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Opinion / Op-Ed Contributors

Finding the way to walk the talk

By Shen Dingli (China Daily) Updated: 2013-07-09 07:10

Despite this, the US' "rebalancing" to the Asia-Pacific region and the mutual apprehension between Beijing and Washington remain striking issues. Though US Secretary of State John Kerry has expressed his reservations over the rebalancing, the US' move to deploy 60 percent of its global naval assets in the Asia- Pacific has naturally invited China's suspicion. In spite of its repeated claims that the move is not aimed at China, the recent US naval drill with the Philippines a short distance from Huangyan Island has alarmed China about the US' intent. In this context, the upcoming S&ED offers a fresh opportunity for the two militaries to address each other's concerns.

Economically, China and the US are facing both opportunities and challenges. With slower economic growth, the two countries will be less bothered by their ever-expanding trade imbalance, but it will be more difficult for China to appreciate its currency. Their economic slowdowns have pressed both countries to transform their growth model, making energy innovation a new area of collaboration, as well as competition. And while the US has set up barriers in the name of national security against Chinese investment, its own IT business enjoys free access to the Chinese market. Such an imbalance between business and security has to be addressed at the S&ED.

The two governments have set up a climate change working group within the Economic Dialogue. As the two largest economies and energy consumers, China and the US shoulder particular responsibility in addressing global climate change. With the transformation of each other's industrial structure, Beijing and Washington have taken a more proactive stance in meeting the challenge. Taking responsibility within their capacity is the right approach to collaboratively combating global warming.

There are many great opportunities ahead for China and the US. After pondering for a while over the impact of the Trans-Pacific Partnership, China seems more relaxed about it. Though obviously China is not ready to meet the many standards of the TPP, Beijing wants to raise its production, labor and service levels so they are more competitive. The latest round of the S&ED presents a chance for the two countries to communicate on how to upgrade global free trade to a higher stage.

The author is professor and associate dean of Institute of International Studies, Fudan University.

(China Daily 07/09/2013 page8)

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