As President Joe Biden prepares for his meeting with Chinese leader Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit, the United States faces a critical choice. Will it yield to demands for confrontation and exclusion, or will it work towards deepening the recent diplomatic opening between the two countries?
The Pitfalls of Confrontation:
Critics of the Biden administration advocate for an abrupt end to discussions with China unless they result in total compliance with U.S. demands. However, such belligerent calls neglect the grave consequences that an intensified conflict between the world’s two most powerful nations could entail. Instead of seeking mutually beneficial outcomes, this confrontational approach risks severing competitive and cooperative connections, paving the way for potential conflict.
The Potential for Collaboration:
On the other hand, there lies a promising opportunity for a symbiotic modus vivendi between the United States and China that could contribute to an inclusive and prosperous global system. While the Biden administration has begun exploring diplomatic possibilities, it finds itself trapped in zero-sum formulations that may bolster exclusionary measures at the expense of both competitive and cooperative opportunities.
The Fallacy of Exclusion as Competition:
The current U.S. policy towards China tends to covertly label antagonistic actions as “competition.” However, it is vital to recognize that exclusion is, in fact, antithetical to genuine competition. Unlike healthy competition, exclusion represents an illegitimate form of aggression, inevitably leading to conflict if the victim possesses the strength to resist expulsion from consequential domains.
A Growing Trend of Exclusionary Policies:
Under the previous Trump administration and extended under President Biden’s leadership, the U.S. has developed an array of exclusionary policies aimed at isolating Chinese businesses from crucial technologies. These measures prohibit Chinese firms from accessing consumers and investments from leading countries, and are even being expanded to sideline Chinese companies in developing economies. These actions, rather than fostering competition, are designed to suppress Chinese growth and remove potential rivals.
The Risks and Limitations of Exclusion:
While the U.S. gambles on excluding China from strategic sectors, hoping it will accept the U.S. version of a rules-based international order, this approach poses significant risks. It challenges the legitimacy of the Chinese Communist Party, which claims to have brought independence and development to China after centuries of oppression. Accepting permanent subordination would be an existential threat to China’s leaders. Moreover, exclusionary policies threaten to impede China’s transition to high-tech sectors, which it considers vital for sustained economic growth.
The Future of Competition and Cooperation:
As U.S. leaders respond to China’s technological advances, calls for further exclusion continue to grow. Nevertheless, an alternative approach lies in nurturing healthy competition rather than seeking to undermine China’s progress. Forging a sound framework for the U.S.-China relationship begins with recognizing a shared interest in urgently needed reforms, rather than indulging in polemics that accuse one another of undermining the international order.
Establishing a New International Common Good:
Addressing global authority and security, the global economy, and the climate crisis requires recognizing the similarities and shared responsibilities of both the United States and China. While some tensions may arise from China’s actions, the nation is also proposing promising reforms that expand the scope for positive-sum outcomes. Washington must shift its approach towards inclusivity, recognizing and building upon China’s constructive proposals.
Market Capital Research 