EditorialChina clearly wants good relations with the US, but is the feeling mutual?

It is a fraught time to be debating “competition or cooperation” between the United States and China. Relations strained by the trade war have been further soured by US moves to sanction officials in Hong Kong and Xinjiang, prompting Beijing to launch a PR campaign aimed at countering “foreign interference”. However, a conference on this choice in New York, organised by the Post with speakers from both sides, turned out to be well timed. It came virtually on the eve of the two sides announcing an interim deal to avoid further escalation of their trade war, which sets the stage for further talks on the range of issues between the two countries touched on at the conference.

Foremost among them was the risk from China-US rivalry to the efficient, secure roll-out of 5G wireless technology and to further innovation, and so-called technological decoupling of the world’s two biggest economies. Conceding the expanded security risks with the use of 5G networks, tech giant Huawei executive Donald Morrissey called on the global telecoms industry to devise standards that met data and national security requirements without regard to a supplier’s country of origin. After all, given that some issues were present in 3G and 4G, the problem is not unsolvable.

While the conference was a chance to bridge a lack of mutual understanding, sentiment on both sides is becoming increasingly toxic. With a presidential election next year, Washington is becoming even more sensitive. Beijing needs a circuit breaker to stop the downward spiral in relations. The interim “phase one” deal is a stabiliser for the China-US relationship, which is critical for China’s own stability. China needs to manage the relationship. This doesn’t mean compromising on core issues but China does need positive news, not least to avoid becoming an even hotter issue in the election.

Beijing understands that US resentments are wide-based and won’t go away with a change of president. The reality is that the phase two negotiation will be long and complex and may take years. Slow progress should not be read as lack of willingness in Beijing.