Opinion | The US and China complement each other. Decoupling doesn’t make sense for either nation, or the world at large

Centuries ago, when China was the world’s biggest economy, it did not become a hegemonic power. Nor will it now. And, in the years to come, the US-China trade relationship is only going to become more complementary

Reading Time:6 minutes

People walk past an Apple store in Beijing. Presidents Donald Trump and Xi Jinping have agreed to a new truce in a year-long trade war between the US and China. Photo: AP

Published: 1:00am, 12 Jul 2019Updated: 3:52am, 12 Jul 2019

The recent meeting in Osaka between US President Donald Trump and Chinese President Xi Jinping gives us hope that the US-China trade relationship can move forward again. Immediately before the Osaka summit, many of us sensed that the people of the United States and China, and in particular the business world of the two countries, want to see progress being made in the discussions. Trade negotiation is always difficult, and maybe there will be setbacks but, in the end, I believe that common sense will prevail.

My assignment today is to talk about US-China relations – where we are now, and where we want to be in the future.

The modern-day US-China relationship began 47 years ago in February 1972, when President Richard Nixon visited Chairman Mao Zedong in Beijing. But, it was not until 1979 that US-China diplomatic relations were formally established by Jimmy Carter and Deng Xiaoping. Since that time, six US presidents and five leaders of China have pursued policies to ensure that the relationship moves forward positively.

Today, however, there are people in the US who, for one reason or another, advocate a so-called “decoupling” of US-China relations. They argue that China has taken too much advantage of the United States. This is an important topic, and as someone who has spent half of his life promoting US-China relations, I think you know where I stand, but please allow me to make my case.

To start with, I think that it is important for everyone to understand China’s priorities, where she came from, and where she plans to go from here. Over the past 40 years, China has made great strides in improving its economy and the welfare of its people, with hundreds of millions of Chinese being pulled out of poverty. Never in the history of mankind have so many people been pulled out of poverty in such a short time.

Nevertheless, at the end of 2018, per capita income in China was still only US$10,000, as compared with the US, where per capita income was over US$60,000. Indeed, the country has some way to go to satisfy the Chinese people’s aspirations for a better life. In order to achieve that, internationally, China will continue to collaborate with other nations in the areas of trade, commerce, investment, etc.