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From Bad to Better: How to Improve the U.S. China Relationship

Posted on Sep 5, 2018

The U.S. – China relationship has been a rollercoaster ride in the past couple of decades, going from very high to extremely low and now lingering around the mid-lows. Bi-lateral economic trade and co-operation on the defense front play a significant role in how strong the relationship between the two countries would succeed in today’s time. Even though China continues to remain the most significant trade partner of the United States, with bilateral trade touching close to $700 billion, there are differences among the countries that need to be resolved. One of the most significant differences in the approach of the new U.S. Government towards China’s very restrictive private sector that doesn’t open up to the foreign investors and companies.

The Chinese economy has been slowing down in the past few years after growing in double digits for consecutive years. However, even as China’s economy has been slowing down, the pace at which its consumers’ spending is increasing is nothing short of impressive. If the Chinese government opens up their private sector to the foreign investors and financial players, it can make a huge difference in the relationship with the China US Foundation. Also, some entities in China are facing heat from the U.S. administration due to their cyber-theft attempts and allegations. The Chinese government needs to take these allegations seriously and make sincere efforts to regulate such happenings from their soil. The entertainment, telecommunications, internet, and finance sectors in China are also closed to foreign players, whereas the United States has welcomed the foreign investors and players.

These differences in the state and national policies are playing the significant role in creating differences between these two major players in the world politics. The United States government is looking for reciprocation from their Chinese counterparts regarding trade as well as economic regulations. It is for these reasons that the Trump administration levied some sanctions against the Chinese investors and the overall bilateral trade to create a balance. Also, China’s ruthless dominance in the disputed South China Sea has been an underlying issue for long that needs to be addressed by both the nations. While China says it is a no-topic, the allies of the United States have been pushing the topic for international discussion. The bilateral talks on several fronts are crucial to not only improve transparency and communication but to improve the overall relationship between the two major players in the world economy.