China and America SAED.

Thi is the second and concluding part of the article.

Bilateral Relations: China-U.S. bilateral relations seem to be going north with several important issues, both at the bilateral level, as well as global, willy nilly driving them in consort. On the bilateral front, some of the activities lined up are an official visit to China of the United States President, the exchange of military delegations, American participation in the Shanghai World Expo in 2010, facilitation of visa procedures on either side, and restarting the dialog on the issue of human rights.

On the economic and financial side, the two sides resolved to take necessary steps to revive their domestic economies by increasing savings in the U.S. and increasing spending and consumption in China. The second important issue is to build a powerful financial system with a proper regulatory framework in place. Thirdly, to work against protectionism and towards open markets, creating more jobs, etc. And fourthly, to reform the global financial system and to take care of future crises.
Global and regional issues also took up considerable time and effort of both the countries, with both of them resolving to hold joint discussions and exchanges as required, on the issues of low carbon economy, climate changes, energy, environment, etc. Specific projects that would be pursued for fruitiion were clean, and efficient power, clean and efficient transport, clean air and forest, and wet land protection.

It is clear that the United States and China have a lot to gain from mutual co-operation and with America’s hands full in Afghanistan, and Iraq, it may not have much of a choice than to be ‘friends’ with China, much against its natural tendencies to show off its ‘muscle’ and ‘brains’.
Concluded.

China and America SAED.

You cannot thrash them all. You cannot beat them all. The strength of your opponent defines your options in dealing with him.

In his over 25 centuries old treatise, “The Art of War”, the Chinese master, Sun Tzu, had wrote:”He who wishes to fight, must first count the cost”. And quite appropriately, perhaps, the Americans seem to be following the advice of the Chinese master diligently in avoiding a confrontation with China. China is too big, and too powerful to be trifled with. And so, the American strategy toward China is predictably different from that applied to Iraq, Iran, Libya, Saudi Arabia, and so on.

Las week, the 28th of July, to be precise, a new chapter, as it were, opened in China-U.S. relations, with the successful conclusion of the first round of China-U.S. Strategic And Economic Dialog(SAED). The dialog revolved around the theme of strategic and long term issues concerning both the countries in particluar, and the rest of the world, in general. The objective of holding the dialogwas apparently to achieve a deeper understanding of each others’ views, to bring about consensus in thought and action, to increase mutual trust that follows greater understanding, to take matters forward through mutual co-operation, and give a filip to their bilateral partnership.

A pretty long list of wishes. But one which both the sides seem to be keen on achieving, at least apparently. Of course, for their own reasons. It is difficult to imagine America giving space voluntarily to Chinese ambitions for World dominance. At the same time, the U.S. may not have many options at its disposal, in dealing with China. And the current economic crisis has only made it worse. America may be slowly, but reluctantly, coming to the realization that it cannot always call the shots. And progress in these talks may result in some benefits too, especially for its beleagured industry, and banking and financial system by attracting more Chinese imports of American goods and services.
To be concluded.