Positive dialogue and interaction is seen as necessary between the US and China on finance, trade and economics, instead of resorting to tariffs, said one observer.
“Such dialogue leads to positive trade interactions. It increases the potential for foreign-owned businesses in both nations. It carries with it the potential for good jobs for thousands of people,” Anthony Moretti, department head and an associate professor of the Communication and Organizational Leadership Department at Robert Morris University in Pennsylvania, said to China Daily.
Moretti referred to the US-China dialogue of the Financial Working Group (FWG) held in Shanghai Aug 15-16.
“There exist two parallel tracks when you think of the US and China. The political track is filled with all kinds of negativity from the US,” he said. “Whether it be tariffs, other forms of sanctions, dubious legislative items, or the daily negative rhetoric, not much in the way of positive news comes out of that,” Moretti said.
“But the business community understands how essential it is for the US and China to find ways to keep as many doors open as possible and to ensure that optimistic dialogue exists,” he said.
“Together, we account for some 40 percent of global banking assets, and we are the home authority to 12 of the world’s 30 global systemically important banks,” Nicholas Tabor, assistant secretary for international financial markets at the US Department of the Treasury, said in a speech in June.
“The domestic financial stability of the US and China has significant implications for global financial stability, and our policies have an outsized effect on how financial risks evolve globally,” he said.
“Working directly with our Chinese counterparts can help advance many of Treasury’s priorities, including our financial stability objective, our climate goals, and the effectiveness of our global efforts to combat money laundering and illicit finance,” Tabor said.
He said the process of establishing channels of communication has progressed, but “much remains to be done”.
Moretti said that green technology is good for China, the US and the world, so it is meaningful to make efforts to “assist companies — large or small, new or enjoying a long history — that create products that are cost-effective and good for the environment”.
“No matter how much the politicians criticize China, they know that cooperation in areas such as pandemic research, overcoming food insecurity, and creating good-for-the-climate products brings positive results when China and the US are working together,” he said.
US President Joe Biden has touted green initiatives but also announced new tariffs on Chinese imports, including on products such as electric vehicles, lithium-ion batteries, amid US officials’ accusations about Chinese manufacturing “overcapacity” and their concerns about “national security”.
“If you say you believe in something, then demonstrate a real commitment to it,” Moretti said, adding that the tariffs imposed by the Biden administration on Chinese EVs “make no sense”.
“Washington wants a healthier climate, and yet it is deliberately blocking cars that are affordable, of good quality, and good for the globe from US consumers. It defies common sense to preach a message of being climate-friendly and then slam the door on one such opportunity,” he said.
“The West is ready to criticize whatever it is that China does,” he said.
“If the US showed a commitment to long-term strategic thinking, as China has when it comes to the most modern technologies, then it would enjoy strong market share for such products,” he said. “They did not. So the criticism of China for doing so is weak.”
Moretti said hat more governors and mayors are leading business delegations to China.
“Those local and state leaders understand that American jobs created by Chinese-based companies are as good as those from US-based companies. That is another example of win-win cooperation. We need to see more of that.”
