Opportunities Not to Be Missed

Editors Note： The eighth round of the China-U.S. Strategic and Economic Dialogue （S&ED） and the seventh round of the China-U.S. High-Level Consultation on People-to-People Exchanges took place in Beijing on June 6-7. Prior to the most intensive annual dialogues between the two nations， Chinas Ministry of Foreign Affairs convened the 16th Lanting Forum in Beijing on June 2， during which distinguished scholars and senior Chinese officials in diplomacy， economy and education gave opinions on the development of， and questions surrounding， China-U.S. relations. Edited excerpts of the forum follow：

More dialogues

Zheng Zeguang， Vice Minister of Foreign Affairs： The S&ED and the High-Level Consultation on People-to-People Exchanges are the most important talks between the two states. They have a broad agenda and involve a large number of high-ranking officials from most departments. Since they were created， these talks have played a significant role in building mutual trust， promoting mutual benefit and enhancing friendship.

Under the theme of “strengthening China-U.S. economic ties，” this years S&ED focuses on three major agenda issues： macroeconomic conditions and policy， trade and investment， and financial stability and reform.

Zhu Guangyao， Vice Minister of Finance： The S&ED mechanism was first established in 2006 during the [George W.] Bush administration and was continued by the Obama administration. It shows the dedication of the two sides to boost bilateral ties.

Last year， the trade volume between China and the United States reached $558.4 billion， and bilateral direct investment exceeded $140 billion. Over 10，000 people travel across the Pacific Ocean between the two nations every day.

The S&ED serves as an important platform to strengthen mutual understanding and trust between the two sides and expand their common interests against all odds.

Qin Yaqing， President of China Foreign Affairs University： The two states have great potential to work together on a broad range of issues. China and the United States have made achievements through cooperation not only in bilateral affairs， but also in multilateral agendas and global issues.

Our university， for example， hosts a joint training program for Afghan diplomats. The program is sponsored by the governments of both China and the United States. Other achievements of China-U.S. cooperation include the Iran nuclear deal， climate change and so forth.

Zhou Qiangwu， Deputy Director General of Asia-Pacific Finance and Development Center， Ministry of Finance： The two sides have reached 469 deals through the past seven rounds of dialogues. However， the two governments have failed to make progress on some critical agenda items， leaving many people questioning the effectiveness of the talks. For instance， the lack of transparency in U.S. national security reviews keeps many Chinese investors out of the United States.

We need to encourage more businesspeople to join in the talks. Two decades ago， many Chinese companies were state-owned， and government officials could speak on their behalf. But at present， more than 95 percent of large companies are owned by different entities over which the Central Government can no longer exert control.

Difficulties exist

Zheng Zeguang： Although the two governments have repeatedly expressed willingness to build mutual trust and control disputes on some contentious issues， hostile， opposing voices can often be heard on both sides. Some senior diplomats and scholars in the United States are inclined to see China as a threat.

From my observation， those who refer to China as a threat might genuinely not know about China， or they tend to look at China through the lens of the obsolete Cold War mentality. So， their conclusions are not based on reality， and their views cannot represent mainstream U.S. thinking about China-U.S. relations.

With regard to the South China Sea issue， both China and the United States should manage their differences through talks in a joint effort to safeguard peace and stability in the region. The United States， which is not a claimant in the South China Sea， has said that it does not take sides in sovereignty disputes. It is our sincere hope that the United States honors its commitment and reaches a conclusion based on historical evidence and reality instead of on whether or not a claimant is a U.S. ally.

Qin Yaqing： Against the backdrop of weakened trust， we should work to transform disputes into potential areas for cooperation. A case in point is cybersecurity， where the two countries did not always see eye to eye but still managed to ink a deal during President Xi Jinpings visit to Washington last September. This leaves many wondering： Can we pull off a similar agreement on the South China Sea issue？

As for disputes in the South China Sea， I need to mention that China has solved boundary disputes with 12 neighboring countries through negotiations. Settling territorial disputes anywhere in the world is not an easy job. Instead of complicating regional tensions by in-creasing reconnaissance operations， the United States could have played a constructive role by bringing all parties back to the negotiating table and facilitating dialogue.

Ruan Zongze， Vice President of China Institute of International Studies： It seems that China-U.S. relations have come to a new crossroads. The ongoing presidential campaign in the United States again makes China a target for both Democrat and Republican candidates. It remains uncertain whether the S&ED will continue during the next U.S. administration.

Lu Feng， professor of National School of Development， Peking University： China and the United States need to reach a consensus to prevent trade protectionism. Recently， the U.S. Government has launched anti-dumping and countervailing duty investigations into steel plates from China. The falling prices of iron and steel are a result of overcapacity in the industry； they are not caused by government subsidies. As a matter of fact， the Chinese Government restrains exports of iron and steel， as they are categorized as resources.

The two sides have worked together on coordinating macroeconomic and financial policies. But， they have wide divisions on some critical economic agenda items. For example， the United States boycotts the Asian Infrastructure Investment Bank （AIIB）， proposed by China， though many of its European partners have joined the organization. The two countries have made little headway in the bilateral investment talks despite years of negotiation. The United States excludes China from the TransPacific Partnership talks， which the Obama administration considers a cornerstone for establishing future regional trade rules.

It will mean a lot to world economic stability if the two countries can successfully mitigate their divergence of opinions.

Dynamics

Hao Ping， Vice Minister of Education： Apart from security and economic issues， the two countries have made remarkable progress in people-to-people exchanges since the highlevel consultation mechanism was established in 2010. Up to now， China and the United States have maintained sound cooperation in the fields of science and technology， culture， education， health， and protection of womens rights.

During the fight against the Ebola epidemic in West Africa last year， China and the United States worked closely on scientific research， medical care and international aid.

Yuan Ming， President of Yenching Academy of Peking University： Despite frequent exchanges between the two states， transcultural communication needs to improve. President Xi and his counterpart， U.S. President Obama， have respectively announced an ambitious program to sponsor more international students on both sides. Currently， the number of U.S. students who study Chinese at Peking University is increasing. Perhaps their stay in China is short， but the experience of interacting with locals could certainly help them understand more about China. It has been proved again and again that the most robust dynamics for bilateral relations lie in people-to-people exchanges.

Yuan Peng： The least we could do is agree to disagree while keeping in mind the bigger picture of China-U.S. relations.

Last year， I visited the United States， where I learned that 102 Confucius institutes have been set up in universities across the country. This reflects the U.S. peoples interest in China and the Chinese language. There is huge room for such cooperation. The two sides should not allow a few issues to adversely affect the future direction of our sound relations.