International Sharp Review | The World is Watching How the US Implements "Non decoupling from China"

US Commerce Secretary Raymond concluded his four-day trip to China on the 30th. This is the fourth American politician to visit China since June this year. When evaluating Raymond's trip, international public opinion has paid attention to the announcement by China and the United States to "establish new communication channels", believing that this will help "reduce misunderstandings". Raymond also made it clear that he does not seek to decouple from China and expressed hope that American companies will invest in China. Experts interviewed by International Sharp Review pointed out that "new communication channels" can help further communication and exchange between China and the United States, but to truly play a role, it still depends on the actual actions of the United States.

Looking back at the performance of the US side after the previous visits of three US politicians to China, it is not surprising that public opinion has such doubts. For example, when US Secretary of State Antony Blinken visited China in June, he made it clear that the US side was committed to returning to the agenda set by the two heads of state at the Bali meeting and abiding by President Biden's "four no no no no no no no no no no no no no" commitment.These actions have raised great doubts about the credibility of the US side. Therefore, further observation is needed to determine to what extent Raymond's statement can be integrated with his words and actions.

People hope that the United States will implement its statement of "not decoupling", which is not only determined by the essence of Sino US trade relations, but also the practical needs of the Sino US business community, and is beneficial to the development of the Sino US economy and the world economy. So, what should the US do to implement the statement of "not decoupling"?

In basic understanding, in order for Washington to make the right decisions, it should recognize that the essence of China US economic and trade relations is mutual benefit and win-win, and there is no one who suffers losses and takes advantage.

Since 2018, the United States has continuously imposed high tariffs on Chinese goods, but in 2022, the trade volume between China and the United States reached nearly 760 billion US dollars, setting a new historical high. The 2023 US Export Report to China released by the US China Trade Commission shows that US exports to China have created over 1 million jobs for the US. More than 70000 American companies are investing and operating in China, with nearly 90% of their business achieving profitability in China. CNN reported that American companies have established a huge manufacturing network in China and are highly dependent on Chinese consumers.

This is a reflection of the deep integration of industries between China and the United States, as well as the mutual benefit in economy and trade, and it is also the direct reason why the US business community does not agree with decoupling from China. According to American media reports, Raymond had talks with nearly 150 business leaders before his visit to China, all of whom were eager for more communication between China and the United States. The survey results of the American Chamber of Commerce in China show that 66% of American companies in China will maintain or increase their investment in China in the next two years. The voice of the American business community, American decision-makers should listen carefully.

From an operational perspective, it is urgent for the US to stop politicizing and securitizing economic and trade issues. Now, the United States is facing inflation, the US debt crisis, and so on. Former Chairman of the White House Committee of Economic Advisors, Kevin Hasset, recently stated that the US economy may be hit by another wave of inflation. At the same time, the newly issued treasury bond of the United States also need buyers. Solving these problems cannot be achieved without cooperation with China.

International public opinion has noticed that in the days leading up to Raymond's visit to China, there were "some positive signs" in China US relations. The Financial Times website reported that this includes Washington's efforts to extend the decades long China US Science and Technology Cooperation Agreement, as well as lifting export restrictions on 27 Chinese entities. But the international community has also expressed concerns about the possibility of the United States implementing anti China policies for the election.

During Raymond's visit to China, China expressed serious concerns about the US 301 tariff, semiconductor policy, two-way investment restrictions, discriminatory subsidies, and sanctions against Chinese companies. What the United States should do now is to lift the tariffs imposed on China as soon as possible, relax export controls on China, lift sanctions on Chinese enterprises, and create conditions for expanding trade and investment cooperation between the two countries.

This includes making good use of the "new communication channels" established this time. The US should truly value the role of this channel, rather than treating it as a mere decoration that only serves a symbolic purpose. Both the working groups established by China and the United States, as well as the export control information exchange mechanism initiated, should truly play a role in resolving differences and promoting policy coordination through dialogue. This is also what the international community hopes to see.

Economic and trade relations are the cornerstone of China US relations. I hope to take the establishment of "new communication channels" as a new starting point, and the United States will show sincerity in solving problems, work towards China, promote the "stabilization and improvement" of China US relations, and promote the recovery of the world economy. After Raymond's visit to China, the whole world is watching what the US will do next.