Promote Complementarity
A transparent, safe and fair investment environment will promote China-U.S. investment complementarity. China expects big progress in Bilateral Investment Treaty negotiations with the U.S. The BIT applies to all investments other than those specifically excluded from the negative list. This will, in the short term, affect the interests of certain industries in both countries, and cause problems as regards national security, infrastructure, and technology transfer. The Plan specifically proposes implementation of the management system of pre-establishment national treatment plus negative list. This demonstrates China's resolve to overcome structural and institutional problems and so promote trade fairness and transparency.
The U.S.-China Business Council has predicted that if the BIT can be achieved during Obama's term of office, U.S. capital to the tune of US $200 billion is likely to pour into the Chinese market, and also that the scale of investment is likely to reach US $400 billion, taking into account the relevant deals. Meanwhile, China's investment to the U.S. is expected to expand on the current basis of Chinese enterprises covering 44 U.S. states in 2014, and that in 2015 Chinese enterprises invested US $15.7 billion in the U.S.
The market entails not only competition, but also international cooperation. For example, the U.S. has launched "Power Africa," and China the Belt and Road Initiative, with the common aim of developing the third country investment market.
In 2015, GE and Sinomach (China National Machinery Industry Corporation) signed a strategic agreement to collaborate on the Kipeto Wind Power Project to promote clean energy development in Africa. This is of benefit to the third party and also explores more room for investment. The carrying out of similar projects around the globe will both boost and stabilize world economic and social development.
Special Significance of the Belt and Road
The Belt and Road strategy can potentially remedy certain shortcomings in U.S. foreign policy. The Silk Road Economic Belt passes through Central Asia and the Arab regions, and will boost economic development in both. This is in contrast to the U.S., which overthrew Saddam Hussein, but withdrew its troops before the situation in Iraq became stable, so plunging Iraq into turmoil and bringing about the rise of ISIS.
Professor John J. Mearsheimer of the University of Chicago believes that U.S. actions have nurtured a hotbed of terrorism, and that it should take the bulk of responsibility for the chaos in Iraq. The foundation of terrorism would be substantially weakened if the Belt and Road Initiative were to play a substantive role in those regions. Similar opinions are expressed in Rome and China: A Study of Correlations in Historical Events by American historian Frederick John Teggart. It holds that communication and exchanges between the East and West are conducive to peace in Western Asia and most of Europe.
Relationships between big countries involve cooperation, competition, and collaboration, but mutual trust remains the key. Such trust, however, is built on the basis of deepening exchanges and communications rather than on treaties of alliance and constraint. A simple example of what constitutes trust is: if you believe someone to be a bad guy, you see his actions as hostile. If, on the other hand, you think he is a good and trustworthy guy, the two of you can negotiate even if you have disagreements.
The Plan indeed states that, under the principle of amity, sincerity, mutual benefit, and inclusiveness, and the principle of wide consultation, joint contribution and shared benefits, China will perfect the bilateral and multilateral cooperation mechanism. The country will implement market-based operations wherein enterprises play a major role, and promote win-win pragmatic cooperation with relevant countries and regions in multi-fields. It will moreover develop a new comprehensive model of internal and external land-sea interconnectivity and eastward and westward two-way opening up. The measures discussed above lay a solid foundation on which to enhance mutual trust between China and the U.S.
YANG HUI is an Associate Professor with the Department of Diplomacy of China Foreign Affairs University.
(Source: chinatoday.com.cn)