Page 18 - 2020 White Paper on the Business Environment in China
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two countries as of January 1, 1979. Diplomatic underpinning of US-China relations since then,
rapprochement offered hope that the countries even at times when leaders of an ideological bent
would be able to look beyond their differences were at the helm in one country or the other
to cooperate on the global stage. A great deal (Bader). The Nixon Administration marked the
has changed since then. Forty years ago, China beginning of a period of détente in line with a
was approximately 20 percent urban; today it is general tendency among Americans to favor a
57 percent urban and will reach approximately lower profile in world affairs after the Vietnam
70 percent in 15 years. China had a per capita War which finally ended in 1975 (Hughes). While
GDP of approximately US$175 a year. Today it is improvements in relations with the Soviet Union
approximately 10,000 dollars. Forty years ago, and the People’s Republic of China signaled a
China had very little to sell to the US and a huge possible thaw in the Cold War, they did not lead
appetite for modern products. Today, of course, to general improvement in the international
China is both the world’s largest manufacturing climate. Nixon believed that in negotiating with
country and the world’s largest trading country. China and the Soviet Union, Hanoi would see itself
Forty years ago, China’s science and technology alienated and isolated by both of its patrons who
institutions were basically nonexistent. Today, sought better relations with the United States.
Chinese scientists and engineers are expanding Furthermore, if Beijing were to balance Moscow, the
human knowledge in health care and almost US would have to leave Vietnam with its prestige
every other field of science and technology. Forty intact (RNC). While Nixon tried to use improved
years ago, China’s infrastructure was archaic at relations with the Soviets and Chinese to pressure
best. Today, China has some of the world’s finest North Vietnam to reach a settlement, he could
public infrastructure and indeed is helping less only negotiate a flawed agreement that merely
developed countries build infrastructure in all interrupted, rather than ended, the war (Hughes).
four corners of the world. These extraordinary
achievements were all accomplished over the On July 15, 1971, President Nixon announced
course of one working life time—only 40 years that he’d be visiting the People’s Republic of China
(Allen). Significant issues have always haunted that early the following year. The move proved to be
bond between the two nations. It is a relationship a geopolitical game changer. When President
of economic cooperation, hegemonic rivalry in the Nixon took the oath-of-office in January 1969, the
Pacific, and mutual suspicions. Nevertheless, it has Vietnam War was raging. For the 37th president,
been described by world leaders and academics as rapprochement with China would help the United
the world's most important bilateral relationship States end the war through diplomacy with a
of the 21st century. US-China relations have more powerful Communist country in Southeast
evolved from tense standoffs to a complex mix Asia. It would also put pressure on the Soviet
of intensifying diplomacy, growing international Union, whose relations were frayed with the PRC
rivalry, and increasingly intertwined economies. following clashes on its eastern border. Nixon
landed in Beijing in February 1972. He stepped off
Consequently, ping-pong became a metaphor Air Force One, extended his hand to Premier Chou
for the relationship between the US and China for en-Lai, and ended nearly a quarter-century of non-
the following four decades. Each president from communication. Memorialized by the president
Nixon to Obama stamped out their own vision of as The Week that Changed the World, the trip
how that relationship should be. culminated in the announcement of the joint
US-China Communiqué in Shanghai. Both sides
Richard Nixon agreed to articulate their substantial differences,
make progress towards normalized relations, and
At the core of opening to China was a decision refrain from seeking hegemony in the Asia Pacific
by Nixon and Mao Zedong to put to the side the region. The most significant development came
issues of values and ideology that had kept the from the United States on the issue of Taiwan,
two nations apart and to concentrate instead on affirming that “there is but one China and Taiwan
common interests. This has been the fundamental is part of China,” and that a peace be settled by
Chinese on either side of the Taiwan Strait (RNF).

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