U.S.-China Strategic Dialogue: Collaborating for Peace

The summit between the U.S. and China in Washington D.C. was a meeting that highlighted their changing power dynamics. From a previous situation where the U.S. was making requests and giving orders to China, we now have China asking the U.S. about its business operations – and the U.S. having to explain itself.

It was last year’s financial crisis that caused this change. With the growth of China’s economy, the U.S. government realized the country’s importance and priority. However, in light of the United States’ rapidly swelling debt from its economic policies and the unprecedented number of Chinese loans that have been taken out, China is even more important now to the U.S. Adding the fact that China is a giant market for U.S. goods, it can be said that the U.S. economy and dollar have fallen under Chinese control. Indeed, the Obama administration’s cordial hospitality seems to reveal that without China, America cannot maintain its own international clout.

However, this does not imply a one-way relationship. The stability of the dollar is also a life-or-death situation for China. If there is a sudden drop in the price of the dollar, the value of China’s U.S. loan assets, the largest among foreign creditors, will plummet greatly. But even though China worries about the dollar’s future, it cannot just stop buying U.S. treasuries; the moment it puts the brakes on buying American loans, the dollar would plummet and the effects would boomerang back to China. China has in effect, been taken hostage by American debt.

This meeting, the first under the Obama administration, was not limited to the economy – climate change and security guarantees were also extensively discussed. The title of the summit was changed as well, from the original “Strategic Economic Dialogue” under the Bush administration, to the present “Strategic and Economic Dialogue.” The name change seems insignificant, but the change from “a meeting to discuss strategic issues related to economy” to “a meeting to discuss global scale strategic issues and economic problems” has great meaning.

Nonetheless, talks about the economy have only now started, and there will be more difficulties ahead for the two nations to address. Though this new G2 structure is garnering a lot of attention, the world will not act solely according to both nations’ intentions. It is just not possible at this time. Besides that, there is a firmly-rooted mutual distrust between the two countries — that is why there is a security dialogue in the first place.

As strategic partners, I expect the U.S. and China to play a constructive role in finding solutions to important international issues. Dealing with North Korea will be one such test. I would specifically like to see them make use of this dialogue to address the North Korean nuclear threat.

Another important issue would be nuclear disarmament. As it is also the moderator of the Six-Party Talks, it is essential for China to cooperate with the nuclear disarmament talks led by the U.S. and Russia.

Japan too, instead of being be a mere bystander, should actively participate in the U.S.-China security dialogues. It will be necessary for Japan to make sure that these talks contribute to peace in the Asia-Pacific region. By further developing a relationship of mutual trust with the U.S., China and other countries, in addition to strengthening its own diplomatic efforts, Japan can build harmony between these three nations.