See More on Facebook

Diplomacy, Opinion

Sino-US ties are too important to neglect

Amity, not rivalry, good for Sino-US ties, argues Liu Ying.


Written by

Updated: November 19, 2018

China and the United States are partners, not rivals, in trade, and the Sino-US relationship is one of the most important bilateral relationships in the world. Cooperation between China and the US since the establishment of Sino-US diplomatic relations almost four decades ago has benefited the peoples of both countries, as well as the people in the rest of the world.

Moreover, the US is China’s biggest trade partner while China is the US’ biggest creditor nation. The trade volume between the world’s first and second-largest economies reached $514 billion last year, and the two sides have great potential for deeper cooperation.

True, China has a trade surplus with the US, but the US cannot resolve its trade deficit issue in the short term, because it is the long-term result of economic complementarity, industrial structure and international division of labor. So both sides have to make concerted efforts to balance Sino-US trade.

Three major factors have contributed to China’s trade surplus. First, to maintain the US dollar’s status as the global currency, the US accumulated a trade deficit.

Second, the trade deficit is also the result of the US’ low savings rate, and high demand for high-quality but inexpensive Chinese products.

And third, the US has a big trade deficit also because it has imposed strict restrictions on exports of high-tech products to China. As part of the global value chain, China needs to import hundreds of billions of dollars worth of high-tech products every year. But due to its exports policy, the US, which is a leading producer of high-tech products, cannot balance its imports with exports leading to the trade deficit.

No wonder despite the US imposing high tariffs on Chinese products and instigating a trade conflict with China, its trade deficit hasn’t reduced. And contrary to the US claim that the Chinese market is not open enough, China has attracted more foreign capital than any other country this year. In January to October, China attracted foreign direct investment worth $107.67 billion, up 6.5 percent year-on-year.

China is one of the world’s fastest growing markets and an important export market for the US. Thus, it makes sense for the two countries to cooperate, instead of fighting a trade war.

The trade war the US has instigated is hurting both sides. The recent plunge of the US stock market is one such example. Besides, the Sino-US trade frictions are spreading negative sentiments among global investors, and thus increasing the financial risks.

Since many economists have forecast that the US’ gross domestic product growth will drop in the next two years, the US should cooperate with China, which has a huge consumer market, to prevent a possible economic downturn.
Treating China as a rival, rather than a trade partner, is a serious strategic misjudgment on the part of the US, and by doing so it could bring upon not only itself but also the world a huge crisis.

China made great contributions to stabilize the world economy after the global financial crisis broke out in 2008, helping in the process the US to overcome its serious financial woes. Even after US President Donald Trump assumed office, China and the US have, to a large extent, engaged in mutually beneficial economic and trade cooperation, including the 100-Day Plan and several enormous business deals.

But now the US is treating China as a rival in fields such as trade, technology and diplomacy, prompting China to cooperate with other countries. But the US wrongly believes it can reduce its trade deficit and balance its foreign trade by doing so.

China is not the same country it was four decades ago, nor is the world the same place. Thanks to economic globalization, the global value, industrial and supply chains are closely connected with all the countries. No country can flourish in isolation, and no country can maintain hegemony by provoking trade conflicts. For its own sake, therefore, the US should enhance cooperation with China.

 



Enjoyed this story? Share it.


China Daily
About the Author: China Daily covers domestic and world news through nine print editions and digital media worldwide.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Diplomacy, Opinion

7 of 10 Filipinos worried by presence of Chinese workers

China has increased its presence in the archipelago. The rising presence of Chinese workers in the country worry seven out of 10 adult Filipinos, according to the latest Social Weather Stations (SWS) survey, as the government recently launched a crackdown against Philippine offshore gaming operators (Pogos) which mostly employ Chinese nationals. The noncommissioned survey, conducted from Sept. 27 to 30, found that 31 percent “worried a great deal,” while 39 percent are “somewhat worried.” Highest in Metro Manila The proportion of those who were worried about the increasing number of Chinese workers in the country was highest in Metro Manila at 75 percent, followed by the Visayas at 71 percent, Luzon outside Metro Manila (69 percent) and Mindanao (67 percent.) About half of the respondents agree that the rising number of Chinese workers is a threat to national secur


By Philippine Daily Inquirer
December 6, 2019

Diplomacy, Opinion

Huawei asks US court to overturn ban

The company is suing the FCC, the latest in a series of legal tussles. The legal battle between Huawei Technologies Co and United States government intensified on Thursday. The Chinese tech heavyweight announced a legal challenge to the US Federal Communications Commission, seeking to overturn the latter’s order that bans telecom carriers from buying the company’s equipment via federal subsidies. The move is the latest push by the world’s largest telecom equipment maker to pursue fair competition and treatment amid a slate of restrictions from Washington. Analysts said the FCC ban would have very limited impact on Huawei’s financial performance, but labeling the company as a national security threat would cause far-reaching reputational harm. In a petition filed in the US Court of Appeals for the Fifth Circuit on Thursday, Huawei asked the court to declare the FCC order un


By China Daily
December 6, 2019

Diplomacy, Opinion

North Korea has not given up hope for nuclear talks with US yet

Kim has mentioned a possibility of a ‘Christmas’ gift. Tensions between the US and North Korea have heightened as the two sides exchanged threats and bellicose rhetoric of possible military actions if necessary, amid their stalled nuclear talks. But they appear to have no intention to wind up their diplomacy at least for the next few weeks, experts said. On Wednesday, Heino Klinck, US deputy assistant secretary of defense for East Asia, said the US has been refraining from responding to every single one of North On Wednesday, US Deputy Assistant Secretary of Defense for East Asia Heino Klinck said the


By The Korea Herald
December 6, 2019

Diplomacy, Opinion

No safe spaces for women in Pakistan

Rafia Zakaria writes for Dawn. THAT crime lurks in the streets and corners of Karachi is not news for anyone. Precariousness and predation are the mainstay in this southern corner of the land of the pure; if you have something you are hunted and if you have nothing, you hunt. Destiny damns both, the hunters and the hunted, enacting a dystopian version of The Walking Dead, every day and every night. Karachi is, after all, judged as one of the world’s cities that are least liveable. The scars of it all are visible everywhere, on the bodies and faces of its people, on the hospitals that do not care, and the police that do not protect. This time, the dark forces that breed within the city came for a young girl. According to news reports, 20-year-old Dua Nisar Mangi was ‘committing the crime’ of walking down a city street. This was over the weekend past, and with her was a friend named Haris. It was not suppo


By Dawn
December 5, 2019

Diplomacy, Opinion

Chinese FM to visit India this month for boundary talks

The talks were to be held in September but had to be postponed as the two sides could not find a suitable date for the meeting. Chinese Foreign Minister Wang Yi is expected to visit India later this month to hold boundary talks with National Security Advisor Ajit Doval, sources said on Wednesday. Wang, who is also a State Councillor, and Doval are the designated Special Representatives (SRs) of the two countries for the boundary talks. The talks were to be held in September but had to be postponed as the two sides could not find a suitable date for the meeting. Besides holding boundary talks with the NSA, Wang, a trusted lieutenant of Chinese President Xi Jinping, will meet External Affairs Minister S Jaishankar. He will also call on Prime Minister Narendra Modi.


By The Statesman
December 5, 2019

Diplomacy, Opinion

Pyongyang to hold party meeting ahead of year-end deadline

Kim Jong-un rides up Paektusan again, highlights self-reliance and revolutionary spirit. North Korea will hold a plenary meeting around the end of December to decide on “crucial issues,” its state-run news agency said Wednesday. On the same day, the Korean Central News Agency reported that North Korean leader Kim Jong-un rode up Paektusan on a white horse accompanied by military commanders, raising speculation that the communist regime may take more provocative military actions as the year-end deadline it set for denuclearization talks with the US quickly approaches. North Korea’s Workers’ Party of Korea announced Tuesday that the 5th Plenary Meeting of the 7th Central Committee of the WPK would convene around the end of December, Korea Central News Agency reported, “in order to discuss and decide on crucial issues in line with the needs of the development of the Korean revolution and the chan


By The Korea Herald
December 5, 2019