Harvard Professor Joseph Nye discusses the need for the U.S. to adjust its foreign poicy attitudes. “We can’t think just of power ‘over’ other countries, we have to think of power ‘with other countries,” he asserts.

“ Whether it be transnational terrorism or whether it be cyber-relations, whether it be global pandemics, these are issues where nobody is going to be able to accomplish it by themselves, so we're going to have to develop these networks of cooperation if we're going to govern and manage these types of processes,” he says during an interview with James Chau, Editor-at-Large of China-US Focus.

And that means that “we're condemned to cooperate, because if we don't, we are really just condemned,” he says.

In an interview with James Chau Editor-at-Large of China-US Focus, Harvard Professor Joseph Nye likens the current state of the U.S.-China relationship as a “cooperative rivalry.” He says that there are going to be elements of rivalry— take for example, issues like the South China Sea, but there are going to be areas of cooperation, areas like climate change. “We have to learn to realize that the relationship is going to be complex, but if we lose sight of the cooperative part of the relationship, we're all going to be the worse off for it,” he says.

Nye also dismisses the assertion that China is an existential threat to the United States. “I think in the long run, the US and China do not present existential threats to each other. Neither of us is trying to destroy the other. And that means that the rivalry is something we can manage.”

He Yafei argues that the balance of power is shifting in favor of emerging markets, causing anxieties among US elites that “the world is not theirs anymore.”  Nobody can live about the rules in a world of shared interests and responsibilities and shared destiny, he asserts.

He Yafei, Former Vice Foreign Minister of PRC. 

At a meeting on the margins of the G20 in Argentina, President Xi Jinping of China and US President Donald Trump agreed not to escalate the trade tensions between the two largest economies and give time for negotiators to reach a deal. Veteran Chinese diplomat He Yafei gives his takes on what lies ahead.

He Yafei, Former Vice Foreign Minister of PRC.

Key words: US-China trade war, Xi Jinping, Donald Trump, G20 Buenos Aires summit

China's well-documented air quality problems, and its status as the world leader in greenhouse gas emissions, have given the country a bad rap. Nonetheless, China is now the world’s leading producer of renewable energy and has gained global attention for its efforts to address its energy dependence problems. This video explains the nation's efforts in growing a more sustainable economy supported by green energy, including expanding wind and solar power generation, reducing dependency on coal, rolling out the “cap and trade” system to cut emissions, as well as its commitment to the Paris Climate Agreement.

Keywords: Renewable Energy, Green Energy, Paris Climate Agreement, Cap and Trade, China’s economy.

The escalating trade war has raised important concerns for the U.S. and China to negotiate including jobs, deficit, and growth. The U.S. Chamber of Commerce says on its website “Trade Works. Tariffs Don’t.” It predicts that the tariffs will cause “extremely significant damage” to conservative-leaning states: Idaho, South Dakota, Alaska, Louisiana, Alabama, and South Carolina. 3M is bracing itself for a 10 million dollar hit. Harley-Davidson is earmarking extra costs this year of up to 20 million dollars. General Electric is anticipating up to 400 million dollars in raised costs. Nor will the damage be limited to the U.S. Christine Lagarde of IMF compares the outlook for the global economy to “clouds on the horizon getting darker by the day.”

How much debt does China have, and could it cause a financial crisis? Can it cut down on debt without sacrificing its targets for economic growth ?

In recent years, economists around the world have warned of China’s surging debt-to-GDP ratio, which Forbes called “China's Debt Bomb.” But how much debt does China actually have, and could it cause a financial crisis?

Between 2007 and 2014, China’s total debt quadrupled. Estimates vary, but the International Monetary Fund puts China's total debt at 230% of gross domestic product (GDP.) China’s central government in 2017 estimated that it was around 260%. The U.S.’s debt, by comparison, is 105%, according to the U.S. bureau of public debt.

Where did China’s debt come from? Economists argue that China’s spectacular growth over the past few decades has led to rising credit and the rapid accumulation of debt. China’s debt buildup since the global financial crisis has been one of the largest in modern history. Nearly half of new debt since 2007 is in the property sector and related industries, with considerable debt held by China’s local governments, state-owned companies, and the “shadow banking” sector of unregulated non-bank lenders. However, unlike some advanced economies, such as the U.S., China’s household debt and total government debt are relatively low.

Last year, the ratings agency Moody’s downgraded China's credit rating, highlighting global concern over the amount of debt the world’s second-largest economy holds.

At last year’s 19th Party Congress, Chinese President Xi Jinping classified debt as one of the three major risks to the country’s stability. The government began a campaign to reduce corporate debt, tighten controls on local government spending, reign in unregulated non-bank lenders, and increase oversight in the banking sector. It also readjusted to prioritize quality of economic growth over quantity. Consequently, the pace of debt buildup during 2017 was much slower than in previous years.

China has taken measures to address its rapidly accumulating debt. But can it cut down on debt without sacrificing its targets for economic growth? That remains to be seen.

Tariffs and other forms of protectionism diminish opportunities, while free trade provides them to all.

In his 2012 State of the Union address, President Obama said over a thousand Americans were in jobs because he stopped what he called a “surge in Chinese tires”.

That may have been accurate. But the Peterson Institute for International Economics says Obama may have done more harm than good. It calculates that Obama’s move saved a maximum of 1200 jobs – but in tariffs it cost American consumers 1.1 billion dollars – that’s 900,000 dollars per job saved. Only a small fraction of this bloated figure reached the pockets of tire worker.

Not only that, but when losses in retail were absorbed into the equation, it seems likely that tire protectionism cost the U.S. economy around 2,531 jobs. 

Many Americans have been told that international trade - and more specifically, China’s trade relationship with the United States - is bad for workers and hurts U.S. growth. What is the real picture?

It is estimated that exports to China support 1 million U.S. jobs. U.S. firms sell high value products to China, including cars, trucks, construction equipment, and semiconductors, all of which support manufacturing jobs for Americans.

Over 350,000 Chinese students studying in the U.S. means tens of thousands of U.S. jobs; Chinese tourists visiting your cities and spending at local businesses support local jobs. You can add direct investment from China - billions of dollars of investment from China also means one thing: more American jobs.