During Chinese President Hu Jintao's recent visit to the United States, President Barak Obama emphasized that the U.S. has no desire to "contain China's rise," and pledged to "build a cooperative partnership" between the two countries. But four days later, in his State of the Union address, he cited "China" four times as a key competitor of the U.S. in education, innovation, new energy, and infrastructure.
It is crucial to clarify what is meant by "competition" and "cooperation." Doing so will help develop a more candid and more constructive China-U.S. relationship, and define a model for pragmatic and collaborative relationships between rising powers and status quo powers the world over. And this is exactly what the participants of the World Economic Forum annual meeting in Davos were aiming for this year.
So long as we ditch the zero-sum mentality, competition does not necessarily imply containment. Only if one party believes that "your gain is my loss" and "your success is my failure," will it work to stop others from gaining and winning. This would trigger counter-moves, poison mutual trust and hinder cooperation. But if both parties see the development of others as a spur to improve their own capabilities and match the other, we will see healthy, win-win competition. China and the U.S., and indeed all developing and developed countries, should avoid the first scenario and aim for the second.
Competition in the era of globalization is completely different from that during the Cold War. China and the U.S. share many common interests and both have a stake in peace and prosperity in the 21st century. It is understandable that President Obama wants to remobilize the American people in research and education by recalling past innovations. But by referring to "our generation's Sputnik moment" he aroused uncomfortable feelings among some Chinese people who worry that the U.S. sees China as a replacement for the former Soviets in a Cold-War-style competition. Nevertheless, those who are worried should bear in mind that Obama cites India and South Korea as often as China among potential competitors.
Healthy competition requires mutual respect, mutual trust, and fair play under agreed rules. President Obama's address showed the respect that the American people have for China's rapid growth of China, while the Davos meeting provides an opportunity to adjust international rules to reflect the shift in power from developed powers like the U.S., to rising powers like China. However, both sides will have to work hard to reduce mutual misunderstanding and increase mutual trust. China should strengthen protection of intellectual property rights and increase the flexibility of the RMB exchange rate, while the U.S. should create a friendlier environment for Chinese investment and maintain monetary stability. Otherwise, mutual trust will decline and the negative aspects of competition will come to the fore.
If competition stays on the right track, China can be a strong collaborator of the U.S. in the areas identified by President Obama as crucial for the reinvention and development of the American economy. In education, China and the U.S. could examine each others' best practices and lay the foundation for cooperation between future generations. China can learn how to improve independent thinking, basic skills, and creativity. The U.S. can learn how to maintain diligence and discipline, excel in exams, and master basic knowledge. In the field of innovation, China and the U.S. could establish joint research programs to address challenges such as climate change, energy security, environmental protection, food security, disease control, and space exploration. In infrastructure and employment, China could direct investment into the American market, not only through big state-owned firms, but also by encouraging investment by small and medium businesses. The U.S. could secure jobs at home by increasing exports of agricultural products, technology, and services.
In his State of the Union address, Obama had his eye on the 2012 U.S. presidential election campaign and the key themes that will be emphasized by the two main parties - "jobs" by the Democratic Party and "cutting the deficit" by the Republicans. Obama cited a recent agreement between China and the U.S. which "will support more than 250,000 jobs here in the United States," contradicting conventional political rhetoric about China stealing American jobs. Even the Republicans should recognize that Chinese investment would both promote the free market and reduce pressure on U.S. government budgets. The recent World Economic Forum meeting in Davos emphasized both the importance of Chinese investment for the revival of the global economy, and the challenges facing the international community in dealing with China as a growing economic force. It seems that competing and cooperating, but not containing China, is becoming the consensus approach, not only in the U.S. but also around the world.
Qinghong Wang is an Adjunct Fellow of the Pacific Forum of the Center for Strategic and International Studies (CSIS).
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