China News Agency, Washington, March 26th: How can the US-China economy and trade "relink"?

　　——Interview with Craig Allen, President of the US-China Business Council

　　China News Agency reporter Chen Mengtong

　　From disputes and frictions, multiple rounds of negotiations, to the signing of the "Phase One Economic and Trade Agreement", China-US economic and trade relations have experienced many challenges and uncertainties since 2018.

With the change of the U.S. government, new expressions of U.S. trade policy toward China have emerged, but the specific policy details are still unclear.

　　How should the US-China economic and trade relations be "relinked"?

Craig Allen, President of the US-China Business Council, recently accepted an exclusive interview with China News Agency's "East-West Question", expressing his "detailed eagerness" for the development of US-China economic and trade relations, as well as his expectations for the relationship between the two countries. Develop the expectation of "long-term cooperation".

　　Founded in 1973, the US-China Business Council has about 260 US member companies that have economic and trade relations with China.

Allen assumed the chairmanship of the US-China Business Council in July 2018.

He is a senior diplomat who has been dispatched to China three times and has served as senior commercial officer at the U.S. embassy in China and deputy assistant secretary for China affairs at the U.S. Department of Commerce.

　　The following is a summary of the interview transcript:

　　China News Agency reporter: In our interview in August 2019, you used to describe the Sino-US economic and trade relations at that time as "the wind was coming and it was blowing very hard".

Two years later, how do you feel about the current Sino-US economic and trade relations?

　　Craig Allen: I think there are two ways to answer this question.

If you look at the data, it's pretty good.

For example, in 2020, U.S. exports to China increased by 17%, and last year by 11%.

In addition to this, U.S.-China bilateral investment has slowed, but continues to flow in both directions across the Pacific.

Just looking at the data, the relationship is at a pretty good level.

　　But I think the reality is much more complicated.

The political climate between the U.S. and China remains icy, with disagreements creating uncertainty and a lack of trust, and the complexity of the bilateral relationship is increasing.

That puts pressure on investors in both the U.S. and China.

I worry that without adequate discussion and communication between the two governments, the differences between the two sides will be bigger, not smaller.

In November 2021, the fourth CIIE will be held in Shanghai.

Texas Instruments displayed its chip products with the theme of "Chip to China, Science and Technology to the World".

Photo by China News Agency reporter Zhang Hengwei

　　China News Service: The Biden administration has been in office for more than a year. How do you assess its trade policy towards China so far?

　　Craig Allen: U.S. trade policy toward China is part of its global trade policy.

From a global trade policy perspective, I don't think the USTR has clearly laid out an overall coherent strategy in this regard.

So far, the U.S. has made some progress in resolving trade disputes with the EU, and has also proposed an Indo-Pacific economic strategy, but there are no policy details, and we are still waiting.

　　As for trade policy with China, Biden said a lot during his presidential campaign about the negative impact of tariffs on American workers and American families.

There appear to be no bilateral talks to cut or remove tariffs, or resolve other outstanding market access issues.

Although the US government says it is looking for new tools to fix it, I don't know what it is, which makes me very uncertain about the future.

　　I think that's the uncomfortable, uncertain position we're in today, made worse by Covid-19 and the situation in Ukraine, and we're all waiting to see what's going to happen next, while trying to help member businesses deal with this. a huge uncertainty.

　　China News Service: When US Trade Representative Dai Qi delivered a speech on China's trade policy in October last year, he used the expression of "re-linking" US-China economic and trade relations. What kind of signal does this reveal?

　　Craig Allen: She's only mentioned this once about that statement.

Since then, I have not seen any further action or recommendation from the US government on this.

But I would like to say that we have seen positive signs between the US and China in agriculture and addressing climate change: US agricultural exports to China will increase by 35% in 2021; there are many US-China cooperation activities on climate change and epidemic control; many US energy The company and Chinese partners actively participate in energy conservation and emission reduction actions.

I will not say that there are no problems in the economic and trade relations between the two sides, but there are good opportunities for cooperation, which should be considered by both sides.

Another promising area is public health and life sciences.

U.S. farmers involved in exporting to China.

Photo by China News Agency reporter Liao Pan

　　China News Service: Since Qin Gang, the Chinese ambassador to the United States, took office last year, you have met with him many times.

How do you feel about China's economic and trade policy toward the US?

　　Craig Allen: Also speaking from the global trade level, I think China's economic and trade negotiations are very busy and very successful, which is very noteworthy.

I applaud China's accession to the Regional Comprehensive Economic Partnership (RCEP) and its formal application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

This is a positive sign.

　　As for U.S.-China bilateral economic and trade policy, I think we're seeing very similar things in Beijing and Washington: both sides want to reduce any reliance on the other, especially in terms of strategic supplies or supplies that may be of strategic importance.

　　China News Service: There is a view that China-US economic and trade relations are so closely linked in various fields that such discourses as "decoupling" or "re-linking" are actually not helpful for dialogue between the two sides.

　　Craig Allen: I agree.

When you talk about so-called "decoupling", you are looking at a small part of the overall economic and trade relationship.

The "decoupling" of the US and China in agriculture, energy and other fields is really impossible, but in the field of science and technology, it is another problem.

I think in the tech space, both governments are taking action to make it difficult for companies in the other country to do business freely within their borders.

　　China News Agency reporter: If China-US economic and trade relations are to seek "re-linkage", which areas should we start from?

　　Craig Allen: We do need confidence-building measures.

For example, lowering tariffs, especially in the current period of inflation, would be very smart.

But I think both the U.S. and Chinese governments have national security concerns, and we should accept that.

That being the case, define national security issues, circle the scoping list, and allow other areas to enforce WTO rules.

　　Behind the exaggerated concerns about national security is often the purpose of trade protectionism.

The United States and China will pay a huge economic price for it, and it is the people of the two countries who will bear the price.

In 2018, the "Tariffs Hurt America's Heartland" organization held a rally in Wisconsin, USA, with more than 100 local businessmen and ordinary people participating.

Photo by China News Agency reporter Diao Haiyang

　　China News Service: Some mainstream US media comments pointed out that the "trade war" is a "costly lesson" for the United States, and increasing tariffs is not the answer to the US-China economic and trade relationship.

How do you think China and the US should cooperate to promote their respective economic and business development?

　　Craig Allen: At this stage, I see a trend toward secular tariffs, which is very dangerous because it will distort the U.S.-China economic relationship.

It would be a very good thing if the two sides could negotiate on the mutual removal of tariffs.

The U.S.-China bilateral relationship is really difficult right now, and tariffs are one of the sticking points and part of the reason for the difficulty.

　　China News Service reporter: What kind of political statements from China and the US will help the two sides meet each other halfway?

　　Craig Allen: It would be great if the leaders of the two countries could reach a consensus on overcoming the U.S.-China economic differences, removing tariffs on each other, and restoring bilateral trade relations.

It is very difficult to have such a dialogue at the moment.

But we should keep in mind the fact that the United States and China must coexist for a long time.

I think all Chinese and all Americans would love a partnership.

We should think about the ultimate goal of cooperation and how to achieve it.

An automated inspection line of an enterprise in Zhejiang.

Locally, guaranteeing orders and guaranteeing shares is the top priority in work.

Photo by China News Agency reporter Wang Gang

　　China News Service: On March 18, the leaders of China and the United States held another video call after more than 4 months. How do you comment on the latest contact between China and the United States?

　　Craig Allen: Clear and direct communication between the U.S. and Chinese governments is critical to the responsible management of the world's most important bilateral relationship.

President Xi Jinping and President Biden have personally played a leading role and set a good example, which is very good.

We hope that officials from both countries at all levels will also simultaneously strengthen constructive dialogue to manage competition and cooperate on many other pressing and unresolved issues.

(over)

Interviewee Profile:

Craig Allen, president of the US-China Business Council.

Photo by China News Agency reporter Chen Mengtong

　　Craig Allen has served as President of the US-China Business Council since July 2018.

He has nearly 30 years of working experience in Asia, and has served as the US ambassador to Brunei and the deputy assistant secretary for China affairs of the US Department of Commerce.

　　Allen joined the U.S. Department of Commerce in 1985, where he served as an international economist for China studies.

From 1992 to 1995, he was the Commercial Attache of the U.S. Embassy in China.

From 2002 to 2006, he served as a senior commercial officer at the U.S. Embassy in China.