By Zhong Sheng
China and the U.S. officially signed the phase-one economic and trade agreement in the White House on Jan. 15, 2020 local time.
The high-level signing ceremony was witnessed by over 200 executives and accompanied by lasting applauses, which signaled the aspiration for a truce of the trade war.
It is recognized that this result is a step forward to a solution that conforms to the common interests of both China and the U.S., and benefits the world peace and prosperity.
The active responses given by the international market on Dec. 13, 2019, when the two countries declared they have agreed on the text of a phase one economic and trade agreement, are still remembered today. It demonstrated the excitement of the enterprises and markets of both countries. A U.S. official even described that the agreement amounts to “probably the most momentous day in trade history ever.”
In contrast, before the message was released, Managing Director Kristalina Georgieva of International Monetary Fund (IMF) cited Russian poet, Alexander Pushkin to describe the global economy in last October, saying “The breath of autumn begins to ice the roadway”. That’s why she hailed that China and the U.S. have reached a strong trade deal at the signing ceremony of the phase-one trade deal.
China-U.S. trade relations had an unusual experience in the recent two years. The two countries went through confrontations and signs of reconciliation, which worried the international society and created uncertainties for the global economy.
The public, from both China and the U.S., as well as the rest of the world, are in urgent demands of a global supply chain and a global value chain that run virtuously. They anticipate the general trend of economic globalization to bring prosperity.
How to conform to and lead this trend has become the most important responsibility of the largest two economies of the world.
To stop the trade war, both parties must meet each other halfway and manage disputes. Great philosopher Mencius in ancient China said, “Things are born to be different.”China and the U.S. differ in history, culture, tradition, social system, and development path and phase.
To treat the differences in an objective and rational manner, to explore the significance of mutual learning and common progress dialectically, and to profoundly comprehend the importance of cooperation remain the only right choice for the two countries. To blaze a trail of win-win results and seek common ground while shelving differences calls for remarkable strategic vision and political wisdom.
Since 2018, the heads of state of both China and the U.S. have held two meetings and had seven phone calls, building consensus, setting principles and guiding the direction for solving the China-U.S. economic and trade issue.
Under the guidance of the consensus reached between the two heads of state, the two countries held 13 rounds of high-level economic and trade consultations. The chief of the Chinese side of the China-U.S. comprehensive economic dialogue had over 20 phone calls with U.S. Trade Representative and Treasury Secretary.
It was an arduous progress, during which China had always stayed rational and calm and responded from the perspective of the common interests of both parties as well as the world trade order despite rains and storms. China has observed the principle of resolving disputes through dialogue and consultation, and answered the U.S. concerns with the greatest level of patience and good faith. The Chinese side has been dealing with these differences with an attitude of seeking common ground while shelving divergence. It has overcome many difficulties and proposed practical solutions.
The trade deal is a hard-won result coming from alternative fights and talks, as well as setbacks – a process during which China and the U.S. have seen each other’s resolutions and capabilities. Only by guiding practices with correct philosophy can the two countries be worthy of the efforts they have made.
To be objective, the phase-one economic and trade deal manifests the concerns of both China and the U.S., and is reached based on the principle of equality and mutual respect.
The trade deal proves that win-win cooperation is a mainstream that China and the U.S. must stick to during economic and trade cooperation. As long as they always respect each other’s national dignity, sovereignty and core interests, they can overcome the difficulties as they march forward.
To obey the agreement helps China and the U.S. expand trade cooperation, especially the optimization of resources and the restructuring of economy. It will also project a more stable expectation for both Chinese and U.S. enterprises, as well as global investors. This represents the common interests of global producers, consumers and investors.
China-U.S. economic and trade relations went from the historic handshake between late Chinese Premier Zhou Enlai and late U.S. President Richard Nixon to the “cooperation across the Pacific Ocean”, and both countries should maintain sound momentum for development of this relationship.
The phase-one economic and trade deal reached between China and the U.S. is generally in line with the direction of China’s efforts to deepen reform and expand openness, and conforms to the internal demand of China to promote high-quality economic development.
China will continue to run its own affairs well, and deepen reform and expand openness according to its own development. The basic trend of steady long-term growth for China’s economy remains unchanged.
As China’s domestic market keeps expanding, Chinese enterprises will increase the import of high-quality and competitive products and services from other countries including the U.S. in accordance with the rules of the World Trade Organization as well as market and commercial principles, which will facilitate the consumption upgrading and help the country meet people’s ever-growing needs for a better life.
Cooperation is better than friction, and dialogue surpasses confrontation. The solving of the China-U.S. trade issue is long-term, complex, and onerous in nature, and it calls for unremitted efforts to safeguard the economic and trade cooperation between the two countries.
The practices over the past 40 years since China and the U.S. established diplomatic ties prove that a peaceful and harmonious bilateral relationship between these two countries will always make both winners, while a confrontational one will make both losers.
As long as they respect each other’s core interests and major concerns, obey the rules of equity and mutual respect, and have an unshakable resolution, there will always be more solutions than obstacles.
At present, the two countries have agreed to establish a bilateral assessment and dispute settlement mechanism, which is of vital importance for them to jointly make constructive plans through consultation, avoid further escalation, and protect stable development of bilateral economic and trade relations.
Xi said in his speech delivered at the 2017 World Economic Forum in Davos, Switzerland that in the face of both opportunities and challenges of economic globalization, the right thing to do is to seize every opportunity, jointly meet challenges and chart the right course for economic globalization.
In the same year when meeting his U.S. counterpart, the Chinese President also stressed that there are a thousand reasons to make China-US relations a success, but not a single reason to break it.
China and the U.S. share broad common interests and are very influential for the healthy and stable development of the world economy. At present, China-U.S. economic and trade relations are on a new starting point, and the two countries are shouldering huge responsibilities to take care of the interests of the people from both countries and the rest of the world, to propel a China-U.S. relationship based on coordination, cooperation and stability, and to always grasp the correct direction of history.
(Zhong Sheng is a pen name often used by People’s Daily to express its views on foreign policy.)
