Henry Paulson: How to fix our relationship with China

Of course, although the new administration can bring in new policies, competition is at the core of the American relationship with a power with a competitive ideology and very different economic and political systems. But keeping that match healthy is very important, not harmful. The relentless, debilitating competition in which both governments seek to reduce all trade, investment and technological flows will become almost impossible.

We must reject the notion that we will not benefit from economic relations with China. To say this is not patriotic. In fact, our workers and farmers have the potential to benefit greatly from a more balanced relationship with the world’s fastest growing major economy. As two major global economies, the United States and China are finding a way to resume economic growth in the interests of the Americans, the Chinese and the world.

Many believe there will be a military crisis between the United States and China, for good reason. But our military and diplomatic strength is rooted in a strong economy. The path to economic success begins at home. Mr. We need to crush the Biden Govt-19 and adjust our economy to increase economic competitiveness. If we do this, the United States will be a dominant world power no matter what China does.

A good start

While much more needs to be done, China has taken some steps in the right direction. A phase trade agreement reached in early 2020 addressed immediate issues such as intellectual property rights and market opening in some sectors. China has promised to open up additional service sectors and reform state-owned enterprises. Its plan to encourage domestic consumption to revitalize the economy will provide export opportunities for US companies. But implementation is a big test.

This is not the only obstacle to a better relationship. Mr. Pitan also gets into a dangerous world.

Our multifaceted companies, terms and agreements have failed to sustain the rapid pace of change, which threatens global order. This disruption is due to the increasingly dangerous action and rhetorical arts that characterize the US-China relationship.

The Biden administration has a historic need and opportunity to restore global cooperation, but it will be difficult without restoring global order. An important stage in that process is the consolidation of US-China relations. Until the US and China establish where they can cooperate and compete, there will be chaos, which will restrict global economic growth and pose a threat to peace.

We need to rebuild our relations with friendly countries and design the environment to create incentives and incentives for China’s choices and behavior. It is necessary to lay down new global rules for trade, investment, technology, the environment and the digital world. President Biden must join hands with our allies such as Japan, the European Union, the United Kingdom, South Korea and Australia to promote a concerted policy to improve the World Trade Organization and its governing bodies, such as the World Trade Organization.

If these allied economies can agree on a framework and are willing to meet the agreed global standards, they will be in a much stronger position to invite China to join. If Beijing refuses to join us in this new multifaceted effort, we should look at a penal instrument built on target exchange that includes blocking collective access to our markets.

We must also look at the question of bilateral tariffs, which have served as a tax on Americans, simultaneously undermining the competitiveness of the United States by reducing the capacity of our companies to be reliable global suppliers and our country a safe haven for investment.

But the damage is often done. Therefore, the elimination of tariffs must be combined with a new approach – while it separates China’s mutual and tangible benefits, the elimination of existing tariffs is met by the limitations defined in a phase bilateral trade agreement.

A plan for the future

To achieve this, the Biden administration should initiate a comprehensive new round of bilateral talks with China aimed at achieving a fair, broad and mutual trade relationship centered on futures markets. Such an agreement would open up key areas for investment and exports, address market distortions in Chinese state-owned enterprises, and deal with structural and process issues involving both services and goods. We must use regular and unusual methods to force compliance.

In return, the United States must be more predictable and ready to open up our own market for trade and investment from Chinese companies. Of course, investments that threaten our national security should be banned. But we must be careful to avoid deploying technology to the extent that American companies lose the ability to commercialize and use their products in the fastest growing market in the world.

Furthermore, if we want to prevent the effects of bad weather and protect essential and fragile global ecosystems, we need to address its massive environmental problems in China and adopt best practices abroad.

The United States must seize the greatest economic opportunities in China and globally. That is, it ensures opportunities for our businesses to invest in and export clean energy products and technologies and environmental products and services.

While it is necessary to protect national security, it should not undermine US competitiveness in the process. Blindly restricting sales to dual-enterprise Chinese companies, as the current administration proposes, opens the door to U.S. competitors willing to step into a place where US companies are banned from going. Similarly, blocking legitimate Chinese companies from US capital-market lists on the basis of vague national-security makes only London, Hong Kong or Tokyo attractive. Such measures would hurt the credibility, leadership and economic competitiveness of the United States rather than impede China’s progress.

The key is to gain strategic competition with China. Competition should be our goal without unnecessary conflicts – because conflict without efficient competition has brought some bad results to the American people. This has damaged our economy. This has paralyzed our export opportunities. Over time, this will become a threat to world peace, and it will not make us safer. So, if we can’t get this right there will be chaos and conflict.

It does not apply to anyone. Not America. Not China. Not the world. With a clear-sighted but productive US-China economic relationship, structured on the basis of targeted reciprocity, we now need the United States to restore and strengthen its global leadership, build a secure America, and support world peace.

Mr. Paulson Paulson is president of the company and has served as treasury secretary under President George W. Bush. You can access him at [email protected].