Opinions
2019.05.04 10:04 GMT+8

China-U.S. trade talks must conclude in good faith

Adam Garrie

Editor's Note: Adam Garrie is the director of the UK-based global policy and analysis think tank Eurasia Future and co-host of talk show "The History Boys." The article reflects the author's opinion, and not necessarily the views of CGTN.

China and the United States held the tenth round of high-level economic and trade talks on April 30 and May 1. Chinese Vice Premier Liu He, also a member of the Political Bureau of the Communist Party of China Central Committee, led the Chinese delegation during the China-U.S. comprehensive economic dialogue. He co-hosted the talks with U.S. Trade Representative (USTR) Robert Lighthizer and U.S. Secretary of the Treasury Steven Mnuchin.

Although statements from both sides have been sparse, both sides nevertheless appear to be quietly confident that many gaps have been narrowed and that an overall conclusion to the talks will arrive sooner rather than later. 

It must be acknowledged that the trade war was started in bad faith. The very name "trade war" implies an atmosphere of hostility which runs contrary to win-win cooperation within the framework of a rules-based international trading system.

A group photo of the Chinese and U.S. trade negotiators at Diaoyutai State Guesthouse in Beijing, China, February 15, 2019. /VCG Photo 

The situation became all the more awkward when businesses and business representatives in both countries decried the situation as China and the U.S. are both reliant on one another for two-way trade that feeds crucial international supply chains and benefits the people of both countries. In particular, the world's largest business association, the U.S. Chamber of Commerce vocally opposed the trade war from the beginning and continues to do so.

But this is now recent history and several important lessons have been learned over the course of the last year. 

First of all, although Donald Trump's rhetoric has been particularly exorcized when it comes to China, he has also used very harsh rhetoric against long-time U.S. trading partners including the European Union, Canada, and Mexico. In terms of coming under new U.S. tariffs in the Trump era, even traditionally close U.S. partners including the Republic of Korea (ROK), Japan, Turkey, and Israel have not been exempt, nor has India.

This means that while it might be tempting to say that Donald Trump reserves a unique dislike for China, this is not in fact true. Trump continues to view trade through a hyper-nationalistic and protectionist paradigm that is very old fashioned, but it is not specifically aimed at any one country.

The fact that China is the largest source of imports to the U.S. has however naturally made China a major target for Trump. This, however, has more to do with China's economic success than with Chinese cultural or political characteristics themselves.

It is, therefore, crucial to note that when communicating to the public online, Trump frequently refers to Chinese President Xi Jinping as his "friend" or "good friend." Although concrete action steps are needed to resolve the trade war, Trump's fraternal words about Xi are indicative of the fact that an atmosphere of trust is being built.

It is absolutely necessary for both sides to build trust throughout the process of trade talks because although the trade issue between China and the U.S. had less than good-faith origins, it can nevertheless be resolved on a win-win model built on trust.

It would also be helpful if Americans who support the trade war were to have better information about China's continued reform and opening-up. China continues to open its markets to more imported goods than at any time in contemporary history.

U.S. President Donald Trump (R) meets with Chinese Vice Premier Liu He (across the table) and trade talk representatives from China and the U.S. in the Oval Office of the White House in Washington, February 22, 2019. /VCG Photo

This presents manufacturers in multiple countries including the U.S. with a golden opportunity to more easily enter one of the world's most dynamic, large and growing domestic markets. Even prior to recent reforms, the iconic American luxury car Cadillac sold more vehicles in China than in any other country. This is a positive element of China-U.S. trade that is scarcely discussed in the U.S. media.

China is also welcoming ever expanded levels of foreign direct investment as the legal system governing foreign investment has been streamlined, modernized and simplified so that it is now easier than ever for foreigners to inject capital and do business in China. China also continues to reform and open up financial markets, thus demonstrating Chinese enthusiasm for participating in international global finance at the highest and most integrated levels.

This makes it clear that far from hiding behind an economic fortress, China's economy is focused on a high-quality growth model that entails openness and cooperation with the rest of the world, including the United States. If everyone in the U.S. was exposed to this information, it would help to paint a more accurate picture of a China that is modern and one that seeks win-win opportunities with the widest possible variety of partners.

With all of this in mind, this is clearly the time to finalize discussions on trade and reach a conclusion that gives businesses in China and the U.S. better opportunities to trade with one another, invest in one another's ventures and cooperate across multiple fields including the tech sector. 

The trade war may have begun with a zero-sum mentality but it needn't end in such a way.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com.)

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