Analyses of current China-US relations vary.
While some observe the intense trade dispute and root causes behind
it, I prefer to judge the relationship as strong and good.
It may have problems, but the two sides of the relationship are
making efforts to resolve the problems.
Philosophically, it is better to have problems than not to have.
You never have problems if you don't interact. You have more
problems the more you interact.
It is critical to have interactions.
China has not forced America to buy Chinese goods. This is a
different age than back in 1853 when the Perry Expedition opened
Yokohama through Gunboat Diplomacy.
It is American businessmen who voluntarily closed their factories,
packed the production lines and invested them in China.
It is the American merchants who voluntarily come to China to order
large quantities and then sell Chinese goods back home.
And now Americans are buying so many Chinese goods, largely with
inherent US or Asian technology and investment, that the trade
imbalance has mounted to some US$200 billion according to US
customs.
Relations are good, at least better than if America had no interest
in buying Chinese goods. But in the meantime, one has to address
the deeper reasons behind any conflicts.
In this context, China's currency conversion is of the highest
concern to America. Apparently, China needs to render the Renminbi
more flexible in reflecting the market economy, but this shall be a
function of time.
China has appreciated its currency 3 percent since last year.
Even though more might be expected over time, this can't fix the
trade imbalance as the US is not competing with China alone, but
with a group of peer developing countries which have weaker
economies than America but stronger labor competitiveness.
At a time of globalization, America needs to address fair trade for
sure, but more fundamentally revitalize its economic edge through
domestic reform in education and renovation of science and
technology.
Balance the trade
China can buy more American manufactured goods if they are
competitive and available.
Actually the US industrial, agricultural, animal husbandry as well
as service sectors all present such opportunities.
The two sides need to open up regular and constant trade, rather
than some one-time shopping spree.
And, although the US is unwilling to sell some dual-use technology
on the grounds of national security, the Chinese can still consume
American beef and fruits, provided that mad-cow disease is
prevented and transgenic foods are adequately handled.
In a world moving toward freer trade, a government needs to balance
legitimate protection of home industries and fair international
competition.
An emotional issue between the two countries is the protection of
intellectual property rights.
Respect others
This is truly where governments are tested for their willingness
and capabilities to implement internationally and domestically
bound obligations.
Pirating can reap short-term benefits, but will probably hurt
long-term economic prosperity.
With China-US cooperating to fix these problems, China is sure to
emerge as a more respectable stakeholder.
However, would this alleviate the US concerns? Probably not.
America tends to believe that its system is the most optimal and
the rest of the world ought to follow if they aspire for
prosperity.
However, oft-times the Washington Consensus may not sell well, as
an ideal model would have both domestic and foreign policy
components.
A self-perceived optimal system hasn't yielded a sensible policy on
Iraq, and it has refused to cooperate in reducing global
warming.
For a long time, the US has intervened in China's Taiwan issue,
leaving at least 1.3 billion people in the world with no respect
for America due to its contempt for international law and China's
sovereignty.
A country asking for trade fairness should not treat other's
sovereignty unfairly.
All these make the Washington model imperfect and undercut its
credibility.
The Beijing Consensus, however, is also not ready to be sold
successfully.
The Beijing model is able to fly when more sound domestic patterns
will be set that address more adequately social justice,
environmental protection and ecologic preservation.
President Hu Jintao's visit to the US next week will usher in a new
era of Sino-US relations, and their respective paradigms can be
viewed as healthily competitive and complementary.