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Fading America Must Face China Rising on its Own Terms

Posted: 2/16/10

LONDON -- The spats between the United States and China appear to be getting more numerous and more serious. The Chinese objected in strong terms to the U.S.'s latest arms deal with Taiwan and threatened to take sanctions against those firms involved. President Obama recently accused the Chinese of currency manipulation. At Davos, Larry Summers, the director of the White House's National Economic Council, made an oblique attack on China by referring to mercantilist policies.

The disagreement between China and the U.S. at December's Copenhagen climate summit has continued to reverberate. The Chinese government reacted strongly to Google's claims -- supported by the U.S. administration -- that cyberattacks against it had originated in China and its statement that it would no longer cooperate with government censorship of the Internet. The U.S. has been increasingly critical of China's unwillingness to agree to sanctions against Iran. And finally the Chinese government is accusing the U.S. administration of interference in its internal affairs by insisting on the meeting this week between Barack Obama and the Dalai Lama in Washington.

The issues of contention have come thick and fast. For the most part, however, they are hardly new. The Chinese reaction to the Taiwan arms deal was entirely predictable, the only novelty being the threatened sanctions. Taiwan remains the most important priority for Chinese foreign policy. Their response to the Dalai Lama in Washington is equally predictable.

Obama's and Summers' statements about currency manipulation and mercantilism respectively are a little different. True, they are not entirely new; Treasury Secretary Timothy Geithner accused the Chinese of currency manipulation in January 2009. But since Geithner's ill-judged remark, the U.S. administration has until now chosen to be more discreet.

Google and climate change are relatively new bones of contention. But we should not be surprised by these disputes. China's rise means that it is now involved in areas of the world and on issues where previously it had little or no stake. As China increasingly becomes a global power with interests to promote and defend around the world, it is bound to come into conflict with the United States on a growing number of subjects.

It would appear that the Sino-U.S. relationship is entering a markedly different phase. The key question is whether this will lead to growing acrimony between the two countries to the point where the bilateral relationship between them is seriously harmed or whether the generally positive relations of the last three decades can be continued.

There is a further underlying change in their relationship, namely China's rise and the U.S.'s decline. While neither is new, the latter has only begun to be recognized since the global financial crisis. The expressions of the shift in power between the two are numerous. China has become more self-confident and, in a mild way, more assertive.

This has been most evident in the way in which China has -- understandably -- expressed concern about the value of the dollar, raised the question of a new special-drawing-rights-based reserve currency, and blamed the global financial crisis on the behavior of Western, especially U.S., banks; though it can also be seen in a more general, though subtle, shift in Chinese attitudes.

It would be quite wrong, however, to conclude that there has been a major change in the Chinese approach toward the United States. On the contrary, the fundamental Chinese priorities remain as they were defined by Deng Xiaoping. The overwhelming priority is economic growth and lifting tens of millions out of poverty, and creating the most favorable external environment for the pursuit of this objective, which has meant, and continues to mean, above all else, a favorable relationship with the United States.

Although the Chinese may play their hand with a little more self-confidence and with a tad more assertiveness, I see no significant evidence that they have abandoned their tried and trusted position. On the contrary, it has worked well for them and continues to do so. Time is on their side, and they can therefore afford to be patient.

But what of the United States? The fact that the U.S. has only just begun to wake up to the fact that it is in decline is a cause for serious concern. It is completely unprepared for what this might mean: that it can no longer deal with others in the way that it has, that it can no longer assume a relationship of superiority in its dealings with China, and that it has to seek a new understanding of China rather than expect the latter to continue to play second fiddle.

This belated awareness of a weakening of the United States has happened too abruptly and too precipitously for its meaning and implications to be properly digested either by policy elites or the American public. Indeed, most are still in denial of the fact. A classic illustration was the widely expressed anger and frustration in media and political circles against President Obama's relatively contrite attitude toward the Chinese during his November visit to China. In fact, Obama was right on two counts: Firstly, the U.S. now has to learn to deal with China on equal terms and, secondly, it must be mindful of China's role as its creditor.

Put simply: The major concern is not China getting too big for its boots -- at least in the short term -- but a growing sense of American frustration that its boots are no longer as big as they were or should be, together with an unwillingness or stubborn refusal to understand China on anything other than American terms.

The consequences could be very serious. Relations between the two could steadily deteriorate with negative implications for the rest of the world. This won't do anyone any good. It will make things more difficult for China and might slow its progress, but the United States could suffer even more.

China must not be confused in the American mind with a Soviet Union Mark 2. It is a very different and far more formidable adversary whose ultimate strength is not its military hardware but its economic prowess, and whose diplomatic weapon is not saber rattling but great patience.

Martin Jacques is the author of "When China Rules the World: The End of the Western World and the Birth of a New Global Order."

(c) 2010 GLOBAL VIEWPOINT NETWORK/TRIBUNE MEDIA SERVICES

 
 
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HUFFPOST SUPER USER
Balzac
02:39 PM on 02/17/2010
Fading America? That's absurd. I'm tired of the defeatism. America rules the world. New York City is the greatest city in the world, and Los Angeles must be the next greatest after New York City. So how can we be slipping when we have the two greatest cities in the world? People need to get a grip.
HUFFPOST SUPER USER
Dknight99
05:41 PM on 02/17/2010
I don't think America is fading, but it's no longer in a position where it can dictate what it wants and expect to get it right away anymore. It actually has to negotiate and take the other into considerat­ion.

However just take a look at popular American culture, it does make you wonder though what has America become.
HUFFPOST SUPER USER
Balzac
06:20 PM on 02/17/2010
The USA is due for a cultural Renaissanc­e. America needs to enjoy a lot of power in the world for the sake of geopolitic­al harmony.

But this will only be beneficial if the very wisest and most benevolent Americans also become the most ruthlessly competitiv­e in the USA.

The most qualified man in the USA is now the president. That is remarkable­. So we have achieved success in capturing the highest office for the best possible leader. Now there should be doors opening in the private sector for the those who represent the vanguard of positive social change.

Thus far, the trend of social "liberals" who have shared values and interests leaving each other to twist in the wind has continued unabated. What they say is true - nothing is ever given, it can only be taken.

I have no idea how I'm going to take what I'm entitled to, or who I'm going to take it from, but I'm watching with the eyes of a hungry crocodile for any significan­t morsels. I'm mad as a rattle snake almost all the time. What man wants to be strangled by his own entrails? That's my attitude.
photo
HUFFPOST SUPER USER
deluk
because I'm worth it...
05:44 PM on 02/17/2010
This sentence is correct

"Fading America? That's absurd. I'm tired of the defeatism. America rules the world."

New York City stopped being the greatest city in the world about ten years ago, and Los Angeles would be nowhere near the top ten.
HUFFPOST SUPER USER
Balzac
06:00 PM on 02/17/2010
You can knock America's great cities, but what city is the greatest in your opinion. I have a good laugh waiting for you.
11:31 AM on 02/17/2010
the only reason China is rising is because Goldman Sachs, JPMorgan, and the other too big to fail created a world economic crisis in which they took ALL that money from ALL the world

and Funneled it into the BRIC
Brazil, Russia, India, China

If these Too Big To Fail banks had SOME 'loyalty' to their host nations

NONE of this would be happening
these economic problems
HUFFPOST SUPER USER
Dknight99
05:43 PM on 02/17/2010
And the Chinese people had nothing to do with it? Oh right, they're only capable of cheating. Is it possible that the Chinese public have just outwork others? Just take a look at the Beijing opening ceremony.
photo
HUFFPOST SUPER USER
deluk
because I'm worth it...
03:28 AM on 02/18/2010
More than a billion humans, a command economy that can be turned on and off?

Not that impressive when you consider that even tiny, impoverish­ed North Korea can put on a great show.
01:59 AM on 02/17/2010
In your second to last paragraph, you said, "This won't do anyone any good." I beg to differ. Without a trade policy that can penetrate China's trade barriers, well-found­ed populist anger and mounting unemployme­nt will result in increasing­ly disruptive political turmoil.

China's, most specifical­ly, but ALL nations that practice some form of state capitalism have been at economic war and we're shooting back with wads of paper cleverly disguised as Dollars and T-Bills. China's leadership has NO reason to respect their poorly managed, corrupt, and increasing­ly insolvent neighbor, the United States.

The way globalizat­ion is supposed to work is that our laws and advanced technology know-how attract investment that leads to small businesses and employment­. Thanks in large part to Bush who was completely asleep at the stick, that equation no longer works. All options are truly ugly. Obama cannot even talk about this problem seriously for fear of making visible how complicit both Republican­s and Democrats were in selling out our nation. This has been a long time coming!

At least the concept of a "Purge" was understand in the Middle Ages. The 2010 and 2012 purges should be well remembered for how effective the various lobbyies are at manipulati­ng elections.
01:31 AM on 02/17/2010
I'm going to say three words that will change the entire scope of the game with China:

Inner City Education.

I won't say more than that, because people get so upset about the truth around here.
08:24 PM on 02/16/2010
"This belated awareness of a weakening of the United States has happened too abruptly and too precipitou­sly for its meaning and implicatio­ns to be properly digested either by policy elites or the American public."

Are you sure we have got it?