Competition between China and US primarily economic
- By Zheng Yu
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E-mail China.org.cn, February 23, 2016
In the area of domestic economic or national strength development, an important area of China-US competition, the US has performed better. The Obama administration's policy of bringing manufacturing back to the US has produced visible results, leading to effective technological progress, a steady increase in employment and an appreciating dollar.
In contrast, the domestic economic situation in China has worsened, with aggravated capacity excesses, more companies forced out of business and increased debts for local governments, leading to substantial financial and macroeconomic pressure.
The once widely publicized "Beijing Consensus" or "China Model"－of government-led development and an industrial structure shaped by government investment－was objectively challenged, and the model faces readjustment. And the US experience in economic governance has attracted increasing attention from China.
At the end of October 2015, Chinese media intensively reported on US surveillance planes flying over China's territorial waters around the Nansha Islands in the South China Sea, causing an uproar in China over the violation of Chinese sovereignty.
There was widespread suspicion in China that the US was deliberately provoking military frictions to tie down China' stable development. It was against this backdrop that the US issued a statement on adhering to the one-China principle and hoping for cross-Straits peace and stability, which helped mitigate suspicions in China and further testified to the US' intention to engage in competition with China mainly in the economic field.
The competition between the two countries is competition over international strategy and policy only to a certain extent. In the final analysis, it is competition over overall national strength, economic strength in particular. The economic focus of China-US competition has had a positive influence on industrial technological progress throughout the world and will help the two countries develop competitive cooperation and China to readjust and reform its domestic policies.
The author is a scholar at the Chinese Academy of Social Sciences. chinausfocus.com
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