No Hope for China Relations with the U.S.

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By Douglas A. McIntyre Published
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The Brookings Institute’s sponsored “Addressing U.S.-China Strategic Distrust” report received a great deal of media coverage recently. At the heart of the analysis are the differences between the drive of each nation to become the economically dominant one in the world. Another core difference has to do with the Chinese rejection of democracy in favor of the central control exerted by the communist party in the People’s Republic. Yet another is the growth of military friction between the two countries. The picture painted is one in which there will never be a reconciliation between the two countries, despite recommendations by the report’s authors of how this might be otherwise.

The authors suggest four paths to better relations. The first is to create an environment in which China is more likely to invest in U.S. assets and in which China’s government and economic operations are more transparent to U.S. officials. The second is to have a dialogue between the two countries about the military interests of each. The third is to lower cyber terrorism by China aimed at the United States. The last is to set talks with other nations with common interests to the U.S. and China, which would include Japan and India.

None of these solutions will work because the deep-rooted antagonism between the two nations is already too great. China’s government is convinced it can overtake the U.S. as the largest economy in the world. The proof of that is China’s rapid rise in gross domestic product, compared to the slower increase in the size of the U.S. economy. Why China would give up that ongoing advantage is a mystery.

China’s military will continue to expand. The nation does not want the U.S. to control the seas adjacent to it, the fate of Taiwan or the balance of military power in Asia.

China’s cyber terrorism is the most effective way for it to gain access to sensitive U.S. data and to potentially disrupt the internet, which is so essential to American information dissemination and commerce.

China will continue to try to best the U.S. in a number of areas because it can right now. The U.S. will continue to resist the rise of China as the world’s largest power because it does not want to take second place in a world in which it believes the only acceptable political system is democracy.

The U.S. election will be in part a referendum about how China should be treated. Many Americans are already convinced that China is responsible for the loss of millions of U.S. jobs and that this trend will continue. Unemployment may be the central issue of debate between now and November.

The Brookings Institute’s report implies that the U.S. and China see the battle between them a “zero-sum game.” It is nearly impossible to make the case otherwise, given the current state of affairs and their likely future.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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