Art of deal is making all parties happy
If this week’s high-profile trade negotiations between China and the United States can produce positive outcomes, that would not only serve the interests of both countries but also benefit global trade and the world economy.
And there is no reason why the negotiations should be a damp squib if the US delegation led by Treasury Secretary Steven Mnuchin is willing to discuss the bones of contention between Beijing and Washington with the genuine intent to listen as well as talk.
Turning a deaf ear to China’s side of the story will mean the delegation returns home empty handed, the tit-for-tat tariff proposals become a reality, and the whole world, including the US, feels the subsequent pain.
China wants the talks to produce feasible solutions to put an end to the ongoing feud and unfair US trade practices. And it is not alone in wanting this. The US’ unilateral and protectionist moves have created worldwide uncertainty and met opposition from an increasing number of countries.
The European Union, for instance, has said bilateral trade with the US should be “balanced and mutually beneficial”, and stated it “will not negotiate under threat”.
Nor will China. It will stand up to the US bullying as necessary. And as a champion of globalisation, free trade and multilateralism, it will have strong support from the international community.
China’s resolve to fight trade protectionism is buttressed by the consensus in the country, among both its leaders and the public, that the achievements it has made over the last 40 years should not be jeopardised by an outside power seeking to take advantage of the country, as happened in the past.
But that is jumping the gun somewhat. There is no reason why the talks should prove disappointing if both sides engage in them with the desire to resolve their differences on trade and other issues. Tariffs, after all, are the means to an end. And that end is the compromises that will seal a deal.
Certainly China will engage in the talks in the right frame of mind. Its stance remains consistent: dialogue is the way to quell the fracas and it is willing to be reasonable, however, it will not give in to threats.
The US wants greater access to China’s market, but it should not use trade actions as a battering ram to force China to open its doors. It is already in the process of opening them wider. And in doing so, it expects that action to be reciprocated and the US to open its market to Chinese investments and competition from Chinese enterprises.