There is a Chinese proverb meaning that the “A good beginning, is half success” and will ensure full success. The signing of a deal, a hard-won phased outcome for the Sino-US trade tension, is a positive first step for resolving the economic and trade issues between the world’s top two economies.
U.S. President Donald Trump and Chinese Vice Premier Liu He, who is also a member of the Political Bureau of the Communist Party of China Central Committee and chief of the Chinese side of the China-U.S. comprehensive economic dialogue, signed the China-U.S. phase-one economic and trade agreement during a ceremony at the East Room of the White House in Washington D.C., the United States, on the 15th of January, 2020.
Sino-US trade tension, during the last 18 months has created a negative impact on the global economy and state of confusion and uncertainty. China and the US are the two major economies of the world and any instability sends a negative message to the rest of the world. Unfortunately, the trade tension has also spoiled the political front too. International peace and stability is very fragile and may not be able to face any jerks.
The signing of the first phase was welcome by the international community and experts, professionals and prominent figures have expressed satisfaction and optimistic views. Definitely, stability and trust will be restored in the trade, investment and political fronts globally.
It is worth mentioning that the tension was initiated by the US and the Chinese tried their best to avoid it. The US side was giving various tweets or statements to offend China and even issuing threats and warnings to China. But there was no single aggressive statement from the Chinese side. This is the beauty of Chinese wisdom.
I was educated in China and trained in China, the best thing which I have learned from Chinese wisdom is that, do not offend anyone, focus on your own work and prepare yourself for any worst scenario.
The world may witness Chinese behavior in the last 18 months that China has always tried to avert any tension and offered to negotiate amicably to resolve all differences. Even that China has reciprocated the imposition of tariffs on American products, but it was mild or less than the American and it comes in effect at a much delayed time when there was no other option was left. China extended all possible options to the US to avert the tension, but at a point when there was no option China responded reciprocity in a much mild manner.
China strictly following its vision of Peaceful development and does not want to disturb global peace and stability. China has demonstrated this in the whole journey of Sino-US trade tension.
The agreement ranges from expanding bilateral trade in such sectors like agricultural products, manufactured goods, energy, and service, further broadening market access, to enhancing the protection of intellectual property (IP) rights. This part of the deal on better protection of IP rights has positive implications for both nations, as China showed its will and capability to be a more dynamic and innovation-led economy. The Chinese economy is shifting to hi-tech and upper segment from its traditional Agro and large scale manufacturing base.
The two sides also agreed to establish a bilateral mechanism for two-way assessment and dispute settlement, and the United States has pledged to cancel some of its additional tariffs on Chinese products, marking a policy change from hiking to cutting additional tariffs. It is expected that the dispute settlement mechanism will play an important role in the days to come and there will be no issue un-addressed or un-resolved in the future. It is hoped that the trade between the two big economies will be smooth and stable.
The US thinks that they are the winner and beneficiary of this deal. There is no doubt that the US may gain more economic benefits in the short term. But think, what they have to export to China, the agriculture is highly subsidized in the US and export at the cost of national taxpayers money, is it wise? The common man will ask the Government, how they can subsidize agriculture and export to China at low prices? Regarding the High Tech or advanced technologies, are the Americans willing to export to China? Consumer products or low tech products are not completive in the US and may not be able to find a suitable market in China.
While China is a deep thinking nation and may not announce big victory and the system prevailing in China, it may not require the Government to be over-excited about its gains to gain public sympathies or political support. Chinese gains or rational and they are relaxed, time will decide, who was the winner in real sense. China needed time and it gained time. We admire Chinese wisdom and cool behavior.
It is also expected this signing of this deal will also bring a positive impact on the political and diplomatic front too and geopolitics will be improved. This deal will be a good turning point for the whole world and promote peace, stability, and development all around the world. Yet it is a long way to completely settle all pending issues. The good beginning is appreciated and be optimistic. It is just beginning and a lot more needs to be done in the days to come.