U.S. Cannot Order China to Do Anything

U.S. Undersecretary of State Robert D. Hormats, who is in charge of energy and agricultural affairs in the United States, proclaimed on Aug. 3 that the U.S. cannot order China to do anything, and Sino–U.S. economic relations should be handled by “soft touch” in order to better respect China’s national interests.

Hormats attended an academic seminar about the long-term trend of Sino–U.S. relations in Washington, D.C. With reference to “soft power,” an idea that was first proposed by Harvard professor Joseph Ney, Hormats put forward a concept of “soft touch,” adding that the U.S. might introduce this concept in handling Sino–U.S. economic relations.

Hormats explained that “soft touch” means that the U.S. cannot order China to do anything because China, as a sovereign state, has her own national interests that must be respected by the U.S. when both countries are attending global forums like the G20. China will by no means bow to the opinions of the U.S., the E.U. or even Japan; she knows her own mind.

On the other hand, we should notice that the world economy and China are, in fact, impinging on one another. With the rise of China’s comprehensive power, their mutual influence is getting even stronger, and the future of China’s economy is bound up with the global economy.

Hormats indicated that according to the concept of “soft touch,” the U.S. would like to point out that China’s external economic policy is closely interrelated to the domestic stability of the country. Meanwhile, if there is any domestic instability or turmoil in global trade, China’s economy will no doubt be negatively affected too.

Improve the investment environment for Chinese enterprises

Apart from elaborating the idea of handling Sino–U.S. economic relations by “soft touch,” Hormats also explained how to improve the investment environment for Chinese enterprises operating in the U.S. He admitted that some Chinese investors are disinclined to consider investing in the U.S. in view of the political environment of the country and said the government shows concern for their worries.

Hormats said the federal government is now working on enhancing contact between state governments and local Chinese investors to eliminate “political obstacles” for investment, promote dialogues between them and ensure Chinese investment that is free from political obstruction.