“. . . . But both sides are not equally to blame. The Xi era in U.S.-China relations, which began in 2012, has led the relationship steadily downhill. China went too far on a broad range of issues.
Start with business. For many years U.S. companies thought they had enough market share inside China that they would tolerate the stealing of intellectual property and other trade abuses China engaged in. But in the last decade, China started to overreach, and the American Chamber of Commerce in China began to complain louder and louder. Gradually, many in the U.S. business community, which was a key buffer in the relationship, began to endorse Donald Trump’s hard-line approach (although they don’t like paying tariffs).
Since Xi took power and made himself effectively president for life and tightened the Communist Party’s control over all matters, U.S. journalists working in China have had their access sharply curtailed; China has become more aggressive in projecting its power into the South China Sea; it’s become more fixated on subsidizing its high-tech start-ups to dominate key industries by 2025; it is imposing a new national security law to curtail longstanding freedoms in Hong Kong; it’s stepped up its bullying of Taiwan, taken a very aggressive approach toward India and intensified its internment of Uighur Muslims in Xinjiang; it’s jailed two innocent Canadians to swap for a detained Chinese businesswoman; and it even hammered countries that dared to ask for an independent inquiry into how the coronavirus emerged in Wuhan.
After Australia’s prime minister called for such an investigation in April, China’s ambassador to Australia brazenly threatened economic retaliation, and a few weeks later China cut off beef and barley imports from Australian companies, citing bogus health and trade violations.
That is the kind of crude bullying that has helped to strip China of virtually every ally it had in Washington — allies for a policy that basically said, “We have different systems, but let’s build bridges with China where possible, engage where it is mutually beneficial and draw redlines where necessary.”
That balanced policy approach always had to contain serious tensions, ugliness and disagreements on issues — but in the end it delivered enough mutual benefit to be sustained for 40 years. That balance is now off as far as many Americans are concerned. I am one of them.
As Orville Schell, one of the most sensible advocates of this balanced approach, wrote in an essay a few weeks ago on TheWireChina.com: “Today, as the U.S. faces its most adversarial state with the People’s Republic of China in years, the always fragile policy framework of engagement feels like a burnt-out case. … A recent Pew poll shows that only 26 percent of Americans view China favorably, the lowest percentage since its surveys began in 2005.”
But if China has increasingly overreached, America has increasingly underperformed.
It is not just that China reportedly has fewer than 5,000 Covid-19 deaths and America has over 120,000 — and the virus started there. It is not just that it takes about 22 hours on Amtrak to go from New York to Chicago, while it takes 4.5 hours to take the bullet train from Beijing to Shanghai, slightly farther apart. It’s not just that the pandemic has accelerated China’s transformation to a cashless, digital society.
It’s that we have reduced investments in the true sources of our strength — infrastructure, education, government-funded scientific research, immigration and the right rules to incentivize productive investment and prevent excessive risk-taking. And we have stopped leveraging our greatest advantage over China — that we have allies who share our values and China only has customers who fear its wrath.
If we got together with our allies, we could collectively influence China to accept new rules on trade and Covid-19 and a range of other issues. But Trump refused to do so, making everything a bilateral deal or a fight with Xi. So now China is offering sweetheart deals to U.S. and other foreign companies to come into or stay in China, and its market is now so big, few companies can resist.
Summing up the relationship today, McGregor, of APCO Worldwide, noted: “I don’t know if the Chinese are taking America seriously anymore. They are happy to just let us keep damaging ourselves. We have to wake up and grow up” — and get our own act and allies together. China respects one thing only: leverage. Today, we have too little and China has too much.