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China trade
Opinion
Dominic Ng

Opinion | Keeping US doors open to Chinese imports and investment need not compromise national security

  • The US must recognise the benefits to American workers from trade and investment with China and understand that the bulk of US-China economic engagement is irrelevant to national security concerns
  • Even in sectors where there may be potential risks, Washington has tools to mitigate them

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Workers make stuffed toys for export inside a factory in China’s Shandong province in June 2018. Toys continue to be one of the top US imports from China. Photo: Reuters
At the virtual meeting between US President Joe Biden and Chinese President Xi Jinping last month, the two leaders took steps to stabilise the relationship. By finding common ground on climate change, relaxing restrictions on journalist visas, and setting “guardrails” to prevent armed conflict, they are making efforts to manage the relationship despite differences.

But debates in Washington over the right level of openness towards China are nowhere near settled. Many Trump-era barriers remain in place, and even more are being discussed in Congress.

To coexist and compete with China, the US needs to be clearheaded about how to balance the dual needs of economic growth and security. Finding this balance will not be easy, but there are steps we can take to make the challenge easier.

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This starts by recognising that American workers benefit from trade and investment with China. Exports to China support more than 1.2 million US jobs. Chinese companies invested in the US directly employ nearly 200,000 Americans.
The presence of US businesses in China drives growth, revenue and innovation – boosting jobs back at home. Preserving these ties is critical to keeping inflation low, employment high and the economy humming.
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The next step is understanding that, despite the rhetoric, the bulk of US-China economic engagement is irrelevant to national security concerns. It is easy to forget that the top five categories of US imports from China are consumer goods: computers, cellphones, furniture, toys, and other plastics. These goods alone comprise a third of US imports from China.

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