China agreed with US to boost climate co-operation over the next decade, in a surprise announcement at the COP26 climate summit in Glasgow. It says both sides will “recall their firm commitment to work together” to achieve the 1.5C temperature goal set out in the 2015 Paris Agreement. China is the world’s largest emitter of carbon dioxide, followed by the US.
China’s Sinopec (600028.SS) has signed a contract with U.S. Venture Global LNG to buy 4 million tonnes of liquefied natural gas (LNG) annually for 20 years. The deal is the largest LNG long-term contract signed between Chinese and U.S. companies.
China “resolutely opposes” Washington’s revocation of China Telecom Corp Inc’s licence to operate in the United States, urging a reversal of the move. The US Federal Communications Commission cited national security concerns for the move, saying China Telecom targeted its mobile virtual network at more than four million Chinese Americans; two million Chinese tourists a year visiting the United States; 300,000 Chinese students at American colleges; and the more than 1,500 Chinese businesses in America.
The Latest Data Proves That Chinese-US Trade Is Mutually Beneficial
29 OCTOBER 2021
The latest trade data shows that the American business community doesn’t agree with continuing former US President Trump’s counterproductive trade war, nor are they boycotting Chinese products due to the tensions that incumbent US President Biden has provoked with the People’s Republic.
China released its latest trade data in early October showing that trade surged 35.4% from January to September compared to the same period last year to reach $543 billion. This should be celebrated by both sides despite the administration of former US President Donald Trump and his successor Joe Biden regarding it as a sensitive issue. The reason for this is that such data is a sign of mutually beneficial relations considering the economic and geopolitical context.
Regarding the first, this proves that China is playing a major role in helping American retailers refill bare shelves, according to unnamed economists quoted by the Associated Press. The US’ ongoing supply chain crunch is beyond China’s control to fix because it’s due to domestic issues related to the American labor market and other such factors, but it nevertheless shows that Chinese imports are beneficial for that country’s consumers. Without them, their economic crisis would be much more challenging.
Concerning the geopolitical context, the latest trade data shows that the American business community doesn’t agree with continuing former US President Trump’s counterproductive trade war, nor are they boycotting Chinese products due to the tensions that incumbent US President Biden has provoked with the People’s Republic. This community is the epitome of pragmatism and their reasonable interests should be listened to in Washington. Policymakers must realize that trade can de-escalate tensions, not exacerbate them.
These two observations combine to inspire a new path forward for Chinese-American relations. Quite clearly, the US government’s anti-Chinese hostility has had no negative affect on bilateral trade. To the contrary, as the latest data confirms, trade remains surprisingly strong. The latest trade data demonstrates the complex economic interdependence between China and the US, which has been made all the more important as a result of the COVID-19 pandemic.
Imagining for a moment that former US President Trump had succeeded in “decoupling” their economies or that the business community boycotted Chinese products out of solidarity with incumbent US President Biden, the economic situation for ordinary Americans would have been much worse than it presently is. It’s precisely because those two leaders’ anti-Chinese policies have failed in the economic sense that American living standards haven’t plummeted even more. China is therefore responsible for helping the American people.
Some might deny this “politically incorrect” claim for self-interested ideological reasons, but it’s undeniable considering the two contexts that were earlier examined. Although American policymakers might be loath to admit it, they nevertheless acknowledge the positive role that China is playing in helping their people, even if they hadn’t ever intended for it to do so. This gives cautious optimism that they might not further escalate the hitherto static trade war between them for pragmatism’s sake, at least not in the near future, hopefully.
Of course, the influential military-industrial complex’s congressional lobbies and the neoconservative ideologues in the US government have selfish reasons to hope that relations comprehensively worsen between China and the US, but policymakers must realize how counterproductive this would be. The ruling Democrats cannot afford for the American economy to suffer any more than it already is by curtailing trade ties with China if they hope to retain control of Congress during next year’s midterm elections.
The ideal scenario would be for the Biden Administration to seriously consider a meaningful rapprochement with China. The continuance of former US President Trump’s anti-Chinese policies has failed to “decouple” their economies, which are more intertwined than ever before and at such a crucial moment in world history at that. Trade should form the basis upon which bilateral ties can improve. Selfish forces mustn’t be allowed to sabotage this promising possibility. Hopefully common sense, pragmatism, and mutual interests will prevail.
Worried over “significant” national security concerns, the United States banned China Telecom from operating in the country, straining already tense relations between the superpowers to a greater extent. The move marks the latest salvo in a long-running standoff that has pitted the world’s biggest two economies against each other over a range of issues including Taiwan, Hong Kong, human rights, trade and technology. It also comes as U.S. President Joe Biden presses ahead with a hardline policy against Beijing broadly in line with that of his predecessor Donald Trump, whose bombastic approach sent tensions soaring.
China’s Sinopec signed a deal with US liquefied natural gas (LNG) developer Venture Global LNG that will double China’s imports of LNG from the US. Last week, Cheniere, located in Texas, signed a long-term LNG supply contract with China’s ENN Natural Gas, the first major US-China deal since 2018. Over the past three years, new LNG deals between the two great powers were put on ice as rising political tensions under the Trump administration thwarted trade. Expect more supply deals of this kind to be announced in future, as China faces an energy crunch and has now overtaken Japan as the world’s largest LNG importer.
China urged the United States to stop abusing state power to suppress Chinese firms, after the U.S. Federal Communications Commission stated earlier this week that it would be launching a new program to help replace all the Huawei-made equipment in the country’s networking infrastructure. The so-called “national security” is nothing but a clumsy excuse for the United States to implement national bullying and trade protectionism against Chinese high-tech companies, China Foreign Ministry said.