Trade friction probably leads to a new-pattern Sino-US cooperation
By CCWE |
China Watch |
Updated: 2018-07-10 09:01
Editor's note: The Center for China in the World Economy of the Tsinghua University unveiled its latest working paper on June 8, 2018, which focuses on current China-US trade friction. Following is an abstract of the report.
First and foremost, we believe the trade friction between the United States and China are rooted in the significant changes in domestic political and economical structures of both countries. In the US, the “elite America” and the “traditional America” are competing intensively, which, however, share a common target, China. In China, since 2012 when the 18th National Congress of the Communist Party of China convened, the country has charted out its own development path and system, entering into the new era of Socialist modernization. The changes occurred in the two countries have caused the fundamental changes in Sino-US relations after US President Donald Trump took office, and this is the fact we must face squarely.
Second, we should make clear the bottom line when confronting the austere situation. We believe that Sino-US relations will not lead to all-out confrontation, and China can entirely afford the cost of Sino-US trade friction. Firstly, China and the US share inseparable interests. American multinational firms have extensive and important interests in China, and the US also needs China's support and participation in the dollar hegemony system. Secondly, the currently more prevailing “traditional America” represented by Trump and the “China in the new era” are strategically complementary. Thirdly, we believe that China could draw experience from history and manage differences accurately. It will not give extremists or provokers any opportunity.
Thirdly, China must maintain its strategic resolve when facing challenges brought by trade friction with the US. In the short term, Beijing needs to seize the initiative in the trade war to gain an upper hand in future cooperation. In the long term, China should prepare for an enduring trade war and contain unreasonable exaggerations of public opinion; at the same time, it should take concrete measures to advance reforms and strategies.
Last but not least, we think the trade friction will lead to a new pattern of Sino-US cooperation if we deal with it properly. This new pattern should be characterized by three aspects or three “accepts”. First, the US accepts China’s differentiated way of political and economic development while understanding the differences; Second, the US accepts China is a leading power in neighboring areas as the most populated country and the future No 1 in economy; Third, the US accepts China’s active role in improving global governance towards win-win cooperation.
This new pattern of Sino-US cooperation must and will be accomplished. It will be a crucial step for the great rejuvenation of the Chinese nation.
The Center for China in the World Economy of the Tsinghua University contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.
All rights reserved. Copying or sharing of any content for other than personal use is prohibited without prior written permission.
Editor's note: The Center for China in the World Economy of the Tsinghua University unveiled its latest working paper on June 8, 2018, which focuses on current China-US trade friction. Following is an abstract of the report.
First and foremost, we believe the trade friction between the United States and China are rooted in the significant changes in domestic political and economical structures of both countries. In the US, the “elite America” and the “traditional America” are competing intensively, which, however, share a common target, China. In China, since 2012 when the 18th National Congress of the Communist Party of China convened, the country has charted out its own development path and system, entering into the new era of Socialist modernization. The changes occurred in the two countries have caused the fundamental changes in Sino-US relations after US President Donald Trump took office, and this is the fact we must face squarely.
Second, we should make clear the bottom line when confronting the austere situation. We believe that Sino-US relations will not lead to all-out confrontation, and China can entirely afford the cost of Sino-US trade friction. Firstly, China and the US share inseparable interests. American multinational firms have extensive and important interests in China, and the US also needs China's support and participation in the dollar hegemony system. Secondly, the currently more prevailing “traditional America” represented by Trump and the “China in the new era” are strategically complementary. Thirdly, we believe that China could draw experience from history and manage differences accurately. It will not give extremists or provokers any opportunity.
Thirdly, China must maintain its strategic resolve when facing challenges brought by trade friction with the US. In the short term, Beijing needs to seize the initiative in the trade war to gain an upper hand in future cooperation. In the long term, China should prepare for an enduring trade war and contain unreasonable exaggerations of public opinion; at the same time, it should take concrete measures to advance reforms and strategies.
Last but not least, we think the trade friction will lead to a new pattern of Sino-US cooperation if we deal with it properly. This new pattern should be characterized by three aspects or three “accepts”. First, the US accepts China’s differentiated way of political and economic development while understanding the differences; Second, the US accepts China is a leading power in neighboring areas as the most populated country and the future No 1 in economy; Third, the US accepts China’s active role in improving global governance towards win-win cooperation.
This new pattern of Sino-US cooperation must and will be accomplished. It will be a crucial step for the great rejuvenation of the Chinese nation.
The Center for China in the World Economy of the Tsinghua University contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.
All rights reserved. Copying or sharing of any content for other than personal use is prohibited without prior written permission.
