the common interest of China and the United States to do just that, but this will require US Treasury Secretary Janet Yellen and her colleagues to engage in regular dialogue with their Chinese counterparts, discussing and monitoring global and domestic macroeconomic and financial risks.
A shock in the real economy can quickly spill over into the financial system, and financial excesses can wreak havoc on people’s lives if left unchecked. Notably, modern finance, in which money can move around the world at breakneck speed, makes the world seem like a shrinking place. And the Chinese economy is so large and so globally integrated that the turmoil that occurred in China in 2015 and 2021 instantly rippled through global financial markets. Of course, the primary and secondary economic and financial ties between China and the United States are too broad and deep to be easily shaken off, which makes it especially important for the two countries to exchange views on macroeconomic risks. To complete, China is the second largest contributor to long-term US Treasury bonds and is a major investor in other US securities. Therefore, it is in the interest of both countries that China has an understanding of US economic policy and confidence in US policy makers, especially when Congress is in a debate over the debt ceiling. . It should be noted that the lack of transparency about China’s lending to some very troubled economies and the large US commercial investment in the Chinese economy, which can appear opaque to outside analysts and where abrupt changes in policies can catch the market by surprise, means that it is important for both countries to have US policymakers better understand Chinese economic policies and challenges.
Moreover, the United States needs to bolster the defenses that the Biden administration has attempted to put in place in order to hedge against a sharp deterioration. Indeed, this is necessary because the allies and partners that Washington hopes to enlist to pressure China can expect sincere efforts to seek cooperation with it, wherever possible. This is one of the reasons why US President Joe Biden, in his meeting with Xi in Indonesia last November, took steps aimed at preventing a deterioration in relations.
In order to improve coordination between the two sides, decision makers in China and the United States should meet more frequently and talk more frankly. It is worth noting that friendship is not a prerequisite for such coordination. Clear political, security, and ideological tensions do not preclude cooperation based on self-interest on issues such as macroeconomic stability, pandemic preparedness, climate change, combating terrorism, preventing the spread of nuclear weapons, and protecting the global financial system from future crises and the possibility of their spread. In that context, the upcoming meeting of US Secretary of State Anthony Blinken with Chinese State Councilor Wang Yi is a good starting point. In a parallel fashion, Yellin should speak regularly with China’s new economic czar, Heu Lifang. Also, Fed Chairman Jerome Powell should speak to the Chinese central bank governor.
In contrast, Beijing should not restrict cooperation on global issues such as climate change because it is troubled by unrelated issues. In fact, linking different issues in foreign policy undermines China’s efforts to present itself as a constructive solver of global problems.
In addition, the United States must carefully distinguish between what it should get from its allies and what it would get on their benevolent initiative. It is necessary, for example, to control technologies related to weapons and dual and multiple use technologies, and to increase scrutiny of Chinese investments and mergers and acquisitions with international technology companies. On the other hand, Washington need not encourage disengagement in areas unimportant to national security or competition among the world’s democracies in high technology.
But there is a certain level of separation that is unavoidable. In the field of high technologies, some targeted separation will be very necessary, in contrast, wholesale separation is useless. The Americans benefit from access to the world’s markets, and China will remain a huge market that they can either participate in or give up to competitors. Moreover, China is the second largest economy in the world, and ranks first globally in manufacturing and trade. Over the coming decades, the Chinese market will form a large part of the global financial picture. Instead of inevitably accepting an economic iron curtain, Washington should negotiate aggressively with China in order to unlock opportunities that benefit Americans in its market. Administration officials should have serious discussions with the Chinese leadership about how to manage economic decoupling in a way that allows for mutually beneficial trade. Right now, the two countries often trade accusations and counter-accusations while doing nothing to expand mutually beneficial economic opportunities.
Indeed, Sino-American security tensions cannot be dismissed, and Americans, especially after Russia’s brutal invasion of Ukraine, are right to worry that Beijing will use its influence, particularly by subjugating Taiwan. Enhancing deterrence is a big part of the solution, as is improving relations with allies. However, US allies and partners have made no secret of their unwillingness to isolate or contain Beijing. This is a message that Washington must draw from the rest of the world’s refusal to stop dealing with China, and from China’s attempts to create a rift between Washington and the rest of the world.
The political winds are fierce, and many in Congress are dominated by the desire to punish China, even at the expense of the United States. Biden will need great courage to face these challenges with brilliance and audacity.
Blinken’s visit to China and Moscow’s announcement of the visit of Xi Jinping to Russia
The visit of Anthony Blinken US Secretary of State to China comes after the official Chinese announcement of the visit of Chinese President Xi Jinping to Russia within the framework of the US administration’s continuation during the current year of its strategy to confront Chinese military and economic influence in the Indo-Pacific region in the American sense or Asia Pacific in the concept. The Chinese, and to curtail Russian moves with China in the aftermath of the ongoing Russian-Ukrainian war. In addition to the Americans’ attempt during that visit to mobilize more allied countries with it, to line up with the United States of America and its European allies to isolate Moscow internationally, and to build on the American commitments towards the military allies in NATO, to surround and curtail Chinese support provided to Moscow, and to wave a card, regarding the economic sanctions and other restrictions in the event of providing any Chinese support to Moscow and President Putin, especially after the Russian presidential establishment, the Kremlin, officially announced a Chinese visit by President Xi Jinping to Moscow to discuss more ways of joint cooperation between the two sides, which of course raises eyebrows, anger and fears of the Americans towards Beijing and its rapprochement with the Russians.
Hence, Anthony Blinken’s visit to China comes within the framework of the American approach to adopting hard-line American policies towards the Russian bear by trying to surround and restrain it through China, especially after Moscow’s invasion of Ukraine, with the focus of the Biden administration’s national security strategy, which was issued at the end of 2022. However, Beijing represents the greatest geopolitical challenge to the United States of America with its Russian ally. This was preceded by confirmation by US Secretary of State Anthony Blinken in a speech to define the US administration’s strategy towards China, considering it as:
”the only country that can reshape the current international system, and it is increasingly resorting to economic, diplomatic, military and technological power to do so”
Hence the visit of US Secretary of State Anthony Blinken to China in the context of the strict US policy towards Beijing. In addition, there is agreement and near-unanimity at the present time between the Democratic and Republican parties about the threat posed by the Chinese rise economically, militarily, and ideologically to the United States of America, and therefore they support a hard-line approach towards Beijing. In addition to the US administration’s adoption of a set of new economic and military measures to compete with China, which are measures that would undermine US-Chinese bilateral relations, as happened recently with Washington’s imposition of tight restrictions on semiconductor sales to Beijing, to impede Chinese efforts to compete in the field of advanced technologies.
Hence the launch of official US calls by a number of lawmakers in the US Senate and House of Representatives, and US national security officials, to ban a number of Chinese applications, led by the “WeChat” program for social communication between China and the world, and the “Tik Tok” program, due to their danger from Their point of view on US national security, along with America’s attempt to provoke the Chinese side through Washington’s approval plan for an additional arms deal to Taiwan.
This coincided with Washington’s efforts to deepen economic cooperation and military, defense and security partnerships with Washington’s partners in the Indo-Pacific region in the American sense or Asia-Pacific in the Chinese concept, which happened with Washington’s signing of the “Quad agreement” with Australia, India and Japan to undermine Beijing economically, and the “Quad Quadruple agreement”, and the internationally controversial AUKUS of a nuclear defense and security nature between the United States of America, Britain and Australia.
The timing of US Secretary of State Anthony Blinken’s visit to China at the present time comes within the framework of American fears that Beijing will throw its diplomatic weight during the year 2023, after abandoning the relative isolation imposed by the “Zero Covid” policy, and the victory of Chinese President “Xi Jinping” for a third term. At the head of the ruling Communist Party in China, which gave him domestic political influence, America is afraid of turning it into aggressive policies abroad, which Beijing will turn into moves in the American spheres of influence to strike its network of interests regionally and globally.
Here, the importance of the visit of US Secretary of State Anthony Blinken to China as an American attempt to neutralize China mainly towards two issues that concern Washington at the present time, the most important of which is neutralizing China in the face of the support of Russian President “Putin” in his war against Ukraine, in addition to the Americans’ attempt to neutralize China towards Iran and its file. The nuclear deal, especially in the absence of an alternative strategy for the current US administration to contain Iran after the failure of US diplomatic efforts to return to the nuclear agreement again or to impose real pressure on Tehran. Hence, the current US administration is in need to follow a comprehensive strategy to contain the Iranian threat, and reduce Tehran’s support for the (Houthi militia) to enhance regional stability to ensure the security of Israel and the Hebrew state in the first place. This requires American pressure towards China to put pressure on Tehran within the framework of the American deterrence strategy to undermine and confront Iranian activities that destabilize stability in the Middle East region, and not to allow regional or external powers to threaten the movement of freedom of navigation in the waterways in the region and the Arabian Gulf, especially through the Straits of (Hormuz and Bab Al-Mandab), with the American emphasis on not tolerating Iran’s threats against American citizens and soldiers present in the region. This was evident from the conduct of joint naval military exercises and maneuvers between the American and Israeli sides in the Red Sea region near the movement of the straits and sea lanes in that region, in addition to what we previously witnessed of Israeli military naval maneuvers in the Red Sea, in cooperation with the UAE and Bahrain after concluding agreements. Israeli peace with them. In addition to the recent Israeli-American agreement between Washington and Tel Aviv with several Gulf countries to strike Iran to ensure the security of the Arab Gulf region and Israel, which divides the region now and divides the efforts of the international community regarding the issue of striking Tehran, especially by the Chinese-Russian camps and their allies in the face of the American camp. Western and the Hebrew state.
On the other hand, the visit of US Secretary of State Anthony Blinken to China comes within the framework of US-South Korean fears about the issue of the North Korean nuclear challenge, coinciding with those warnings launched by the capital “Pyongyang” through its official media at the beginning of 2023, By increasing its nuclear arsenal, and highlighting the expanded meeting that took place between the North Korean leader “Kim Jong Un” with leaders and members of the ruling Workers’ Party, and the North Korean leader’s assertion of the need to increase North Korea’s military strength, to enhance the deterrence and defense capabilities of his country, by increasing the tactical nuclear weapons production in large quantities, a massive increase in the country’s nuclear arsenal, as well as an increase in North Korea’s arsenal of intercontinental ballistic missiles. Therefore, there is a US-South Korean fear of North Korea conducting a series of nuclear tests near the spheres of influence of Washington and its regional allies in the Indo-Pacific region, led by South Korea and Japan This is what Washington translated militarily in agreement with the capital, “Seoul”, to conduct more joint military exercises between the United States of America and South Korea during the year 2023. With the US administration leading the efforts of the entire international community to condemn North Korea’s nuclear weapons program at the United Nations. Hence, the visit of “Anthony Beijing” to China comes within the framework of the Americans’ attempt to curtail North Korea’s nuclear, military and ballistic program through Beijing.
Hence, we conclude with the attempts of US President Joe Biden and his administration to focus more on US foreign policy issues related mainly to China and Russia, by dealing with the most complex global security challenges faced by President Biden with the beginning of the middle of his first term in 2023 to enhance his chances of winning against his opponent, the Republican candidate, in November 2023.
President “Biden” has already begun to implement the strategy of containing the countries of China and Russia since the moment of his election and assumption of power, even without officially issuing his new strategy for national security, which was evident with his strong statements attacking China and Moscow, which were translated by those successive visits that he made. These were carried out by the current US administration poles, in addition to the meetings that President “Biden” himself held with pivotal countries in the Indo-Pacific region in the American sense or Asia Pacific in the Chinese concept.
Therefore, the visits of US officials to China and the Indo-Pacific region come as a pivotal goal of President “Biden’s foreign policy” in the next stage, represented in containing China, and then the rest of Washington’s foreign policies will be determined, all of which will seek to serve that central and fundamental goal of Washington, and to achieve America’s position of preference. towards China by moving to four main entrances for Washington, which are: the competitiveness of the US economy in the face of Beijing, the strength of American democracy itself and its political system according to the view of US President “Joe Biden”, and the most important thing for the current US administration is the strengthening and vitality of the network of US alliances and partnerships, and confirming own American values with its regional allies and other international partners to undermine the power of Moscow and Beijing.
Tanks Or Talks for Peace in Ukraine
There is something quite unsettling about Joe Biden, the US president: in a long political career, there has never been a war he didn’t like.
He voted for Bush’s Iraq war, and extended the Afghan war by multiplying US force levels. When Vice-President, he supported Obama’s bombings in Yemen (at the behest of Saudi Arabia), airstrikes in Syria, even the bombings in Libya that included the unnecessary destruction of the hugely expensive system conveying water from the south to the capital, Tripoli. Exactly how that helped the Libyan people — the US supposed cause there — is not clear.
No surprise then if Biden has been pushing the reluctant Germans and others to supply Ukraine with Leopard 2 tanks. Newsweek published a full list of countries on the ‘pleasing Biden’ list. A rueful Vladimir Putin reminds his people they will be facing German tanks again as they did in World War II some 80 years ago; except this time he opined Russians will be countering them not with their own tanks but by other means — rockets one supposes. He was speaking at a ceremony marking the end of the WW2 siege of Stalingrad, now called Volgograd but renamed Stalingrad for a day to honor the defenders and the dead.
Russia lost a colossal 25 million people during the war through its effects in disrupting food production and supply, and of course in the actual fighting. In comparison, US casualties ran to about 400,000.
Exactly what the tanks will do remains to be seen — there are only a little more than 400 after all. Perhaps, they could spearhead a thrust at the Russian line of defense that protects the Russian-speaking East. But the Russians won’t be sitting ducks. Putin has hinted at an asymmetric response — heavy bombing of cities perhaps or tank annihilating rockets?
On a geostrategic level, the war can hardly be claimed a political success for the Biden administration. It has weakened Europe’s effort for a tighter economic embrace of Russia — a source of cheap energy for them. That has already seen a decline in Germany’s projected growth rate. Putin, too, wanted closer European ties but all that is in the past now.
Instead, the war has thrown Russia and China together, now forming an axis with Iran. In fact, Russia has recently bought 1700 Iranian drones — unmanned aerial vehicles (UAVs) to conduct attacks against Ukrainian special forces and other military units, as well as targets like munitions and oil storage depots.
Needless to say, escalation in arms seldom brings peace. It is de-escalation and talks, not tanks, that is the logical path to ending the conflict. Always the unimaginable looms in the background. In this case, the nightmare of a miscalculation leading to a nuclear exchange.
When he ran for president in 1988, Biden was dogged with charges of plagiarism. He had been caught using phrases and text from British Labor Party leader Neil Kinnock’s speeches. There was even an attempt to mimic Kinnock’s life story. He was the son of a miner and the first to go to college in his family. Bided began to claim his roots in mining also through a grandfather, who turned out to be a mining engineer, not someone digging at a coal face deep underground.
Far fetched? No. Just a momentary lapse of common sense. Let’s hope he doesn’t lose it in Ukraine.
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