Speaking at Davos this week, remotely of course, President Xi warned of confrontation, advising cooperation, as the way forward in dealing with China.
Beijing's envoy to Washington has already made it clear, the US and China should work as competitors in commerce, not rivals in geopolitics.
Former Chinese Vice President Zeng Peiyan, has urged Biden to meet halfway to restore trust. "Confrontation between the two global powers is not inevitable. China has no intention of changing the US or replacing it. The US will be unable to change China as it sees fit."
"The two sides should work together to abolish trade tariffs and remove corporate restrictions on companies in the US and China. It is time for cooperation and global leadership on pandemic control and climate change. The drift to a cold war mentality should be avoided. The drift into the Thucydides trap is not inevitable."
The world awaits the change in stance from the Biden administration. The White Houses has announced trade policy with China is one of many items under review. Tariffs on trade have cost American jobs, increased prices and reduced National Income. The mantra should be co-operation and co-opetition to ensure both economies move forward together.
China is now a more important link globally than at the onset of the Trump administration. It was the only major economy to experience growth last year. The IMF is forecasting growth of 8% in the current year. It will overtake the US as the largest economy in the world by the end of the decade. It has already overtaken the US, as the largest destination for foreign direct investment,
Biden's commerce secretary Gina Raimondo has promised a tough line on China. The US is seeking to restore closer links with Japan and South Korea. Uncle Sam continues to flirt with Taiwan. Encirclement in the South China Sea would indeed be a ring of fire for the mainland.
Soft overtures from Beijing coincide with increased military action in the mountain border with India. Simulated attacks by Chinese warships on aircraft carriers and bomber flybys across the straits of Taiwan are staged.
The world awaits the hoped for change in stance from the Biden administration. Restoring military exercises with South Korea is not the ideal response ...
That's all for this week, stay safe, hands, face and space ...
The Saturday Economist
John Ashcroft publishes the Saturday Economist. Join the mailing list for updates on the UK and World Economy.
|The Saturday Economist|
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