China-US talks : A Fruitful Outcome

At the just-concluded S&ED, the two countries vowed to take concrete measures to give shape to the agreement reached between the two heads of state, and emphasised the importance of expanding and deepening cooperation, and narrowing differences.

An important feature of the new relationship is no conflict, no confrontation. For example, after former National Security Agency operative Edward Snowden exposed Washington’s surveillance programme, the two sides did not point the finger at each other but instead, held candid and constructive discussions, and agreed to hold more talks on international norms to manage cyberspace. 

Second, that the Strategic Security Dialogue and the first Cyber Working Group meeting were held along with the fifth S&ED shows the two countries are keen on managing bilateral relations with an eye on long-term benefits. 

Third, the two sides reached a consensus on a number of important issues. For example, they have agreed to start discussions on a Bilateral Investment Treaty, which has not seen much progress over the past nine years, and the US also promised to offer an open investment environment for Chinese enterprises.

Besides, the two have decided to explore the possibility of setting up a mechanism to inform each other of major military activities and to continue talks on the rules of military, including maritime, activities. This is a major step forward because military-to-military relations will help build trust. 

The two have also decided to establish a hotline between the special representatives of their presidents to facilitate smoother and uninterrupted bilateral communication, which is necessary given the importance of the relationship. The need now is for the two sides to continue talks on all fronts, let each other know their intentions, enhance mutual trust and avoid misunderstandings.

The other important areas that the two agreed to cooperate in are climate change and energy security, and transparency, which is a step in the right direction to improve bilateral relations.

Fourth, the S&ED covered all major global issues reflecting the responsibilities China and the US shoulder in global governance. To overcome the global financial crisis, the US introduced quantitative easing (QE), but now has decided to taper it off. Since Washington’s policies have a significant impact on the global financial market, global economic recovery and emerging economies, China has welcomed the withdrawal of QE but suggested that the Federal Reserve properly handle its timing, tempo and intensity to ensure the rest of the world does not suffer its consequences.

But just one dialogue cannot solve all the problems. The two sides still differ on some issues, and continuous communication is needed to narrow them. In some regional issues, for instance, China has been urging the US to respect the facts and refrain from doing anything that could further complicate the issues. Moreover, the US is yet to fulfill its promise of easing restrictions on high-tech exports to China. Also, China is waiting for the US to consider requests as Washington reforms its export control system.

But generally, the S&ED has achieved the expected goals and is an important step forward toward building a new type of major power relationship.

 

* Tao Wenzhao is a senior researcher at the Centre for US-China Relations at Tsinghua University.