In the world's hour of need, China-US pact can be a climate changer
Andy Xie says we all need the United States and China to work together if the world is to unite to tackle global warming and promote free trade
Last week's Apec summit in Beijing demonstrates the power of cooperation between China and the United States. Significant progress was made on two of the biggest issues in the 21st century - climate control and free trade.
Global warming is probably the most important issue of this century. It has existential consequences for mankind. Even with a low probability of a worst-case scenario, the extreme consequences still warrant maximum effort by all countries to prevent it. Indeed, it is worth a major reduction in living standards. However, every country is hoping that others will do the heavy lifting. Hence, the world has so far witnessed a game of chicken in the negotiations on climate control.
Only China and the US could patch together a global climate deal. The two account for more than 40 per cent of global greenhouse gas emissions and their commitment to time-bound targets will push other countries to join a global pact.
Some US politicians have been quick to argue that China doesn't have to do anything for 16 years and is getting off lightly in this deal. That is far from the truth.
First, by 2030, China's per capita income will range between US$15,000 and US$20,000 at today's price levels - less than half the current level of nations in the Organisation for Economic Cooperation and Development, the international trade forum. It is a huge sacrifice for China to accept peak emissions at such a low income level.
Second, being the world's factory may account for one-third of China's current emissions. Without China's high levels of manufacturing, Europe and the US wouldn't be able to cut their emissions so easily. If this factor is taken out, then China's total emissions are similar to those in the US and per capita emissions are only about a quarter.
Third, China has a short history of emissions. The stock of greenhouse gas in the atmosphere is overwhelmingly from OECD countries. China has used the argument to justify a temporary period of high emissions to develop its economy. Now it has committed to the 2030 peak, it is showing it is willing to stop the wrongdoing, as others have.