Sound Sino-US relations will bolster global confidence, say analysts, hailing Xi’s role, stance

Efforts to stabilize business ties between China and the United States and prevent economic “decoupling” will prove beneficial for companies and consumers in both countries, amid factors including mounting instability and uncertainty in the global economy, experts and business leaders said on Nov 12.

They also said, amid a much-welcomed meeting between the leaders of the two countries, that more positive signals need to be sent, as they can help bolster confidence in both countries’ economic growth and the global economic recovery.

Zhang Yansheng, chief researcher at the China Center for International Economic Exchanges, said, “There are some extremists in the US who pursue ‘economic decoupling’ from China, and it is critically important for the two countries to rely on stable and high-level communication and dialogue mechanisms to discuss matters of concern and improve bilateral economic ties.

“As they are the world’s largest economies, improvement to their economic relations will inject greater positive energy into the world economy, especially as inflation in the US persists while global investment and trade slow down sharply,” Zhang said.

Furthermore, uncertainties in China-US economic relations have negatively impacted the development of other countries that rely heavily on global trade.

Li Haidong, a professor at China Foreign Affairs University’s Institute of International Relations in Beijing, said that restrictive US measures toward China, particularly in the field of advanced technology, will ultimately backfire. 

Zhang said it is unfair for the US to have added so many Chinese enterprises to its “entity list”, an export blacklist, and it is of great significance for China to voice its concerns over matters like that via dialogue. 

“To be responsible for both their people and those of the rest of the world, the two countries must reach consensus that they need to maintain good economic relations and jointly safeguard world development,” he said.

“The US should take concrete actions to promote bilateral economic relations, while China stays committed to further deepening reform and expanding opening-up to strengthen economic and trade ties with the US,” Zhang added.

Lyu Shuping, president for China and Asia at Xylem Inc, a US-based water technology provider, emphasized that harmonious China-US business ties contribute to the growth of US companies operating in China.

A dragon dance and lion dance performance gets underway on Nov 11, 2023 at San Francisco’s Chinatown, as part of the city’s efforts to attract tourists and participants to the upcoming Asia-Pacific Economic Cooperation meeting. (FENG YONGBIN / CHINA DAILY)

Despite external uncertainties, China has become Xylem’s second-largest single market — behind only the US — by sales revenue, as well as a long-term market of strategic significance, Lyu said.

Xylem has not only expanded its presence in the Chinese market but also exported its products manufactured in China to a large number of economies participating in the Belt and Road Initiative and to nearly all signatory countries of the Regional Comprehensive Economic Partnership agreement, Lyu added.

On Nov 9 and 10, Vice-Premier He Lifeng and US Treasury Secretary Janet Yellen held multiple rounds of “candid, pragmatic, in-depth and constructive” talks in San Francisco. 

The talks helped facilitate a meeting between President Xi Jinping and his US counterpart Joe Biden. Experts said the meeting between the two heads of state was much anticipated after they reached an important consensus during a meeting last November in Bali, Indonesia.

Vice-Premier He, who represents China in dealing with economic and trade ties with the US, was invited by Yellen to visit the US from Nov 8 to 12.

Liao Min, vice-minister of finance, said at a news briefing in San Francisco that major points of consensus were reached during the talks between He and Yellen.

Both sides agreed to strengthen communication, seek consensus, manage differences, and avoid unintended escalation of friction due to misunderstandings, Liao said.

They also emphasized that China and the US do not seek economic “decoupling”, and agreed that the two countries will work together to combat common challenges and cooperate on issues including climate change and the debt of low-income and emerging economies.

Meanwhile, China has expressed its concerns regarding the US’ restrictions on two-way investments, sanctions against Chinese companies, export controls, and additional tariffs.

Yellen said during a news briefing on Nov 10 that the relationship between the US and China is “one of the most important relationships of our time”.

“The path it takes will shape opportunities and challenges for people in both our countries and around the world,” she said. 

Analysts said progress in ties between Beijing and Washington has come about as President Xi has further developed and built on a set of methodologies for effectively handling relations with the US in the new era.

Posters for the Asia-Pacific Economic Cooperation meeting are seen on Nov 11, 2023 in San Francisco, California, the United States. (PHOTO / AFP)

At the center of this approach is Xi’s proposal of the three principles for approaching China-US relations — peaceful coexistence, mutual respect, and win-win cooperation, they said.

When meeting with a bipartisan US Senate delegation led by Majority Leader Chuck Schumer last month in Beijing, Xi reiterated the three principles, saying that “planet Earth is vast enough to accommodate the respective development and common prosperity of China and the US”.

Diao Daming, a professor at Renmin University of China’s School of International Relations, said, “Beijing has been faithful and consistent in acting on the three principles as proposed by President Xi, which is an overarching philosophy.

“Cooperation is the only right path forward, and there is a widespread sincere wish in US communities to see the two nations move toward the same goal and yield greater benefits by fulfilling these three principles,” Diao said.

The Chinese president has always been an earnest advocate of exchanges between the two countries at various levels, including official contacts and public diplomacy.

Xi’s efforts and words have triggered positive responses from all walks of life in both countries.

David Chong, founder and president of the US-China Youth and Student Exchange Association, co-signed a letter in July from his association and friendly people in Washington state, which the Chinese president replied to in August.

Chong told China Daily that they sent Xi the co-signed letter because they were inspired by Xi’s June meeting with Bill Gates as well as by Xi’s remark that “the foundation of China-US relations lies among the people, the hope is in the people”.

“We wanted to let President Xi know that there are many people back in the US expecting the friendship to be passed on,” he added.

Besides Xi’s personal push, another key impetus for recent signs of stabilization of ties is that China has been steadfastly offsetting Washington’s strategy and impulses in recent years to contain and suppress China, prompting the US to take steps recently to help cool down tensions, observers said. 

“Through recent interactions with Beijing, Washington has witnessed China’s resolute approach for securing its own sovereignty, security, and development interests, and China has made powerful pushbacks to US provocations,” said Su Xiaohui, deputy director of the China Institute of International Studies’ Department of American Studies. 

“Therefore, the US has had to reconsider how to deal with the China-US relationship.”

Observers said both sides should fully carry out the important consensus reached by the two presidents in Bali, and that Washington should rein in negative domestic factors that target China.

Chinese Ambassador to the US Xie Feng told the Hong Kong Forum on US-China Relations on Nov 9 that “there remains a long way to go to stabilize and improve the bilateral relationship”. 

He emphasized that more efforts are needed to foster a sound atmosphere, achieve positive outcomes, and take solid follow-up actions. 

Contact the writers at zhongnan@chinadaily.com.cn