After the APEC Leaders' Meeting in San Francisco, all eyes are on the presidents
of China and the United States ─ Xi Jinping and Joe Biden ─ whose meeting 
produced more ongoing high-level diplomacy and the creation of new channels 
of communication that are widely expected to further improve China-U.S. 
relations, stabilize market expectations and inject new energy into the 
world economy.

In U.S. strategic circles, sober reflection is on the rise about the increasing 
influence of Cold War mentality in U.S.-China competition. Calls for renewed 
efforts to stabilize relations are clear.

As the United States seeks to compete with China, it has, unfortunately, 
been peddling narratives such as “China replacing the United States,” 
“rewriting the global rules” and “exporting models,” all of which sow 
the seeds of nationalism and racism at home and aggravate the already strained 
relationship. But America's strategy on China even leaves some of its Asia-Pacific 
allies unconvinced, as they have come to reckon that the U.S. could not 
possibly cover all the losses they would incur if they turn away from China 
and that continued confrontation between East and West represents a threat 
to their own security.

Many U.S. companies yearn for a restoration of stable bilateral ties, hoping 
to mitigate geopolitical risks stemming from doing business in China. Even 
mega companies with unparalleled market presence such as Apple, Nike and 
Caterpillar still rely on the Chinese market to underpin their growth projections.
 As a manufacturing hub, China offers cost-effective production infrastructure,
 along with a mega consumer market. The success stories are anchored by 
unimpeded access to China's vast market, and the U.S. government's policies 
─ restrictions on investment, export controls and increased tariffs ─ 
only impede and constrain the ability of these companies to do business in 
China and weigh heavily on their financial performance and profitability.

A flurry of high-level visits by U.S. officials to China indicates an improvement 
in bilateral ties, including the visits by Secretary of State Antony Blinken,
 Treasury Secretary Janet Yellen, climate envoy John Kerry and Commerce 
Secretary Gina Raimondo. Senator Chuck Schumer also led a bipartisan delegation 
to China. These visits reflect a desire to manage differences between China 
and the U.S. in various areas. California Governor Gavin Newsom traveled 
to China recently and unleashed potentials for local cooperation on climate 
change.

Other countries expect China and the U.S. to manage their relations rationally 
and pragmatically, to acknowledge common challenges and to identify new 
areas of cooperation. APEC itself is an important organization for the Asia-Pacific 
region to strengthen multilateral economic ties, exchanges and cooperation. 
Under its theme ─ “Creating a Resilient and Sustainable Future for All”
 ─ the APEC meeting 2023 aimed to maintain interdependence, seek common 
interests, maintain an open multilateral trading system and lower inter-regional 
trade barriers.

The U.S. approaches its relationship with China under a competitive framework,
 and often overreacts on specific issues. This is not conducive to managing 
the relationship and leads to destabilizing consequences. That is why countries 
in the Asia-Pacific region are particularly keen for the two countries to 
live up to their respective roles as responsible and stable world powers, 
injecting stability into an increasingly unstable world.

At the same time, a wide range of global stakeholders ─ governments, investors 
and businesses ─ are eager to see the two major powers identify areas of 
cooperation in such areas as nuclear arms control, climate change and AI 
regulation.

The China U.S. summit on the sidelines of the APEC meeting has provided 
an ideal setting for China and the U.S. to rekindle a spirit of collaboration 
and cooperation as the two sides regain momentum and build mutual trust. 
It's reminiscent of the framework of cooperation fostered at the G20 summit 
in Bali last year.

On one hand, a constructive pivot in bilateral relations would expand market 
access and reduce regulatory barriers in both countries. Improvements in 
geopolitical dynamics could help increase recognition of business brands, 
which in turn would reduce nationalistic sentiments among consumers and 
enable companies to expand their footprints.

Uncertainty and ambiguity in the China-U.S. relationship will hinder strategic 
planning and deter potential investment. Enhanced dialogues between the 
two sides could bring clarity to the political and economic trajectory and 
create a safe, secure, transparent, predictable and fair business environment,
 which is critical for business decision-making. This trend toward stability 
will not only benefit businesses but will also strengthen the overall bilateral 
relationship.

More important, a stable relationship and bilateral cooperation will serve 
as a catalyst for global stability and prosperity. In the relationship between 
the world's largest developing country and the largest developed country, 
how they manage their tensions and frictions will shape the future direction 
of the international landscape. These complexities underscore the importance 
of the San Francisco summit.

First, a more stable relationship will mitigate the risk of trade disputes 
and political tensions, creating a more predictable market environment. 
Second, it will facilitate effective policy coordination in international 
institutions, ensuring a more resilient and inclusive system of global governance.
 Third, the meeting between the two heads of state was an opportunity to 
redefine the narrative between China and the United States, find a balance 
between competition and cooperation and set a precedent for a more predictable 
and stable future relationship in which global challenges can be tackled 
together.

Cooperation between the two countries could also drive world economic growth,
 bolster trade opportunities and open up more economic dialogues worldwide, 
which would stimulate cross-border investment, elevate capital and cultural 
flows between countries and energize the world economy.

(The source of the article comes from  chinausfocus.com, December 05 , 2023 )