Dialogue Mechanism Leads to New Sino-U.S. Relations

By+ZHANG+XUDONG

IN his 1961 inauguration address President John F. Kennedy said： “If a beachhead of cooperation may push back the jungle of suspicion， let both sides join in creating a new endeavor – not a new balance of power， but a new world of law – where the strong are just， and the weak secure， and the peace preserved. All this will not be finished in the first one hundred days. Nor will it be finished in the first one thousand days； nor in the life of this Administration； nor even perhaps in our lifetime on this planet. But let us begin.”

This famous remark signifies the human resolve to work for lasting peace in the gloomy years of the Cold War. Half a century later history comes to another turn， and China and the U.S. must choose what kind of world they will share.

In a sense， todays Sino-U.S. ties demand the same courage and commitment seen in China 30-odd years ago， when it began reforms by “crossing the river by feeling the stones.” Over the past 35 years， Sino-U.S. relations have survived many rocky periods and evolved into a barometer of international relations.

From the very start， cross-Pacific ties have been anchored on three realms of cooperation – politics， trade and economy， and people-to-people exchanges. Over the past decade the dialogue mechanism between China and the U.S. has stood out around the world with its increasing frequency and maturity. At the top of this mechanism are the China-U.S. Economic and Strategic Dialogue （S&ED） and the High-Level Consultation on People-to-People Exchanges （CPE）， supported and supplemented by various sub-dialogues and discussions. These contribute as a whole to a maturing Sino-U.S. relationship.

On July 9-10， 2014 the sixth round of S&ED and the fifth round of CPE talks convened in Beijing. Chinese President Xi Jinping attended the joint opening ceremony and delivered a speech entitled “Work Hard to Build a New Model of Major Power Relationships between China and the U.S.” President Barack Obama also sent a message.

Xi remarked that， in 1979， Deng Xiaoping enjoined both countries to view China-U.S. relations from a longterm strategic perspective and in the context of the global situation. Over the next 35 years， despite profound changes in the international environment and conditions in both nations， China-U.S. relations have overcome difficulties and continue to move forward. The reason is that several generations of leaders in both countries have consistently given new meanings and motivation to Sino-U.S. relations. Today， both sides should better observe the times and creatively explore new prospects in bilateral cooperation.endprint

In his written speech President Barack Obama welcomed the emergence of a stable， peaceful， and prosperous China. He is committed to joining hands with the Chinese side to build a new model of major power relationship， strengthen practical cooperation and resolve divergences in a constructive manner.

Observers have noted that Americas vision is somewhat different from Chinas proposal of a relationship characterized by “no conflict， no confrontation， mutual respect and cooperation with win-win results.” It will take time for the U.S. to fully embrace the Chinese concept. It is significant， however， that the two sides have broadened their consensus on this issue， building up resolve and moving towards the same strategic goals.

At the opening ceremony of the sixth round of S&ED State Councilor Yang Jiechi underscored the importance of jointly constructing the new relationship， treating one another with sincerity and respect， understanding each others strategic intentions and avoiding strategic misjudgment. He called for both parties to stand firm and persist in their efforts.

Secretary of State John Kerry said in his speech that the U.S. is committed to constructing a relationship of reciprocity and mutual benefit with China， promoting common interests through cooperation and constructively addressing their differences. The U.S. does not believe that conflicts are inevitable between the two countries.

Such affirmative remarks from both China and the U.S. are encouraging， but the shadow of suspicion still lurks between the two countries. Judgments of one anothers strategic intentions have direct influence on their policies and the path of bilateral ties. During the dialogue Mr. Kerry reiterated that the U.S. does not seek to contain China. “We may differ on one issue or another， but when we make that difference， do not interpret it as an overall strategy. It is a difference of a particular choice，” he told the audience.

Strategic Security

At the July dialogue Yang Jiechi and John Kerry discussed five major issues – constructing a new type of major power relationship between China and the U.S.， deepening pragmatic cooperation， properly managing differences， promoting positive interactions in the AsiaPacific， and jointly responding to major global and regional affairs.

Mr. Yang expected the S&ED to play a better role as an“accelerator” for China-U.S cooperation and “buffer” for their contentions， contributing to sustained， healthy and stable development of bilateral ties. But when it serves as the accelerator and when as the buffer depends on the nature of the particular issue the two countries face.endprint

There are tangible divergences between the two countries concerning core issues such as sovereignty disputes and regional security， over which clashing interests make it difficult to reach consensus. Currently the most prominent of these are the disputes over the islands and waters in the East China Sea and the South China Sea， Internet security， and protection of commercial interests.

Some media take progress in these hot issues as the yarstick in judging the success of China-U.S. dialogue， giving the wrong impression that disagreement over these few issues would derail the China-U.S. relationship. Based on this logic， some critics even claimed that China-U.S. ties are at their lowest level since 1979. This opinion is shallow and trivial.

In his speech at the sixth round of S&ED President Xi Jinping urged the two countries to respect each other， seek common ground to resolve differences， and avoid being confused by an event or upset by a remark. He compared them to veteran fishermen， sitting firmly on the deck with composure despite gales and waves.

For the strategic track of the S&ED， the two sides also held dialogues on strategic security， economic development and reform， climate change policy， as well as further consultations on UN peacekeeping， Sudan and South Sudan issues， and fighting illegal wildlife trade. The two sides signed an Eco Partnership Program.

This strategic track has reached 116 achievements covering eight areas， including cooperation in energy and climate change， environmental protection， science， and several other important fields.

Also important is that China and the U.S. have vowed to increase exchanges and collaboration between their militaries， and to increase communication and coordination on Asia-Pacific issues to build a more stable， peaceful and prosperous region.

A highlight of this round of dialogue is bilateral cooperation on energy and climate change. Remarkable progress has been made since the two countries established the Climate Change Working Group in 2013. Joint efforts have focused on reducing greenhouse gas emissions， increasing carbon fixation， recycling and sequestration， improving energy efficiency， and developing smart power grids.

Mr. Kerry declared during the dialogue that the participation of private businesses and academic institutions have brought greater diversity and dynamics into their cooperation. Under the framework of the Eco Partnership Program， Chinese and American partners have carried out exploratory cooperation in such fields as energy saving， energy efficiency， clean energy， ecological conservation and the circular economy. The results will boost economic growth， energy security and sustainable environmental development.endprint

Trade and Economic Opportunities

For the economic track of the S&ED， forums were held on macroeconomics and structural reforms， deepening cooperation in trade and investment， opening and reform of the financial industry and cross-border supervision. Nearly 90 achievements were reached.

At present， negotiations are underway on several major pacts， and substantial progress has been made. Among them are the Information Technology Agreement （ITA） and the Bilateral Investment Treaty （BIT）. The former will be a priority at the APEC meeting convened later this year. During the S&ED representatives from both countries dis- cussed the expansion of the ITA and agreed to restart plurilateral negotiations. The BIT will have far-reaching impacts on future ties between China and the U.S. During the July dialogue the two countries agreed to reach a consensus on major provisions of the BIT by the end of 2014， and promised to initiate negotiations on the “negative list” in early 2015. The U.S. promised to maintain an open investment environment for Chinese investors.

Over the 35 years since the establishment of full diplomatic ties， bilateral trade has ballooned more than 200 fold， exceeding US $520 billion in 2013. Cumulative twoway investments top US $100 billion， and for the first time Chinas investments in the U.S. surpassed the U.S.s investments in China. Growing two-way investment is playing a bigger role in job creation and economic growth in both countries.

The two sides also agreed to strengthen financial cooperation. The U.S. pledged to treat China fairly in its export control system and encourage high-tech exports to China. The two sides will coordinate policies on shadow banking， over-the-counter derivatives regulation， crossborder audit inspection and international insurance mat-ters. The signing of an inter-governmental agreement on the Foreign Account Tax Compliance Act （FATCA） also drew wide attention.

On macro economic policies， both parties made compromises and commitments. China promised to cut interference with the exchange rate， allowing it greater flexibility under market forces. The U.S. will work to further cut its federal budget deficit， lower the debt-GDP ratio and pay more attention to the impact of its currency policies on the global financial system. The two countries will work jointly in the APEC later this year， and strengthen coordination and cooperation in mechanisms such as the G20.endprint

People-to-People Exchanges

“A foreigner takes a bath， a riddle！ The answer is ... hotpot mutton.” This linguistic pun， whereby the Chinese for “foreigner” sounds the same as that for “mutton，”brought laughter from the audience. This is an episode at an event celebrating the 35th anniversary of student exchanges between China and the U.S. during the 2014 High-Level Consultation on People-to-People Exchange（CPE）， which focuses on forging closer links between the two countries youth.

Three more activities were organized for the Consultation – a school cooperation program proposed by the two first ladies Peng Liyuan and Michelle Obama， the award ceremony for winners of the China-U.S. Young Makers Competition and a dialogue between young researchers at Chinese and American think tanks.

Vice Premier Liu Yandong looked back on the numerous fruits of the CPE over the past five years. Thirteen deals in four fields were struck in the first round of the Consultation， which has now extended to 104 deals in six fields. Among the areas discussed are education， science and technology， culture， sports， women and youth. Nearly 200 deals have been reached over the five years. So far the two countries have more than 240 pairs of sister provinces/states and cities， and operate a number of exchange mechanisms including the China-U.S. Governors Forum and several economic summits.

Student exchanges have enhanced understanding between students and peoples in the two countries. Trough the Triple 10，000 Plan， China promised to invite 10，000 American students to study in China， invite 10，000 American visitors through the Chinese Bridge program， and send 10，000 Chinese PhD students to study in the U.S. The USAs 100，000 Strong Initiative represents a similar commitment from the American government. As Abraham Lincoln once said， “Nothing valuable can be lost by taking time.” A 2013 Gallup survey found that 72 percent of Americans aged 18-29 regard China an ally or friend.

People-to-people exchanges are the vanguard and trailblazer in China-U.S. relations， and hence serve as the lubricant in the new model of major power relationship between the two countries. To this end China and the U.S. should respect each other， cultivate the concept of equality and inclusiveness among their peoples， and carry out pragmatic cooperation to lay a solid foundation for their future relations. They must make persistent efforts to jointly foster a future of peace and development.endprint

In 2009， the establishment of diplomatic relations between the two countries passed the 30-year mark， the “age of independence” for a man in China. As it approaches 40， the “age of reason，” arguments remain heated and it is unclear whether the two countries are moving towards a brighter or a darker future. Whether they will be friends or foes， with peace or conflict， remains under debate. The division between the pros and cons is broad. The questions dont stop here. In which direction should China and the U.S. move their relationship？ Is the current cooperation meaningful and conducive to shared goals？ The world needs clear-cut answers for these critical questions， which are not easy to come by. As the old Chinese maxim says， it is easier to speak than to act.

Henry Kissinger wrote in his recent book： “I am aware that the cultural， historical， and strategic gaps in perception that I have described will pose formidable challenges for even the best-intentioned and most farsighted leadership on both sides. On the other hand， every great achievement was a vision before it became a reality.” This is relevant to the new model of major power relations which China and the U.S. are working on. High-level communication channels like the S&ED and the CPE are stepping stones which will create a path for the Sino-U.S. relations to move forward.endprint