Sino-American ties plunged to historic lows under the administration of President Donald Trump, with the two clashing over trade, tech and Beijing’s increasing assertiveness in the South and East China seas and over self-ruled Taiwan. The new US administration is aiming to create “a new type of relationship with China that is closer to the demands of the 21st century.”
In spite of the Huawei incident, it is quite unlikely that China will go after every foreign firm. There is no incident reported that suggests even a single US or European company has been told to close down their operations from China. The former US President Donald Trump wanted to lower the trade deficit by imposing tariffs, making Chinese imports expensive.
But the change in the presidency and the arrival of Biden as the US president are indicating a strong bilateral tie. Biden said partnering with other democracies on China would “more than double” the US economic leverage over the country.
On any issue that matters to the US-China relationship, Biden said, “We are stronger and more effective when we are flanked by nations that share our vision for the future of our world.”
“Biden’s policies will be about returning to multilateralism, returning to international organizations, and returning to the status of fighting without splitting,” Chen Wenling, chief economist at the China Centre for International Economic Exchange.
Chinese Foreign Minister Wang Yi has previously suggested Beijing would be open to restarting its relationship with the US following November’s election, declaring the two countries to be at a “critical historical juncture” after a year of escalating tensions.
The way to maintain an equilibrium in relations, both seem to agree, is to balance competition and cooperation. According to Bloomberg Opinion- “to have any chance of managing such frictions, the U.S. and China first need to set the boundaries of their competition and build realistic expectations for cooperation. That’ll require both Biden and Xi to take some political risks.”
“China-US relations have come to a new crossroads, and a new window of hope is opening,” said Wang, who is also a State Councilor, told the state-run Xinhua news agency in an interview.