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14 March 2022 | Monday | China Reader Evening Brief | Vol.1, No. 139

50 years after the Shanghai Communique: Why aren't US-China relations normal?

50 years after the official normalization of relations between the US and China, the countries find each other at the highest peak of tensions. Potential conflict or cooperation will define the decade.

IN FOCUS
By Dincy Adlakha

50 years after the Shanghai Communique: Why aren't US-China relations normal?


On 28 February, the Shanghai Communique marked 50 years. However, 50 years after the document, the nature of US-China relations is yet to make space as “normal” bilateral ties.
 
What did the Communique say?
The Communique, signed by then-President Richard Nixon, was the formal recognition of the People’s Republic of China as one-China. It declared that there is only one legal government of China. The same was agreed through a string of highlights.

  1. The US recognizes Taiwan as a province of PRC and that there is only but one China.
  2. The question regarding the Republic of China’s (Taiwan) independence is the biggest obstacle in the normalization of US-PRC relations. It is an internal matter of China that is up for peaceful internal resolution.
  3. The US will withdraw all US forces and military installations from and near Taiwan. Both countries seek to reduce military tensions in the region.
  4. The efforts towards normalized relations between the US and China will benefit the whole world. Neither country will aim to seek hegemony in Asia-Pacific and will also oppose any other country or bloc doing so.
  5. Both countries will facilitate the progressive development of trade and exchange of technology, culture, sports and journalism despite having essential differences in their social systems.

Post Shanghai Communique: Five decades of zig-zag movement
During the last five decades, China-US relations witnessed a zig-zag movement.

First, the administration of Ronal Reagan during 1980-88 provided extraordinary support to Taiwan This support made China uneasy as the Shanghai Communique agreed on a “peaceful resolution” of the issue and recognized the Chinese mainland as the one true China. However, the situation was handled tactfully through diplomatic visits by George W Bush and Henry Kissinger. Nonetheless, the Third Taiwan Strait Crisis did happen in 1995-96; it did not last.
 
Second, the repression of Tiananmen Square protests shocked not only the US but the entire world. It was a clear and strict violation of the values that the US holds close. However, this incident was erased from the global importance of the era and the ties between the US and China did not waiver due to President Bush’s advances towards President Deng Xiaoping. The contributions of President Bush become extremely significant. His friendly advances as “the bicycling ambassador” or “old friend” of Beijing carried US-China through many tough times.
 
Third, the difficulties in China’s accession to WTO are still evident in its gradually opening economy. This was overlapping with the US declaration of the Global War on Terror. US and China have converged these sims to suit their countries as well. China’s accession to WTO helped the US in exchanging with the humongous Chinese market. While, the Global War on Terror provided China with a platform to present its fight against extremism, separatism and religious fundamentalism. Despite different priorities and methods, the ties sustained another challenging era.

Many would argue that the carrot behind all such cooperation is economic interests that the countries drive for each other. This has changed in the 50 years as currently; the economy becomes a major bone of contention for the two.
 
In the 2020s: Four issues that drive US-China relations
The equation between US and China has always been stressful. However, they are navigating through the highest tensed era currently.
First, China has climbed to the top and is currently the second-largest economy in the world. China’s GDP is fast-growing, expanding by 3 per cent in dollar terms in 2020 alone. However, it faces problems in sustaining this growth due to a reduced workforce. It is the largest trading partner of multiple countries and has a trade surplus with many countries, especially from Africa.
 
Even though the US has not used a similar strategy by diversifying its trade relations with newer countries, it has established long and strong ties with major players. The top ten trading partners of the US include China, Canada, Taiwan, South Korea, India and other economic hotspots.
 
China’s expanding economy is perceived as a threat by the US to its position as a superpower. The competition was increased during the Trump administration as the countries fought an economic trade war. They are currently reeling from and trying to overcome the damages during the time.
 
Second, the increased regional power gives rise to old aspirations for China. Its unprecedented pressure on Taiwan for unification is concerning to the US. Incidentally, China has broken records after records by sending PLA incursion flights to the Taiwanese Air Defence identification Zone in 2021. Daily incursions, the highest being 56 planes in October 2021 have become a common sight. Multiple Chinese leaders, including President and Chairman Xi Jinping, have released statements assuring reunification with Taiwan.
 
Chinese military and political pressure on Taiwan is countered through diplomatic and economic support by the US. The US support is extremely crucial for Taiwan as strong leaders and delegations from Australia, Japan and Europe, including former Prime Minister Tony Abbott, have shown solidarity with Tsai Ing-wen by visiting Taiwan during the tumultuous time.
 
The direction of the current tensions is yet to be seen, but experts foresee a military conflict. Even though the current Russia-Ukraine conflict has given lessons to China, resolve for reunification remains high.
 
Third, the competition for supremacy in various fields is evident. China and the US are currently stuck in a series of competitions. They compete in a race for better technologies, race in outer space, race for economy, race for narrative and the like. China launched three major space projects in 2021 including the Chinese international space station, the Mars explorer and the taikonauts’ stay in space. While the US refines its procurement strategy for rare earth and boasts superior technology. The US is also observant of China’s growing defence expenditure. Despite being a trained and strong maritime power, China’s entry into the South China Sea as a maritime bully is not well taken by the US.
 
The pandemic has laid bare the faults in their economic systems being too dependent upon each other. Lockdowns in China raise discussions of increasing supply chain resilience in the US. This has multiplied the inherent competitiveness to succeed the other. China is, thus, a likely competitor for the US rather than a strategic partner.
 
Fourth, the completion and tension are manifested through other means. Both countries have accused each other. The US finds China guilty of human rights abuses and has sanctioned sections of trade with China to oppose the same. While China protests against the hegemonic and exploitative behaviour of the US. Such accusations mark unease in their relations.
 
Hence, fifty years on from the Shanghai Communique, US and China are yet to find their footing as “normal” relations.

References:
Laura Portbury, “50th anniversary of normalization of US-China relations,” Foreign Brief, 28 February 2022
Chu Daye and Xie Jun, “Decoupling 'unrealistic' for China and US, 50 years after Nixon's historic visit,” Global Times, 28 February 2022
Nixon-Mao meeting: four lessons from 50 years of US-China relations,” The Conversation, 21 February 2022
Chronology of U.S.-China Relations, 1784-2000,” Office of the Historian, US Department of State, n.d.

IN BRIEF
By Keerthana Nambiar and Avishka Ashok

INTERNAL
COVID-19: China locks down Shenshen city due to COVID outbreak
On 14 March, Chinese state authorities shut down the city of Shenzhen due to the worst ever COVID outbreak in the city. The cases tripled within a day from 12 March to 13 March. The lockdown covers all business firms in the finance and technology sector as the city borders Hong Kong, the financial hub of the world. People are urged to work from home as much as possible and merely essential services including food, utilities and other necessities are open. The city has also closed borders, restricting entry exit of people. The authorities stated that the restrictions will stay in place till 20 March. (Helen Davidson, “China shuts down city of 17.5m people in bid to halt Covid outbreak,” The Guardian, 14 March 2022)

COVID-19: Covid testing kits flood Chinese pharmacies
On 13 March, Global Times reported that many Chinese pharmacies have stocked up on COVID testing kits or antigen detection products as the cases surge to an all-time high in China. The state’s drug authorities cleared these products for sale on 11 March which led to multiple producers and manufacturers like Wondgo Biotech Co producing them in great quantities and opening the kits for sale and distribution. The products are rated at around USD 94 for 20 kits. There is no restriction on the purchase of these kits. The National Health Commission encouraged the use of these kits by the general public to monitor the virus. (Chu Daye and Qi Xijia, “Pharmacies prepare stocks as virus antigen detection products cleared for sale,” Global Times, 13 March 2022)

INTERNATIONAL
China-Laos railway: Network completed 100 days of service
On 13 March, Global Times reported that the China-Laos Railway network completed 100 days of operation on 12 March. The link carried more than 1.2 million tons of goods which boosted the economic and trade cooperation between China and Laos, and by extension, ASEAN. More than 360 cross-border cargo trains exchanged goods with the ten ASEAN members. Additionally, more than 120,000 tons of goods have been imported by China through the railways. The train goes through Beijing, Shandong, Zhejiang and Jiangsu in China. The 1035 kilometre line connects China to the Laos capital Vientiane. (“China-Laos Railway marks 100 days of service, invigorating trade with ASEAN,” Global Times, 13 March 2022)

Pakistan: Ambassador to China appreciates BRI and CPEC 
On 13 March, Xinhua Net published an article highlighting the major themes discussed by the Pakistani Ambassador to China Moin ul Haque during an interview with the news agency. The Ambassador claimed that the cooperation with China had resulted in transformation of Pakistan’s economic landscape. He complimented the Belt and Road Initiative and appreciated the transformation brought into the country through the project. Haque also credited the eco-friendly metro line in Lahore city to the China-Pakistan Economic Corridor. He said: “So far, more than 70,000 jobs have been created thanks to BRI cooperation. All these philosophies and dimensions of BRI directly contribute to the 17 SDGs (Sustainable Development Goals).” (“Interview: BRI cooperation with China "transformational" for Pakistan -- ambassador,” Xinhua Net, 13 March 2022)

North Korea: The US calls on China to condemn the latest missile tests 
On 13 March, the US Department of State revealed that the special envoy to North Korea Sung Kim held a phone call with the Chinese diplomat Liu Xiaoming and put forth his agenda of jointly censuring North Korea for its recent missile launches. According to the department of state, the two officials held the phone on the same day as the publishing of the US report which announced North Korea’s latest ICBM test. The US clarified its concerns regarding the unlawful advancement of weapons of mass destruction by North Korea. He also called China an important ally in maintaining the regional stability and urged China to public condemn the tests. (“US calls on China to rap N. Korea over provocative missile tests,” The Mainichi, 14 March 2022)

Asia and Oceania: Report claims that the region imports more weapons due to Chinese aggression
On 14 March, Stockholm International Peace Research Institute published a report according to which Asian and Oceanian countries were increasing their stock of weapons in response to China’s growing regional aggression. The report arrived at these conclusions by analyzing the worldwide purchase of weapons. The weapons concluded that the top six importers of arms and ammunition were from the Asian and Oceanian region. It recorded India as the top importer at 11 per cent of the total imports. The report said: “Tensions between China and many states in Asia and Oceania are the main driver of arms imports in the region.” (“Global arms trade falls slightly, but imports to Europe, East Asia and Oceania rise,” Stockholm International Peace Research Institute, 14 March 2022)

Russia: The US plans to restrict China’s arms sale amid crisis in Ukraine
On 14 March, the Guardian reported that the US will propose China to reject the Russian purchase of Chinese weaponry while tensions remain high in Easter Europe. The US National Security Advisor Jake Sullivan is expected to meet the Chinese Director of the General Office of the Centra Foreign Affairs Commission Yang Jiechi in Rome after Russia reportedly appealed for a purchase of Chinese arms and ammunition. Sullivan also plans to notify its repeated warnings of a Russian attack which was ignored by the Chinese side prior to the increased tensions in the region. He addressed the CNN and said: “We also are watching closely to see the extent to which China actually does provide any form of support – material support or economic support – to Russia. It is a concern of ours. And we have communicated to Beijing that we will not stand by and allow any country to compensate Russia for its losses from the economic sanctions.” (“US will try to convince China not to supply arms to Russia at key Rome meeting,” The Guardian, 14 March 2022)

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