Page 170 - 2021 White Paper
P. 170
1 White Paper on the Business Environment in China
foreign policy advisers hope to collaborate with value propositions along with the anxieties its
China on issues such as climate change, nuclear power provokes. And he’ll want to persuade a
non-proliferation and pandemics, even as they skeptical Beijing that his administration’s China-
confront Beijing vigorously on national security, focused activities reflect respect, not animosity,
trade and human rights. Meanwhile, Chinese and could be the pathway to an agreeable modus
Foreign Minister Wang Yi has proposed that vivendi. According to Harvard Business School
the two countries sort their bilateral issues into senior lecturer Andy Zelleke, China and the US
three buckets: areas in which they can cooperate, must both recognize that “winning” decisively
disagreements that might be solved by dialogue, isn’t possible. Because Beijing has reason to
and conflicts which they must manage and believe the trajectories of power likely favor it,
control. Any chance Biden and Xi have of not Washington, it’s essential that the US first put
establishing such a modus vivendi, however, is the power balance sustainably in its favor — by
likely to be fleeting. Given how intertwined the revitalizing itself at home, and by coalition with
major issues defining US-China relations are capable, contributing partners. That said, the US
and how little trust there is between them, a should be clear throughout that the end game is
breakdown is virtually guaranteed if they don’t one where China — while denied hegemony in
steady relations quickly. To have any chance, the Asia and globally, as a matter of core US policy —
US and China first need to set the boundaries of would be peacefully accepted as a superpower.
their competition and build realistic expectations Could China accept this endgame? It would fall
for cooperation. That’ll require both Biden far short of the ideal. But a glass half full view
and Xi to take some political risks. The first would be that this limited containment effort
task should be to restore high-level channels would make room for China’s almost certainly
of communication. Diplomatic reengagement developing, over time, the world’s biggest
should help in developing a near-term action economy, perhaps by a large margin, along with
plan to restore a basic level of stability to bilateral very healthy market share in many of the most
relations. Also urgently needed is a restoration technologically advanced industries — though
of the cultural exchanges severed in the past short of Made in China 2025’s aspiration to
year, which have traditionally provided much- dominance. However, Biden will lead a divided US.
needed ballast to the relationship. For starters, His administration will have to work with senators
China must welcome back American journalists and representatives from diverse constituencies
expelled in 2020 and allow them to report with and make compromises in order to strike deals
fewer restrictions. The US should reciprocate that equip the county to confront the challenges
by removing equivalent restrictions on Chinese of the 21st century, including its strategic rivalry
journalists working in the US. For its part, with China. It will be messy and challenging, and
the Biden administration should undertake a progress will not be linear. But this is not a new
thorough review of the steps taken in the waning story—it is a very old one. Chinese leaders pride
days of the Trump administration and consider themselves on taking a long view. The US faces
suspending, modifying or reversing measures plenty of foreign and domestic challenges today,
that are of questionable utility and difficult to including in its democratic institutions. But in
implement. Taking such steps would cost each the long view, its democracy is not a source of
leader a moderate amount of political capital. weakness; it is a source of strength (Zelleke).
Avoiding them in hopes that the relationship will
stumble along regardless could cost the US and
China far more (Pei).
Biden must lead the US to become a better,
stronger, and more united version of itself
if it is to meet the challenge that China’s rise
presents. He will have to reach a meeting of
minds about China with more partner nations
— for whom, generally, China offers compelling
170
foreign policy advisers hope to collaborate with value propositions along with the anxieties its
China on issues such as climate change, nuclear power provokes. And he’ll want to persuade a
non-proliferation and pandemics, even as they skeptical Beijing that his administration’s China-
confront Beijing vigorously on national security, focused activities reflect respect, not animosity,
trade and human rights. Meanwhile, Chinese and could be the pathway to an agreeable modus
Foreign Minister Wang Yi has proposed that vivendi. According to Harvard Business School
the two countries sort their bilateral issues into senior lecturer Andy Zelleke, China and the US
three buckets: areas in which they can cooperate, must both recognize that “winning” decisively
disagreements that might be solved by dialogue, isn’t possible. Because Beijing has reason to
and conflicts which they must manage and believe the trajectories of power likely favor it,
control. Any chance Biden and Xi have of not Washington, it’s essential that the US first put
establishing such a modus vivendi, however, is the power balance sustainably in its favor — by
likely to be fleeting. Given how intertwined the revitalizing itself at home, and by coalition with
major issues defining US-China relations are capable, contributing partners. That said, the US
and how little trust there is between them, a should be clear throughout that the end game is
breakdown is virtually guaranteed if they don’t one where China — while denied hegemony in
steady relations quickly. To have any chance, the Asia and globally, as a matter of core US policy —
US and China first need to set the boundaries of would be peacefully accepted as a superpower.
their competition and build realistic expectations Could China accept this endgame? It would fall
for cooperation. That’ll require both Biden far short of the ideal. But a glass half full view
and Xi to take some political risks. The first would be that this limited containment effort
task should be to restore high-level channels would make room for China’s almost certainly
of communication. Diplomatic reengagement developing, over time, the world’s biggest
should help in developing a near-term action economy, perhaps by a large margin, along with
plan to restore a basic level of stability to bilateral very healthy market share in many of the most
relations. Also urgently needed is a restoration technologically advanced industries — though
of the cultural exchanges severed in the past short of Made in China 2025’s aspiration to
year, which have traditionally provided much- dominance. However, Biden will lead a divided US.
needed ballast to the relationship. For starters, His administration will have to work with senators
China must welcome back American journalists and representatives from diverse constituencies
expelled in 2020 and allow them to report with and make compromises in order to strike deals
fewer restrictions. The US should reciprocate that equip the county to confront the challenges
by removing equivalent restrictions on Chinese of the 21st century, including its strategic rivalry
journalists working in the US. For its part, with China. It will be messy and challenging, and
the Biden administration should undertake a progress will not be linear. But this is not a new
thorough review of the steps taken in the waning story—it is a very old one. Chinese leaders pride
days of the Trump administration and consider themselves on taking a long view. The US faces
suspending, modifying or reversing measures plenty of foreign and domestic challenges today,
that are of questionable utility and difficult to including in its democratic institutions. But in
implement. Taking such steps would cost each the long view, its democracy is not a source of
leader a moderate amount of political capital. weakness; it is a source of strength (Zelleke).
Avoiding them in hopes that the relationship will
stumble along regardless could cost the US and
China far more (Pei).
Biden must lead the US to become a better,
stronger, and more united version of itself
if it is to meet the challenge that China’s rise
presents. He will have to reach a meeting of
minds about China with more partner nations
— for whom, generally, China offers compelling
170
