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And the Twain Shall Meet

Written by Hammad Raza  •  Special Features  •  January 2010 PDF Print E-mail
1The US and China may have formed a ‘G-2' but their new house of harmony is not without frictions. The sun of President Bush's legacy, marked by a disastrous doctrine of unilateralism and designs of preemptive strikes, seems to be sinking over the horizon as Obama has embarked on a policy of reconciliation with major powers - emerging and emerged. His recent visit of Obama to China speaks volumes of the tectonic shift that has occurred in the decision-making circles inside the White House. The improved relationship between the two giants is of great significance as many analysts have already predicted the arrival of a new world order - commonly, but not officially, called the ‘G-2.' But this newly-built house of harmony is not without any frictions.

A brief glance at the evolving relationship between the two states can briefly be described as their interest in the development of free market economies based on extracting optimal benefits accrued from the trade between two global giants - one military and the other economic. For the US, the overreaching influence of the American system is of paramount importance for its survival as business the class sways all other arenas: politics, economy and society. In a nutshell it can be called a business-run society. The best business centre in today's world is in China. Here lies the core of their relationship, but with divergence of interests as the world is facing a new phase in global order. The United States is not an economic powerhouse, however militarily, it is still unmatchable. The total amount it spends on military budget surpasses all the combined military budgets of the next hundred states. China, on the other hand, is using its economic power to gain ascendancy in world politics. Cheap Chinese goods have inundated global markets to an unprecedented level.

Critics of the US president say he is downplaying what was once a central tenet of US foreign policy, the promotion of human rights and democracy, in order to persuade China to help the United States achieve its foreign policy goals. But Obama insists America "will never waver in speaking up for the fundamental values that we hold dear."

The United States and Russia have still found plenty over which to clash. The United States has pushed hard for further political and economic reforms in Russia, while Russia bristles at what they see as meddling in internal affairs. The United States and it allies in NATO have invited new, former Soviet nations to join the alliance in the face of deep Russian opposition. Russia and the United States have clashed over how best to settle the final status of Kosovo and how to tackle Iran's efforts to gain nuclear weapons.

In the late 60s and, at the height of the Cold War, both countries had a reason to start negotiating in hopes of a rapprochement. For China, the border clashes with the Soviet Union in 1969 meant that a closer relationship with the US might provide China with a good counterbalance to the Soviets. The same effect was important for the United States as it looked for ways to increase its alignments against the Soviet Union in the Cold War. The rapprochement is symbolized by the historic visit of Nixon and Kissinger to China.

The disintegration of the Soviet Union re-inserted tensions into the relationship as both countries lost a common enemy and the United States became an undisputed globally hegemonic state. Adding to the tension is China's rise as a global economic power and the expansion of its influence to resource rich areas such as Africa, offering an alternative model to the United States, usually termed the Beijing consensus. The more recent opening of the Chinese economy has meant closer and increased trade relationships between both countries.

The direct investments made by the United States in China particularly cover areas such as manufacturing, hotel projects, restaurants and petrochemicals. It is found that 100 US-based multinationals have projects in China. The cumulative US investment in China has crossed $54 billion. The total trade between the Chinese and US economy was $33 billion in 1992, which increased to over $285.3 billion in 2005. Presently, the United States is China's second largest partner in trade. US imports from China grew 18% in 2005, bringing the US trade deficit with China to more than $200 billion. China is now the United States' largest creditor nation, holding foreign reserves of more than $2 trillion, about two-thirds of which are assets that are denominated in US dollars.

Now Obama appears keen to put past US-Chinese disagreements behind him as he seeks Chinese cooperation on a host of issues from global economy and climate change to nuclear proliferation. He's also looking to China for leadership on how to deal with repressive regimes such as Myanmar and Sudan, both of which are friends of Beijing. Critics of the US president say he is downplaying what was once a central tenet of US foreign policy - the promotion of human rights and democracy - in order to persuade China to help the United States achieve its foreign policy goals. But Obama insists America will never waver in speaking up for the fundamental values that we hold dear. But, in international relations, only interests matter not morality.

The US pursues international relations like a global mafia and it is very easy to change positions and postures for an imperial hegemonic state like the US in the wake of new realities. The emergence of China on the international arena is a reality for the US- hard to accept, but difficult to neglect. It is just a tactic Washington is employing to take China into confidence to forge consensus on vital issues like Iran's nuclear program, fight against terrorism, climate change, Taiwan and Afghanistan, etc. This simply reflects that the seemingly house of harmony is littered with abrasive issues.

Beijing is outright in saying that China's foreign policy is underlined by the principle of non-interference in each other's internal affairs. If it is only up to the United States to discuss human rights issues in China. Critics in the US have accused China of manipulating its currency to keep the cost of Chinese goods artificially low. This is one example of the impact of China's rapidly expanding economic power. By some estimates, China's economy will be the same size as that of the US by 2025, though there will still be a huge gap in economic output per person. American people need to realize that China has applied a very steady hand and very responsible one in dealing with issues involving the dollar.

Beijing has no desire to be an enemy of the United States. Both nations need to give each other due respect and to extend incentives to each other. Then, they can work together towards a better peace and better world, where humankind would live without fear of war, hunger or terrorism.



Hammad Raza is an independent political analyst and is currently working on a book on the history of revolutions. He holds a Masters degree in International Relations from Quaid-e-Azam University, Islamabad.

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