CHINA / From Editor

    For the good of the world
    By Li Hong (chinadaily.com.cn)
    Updated: 2006-05-18 09:18

    A flurry of recent events point towards a growing spirit of goodwill or diplomatic finetune between the two important countries separated by the Pacific: the United States and China.

    Less than one month after President Hu Jintao wound up his first official visit to Washington and a week after the U.S. Treasury Department decided China is not manipulating its currency to garner trade gains, China’s central bank, the People's Bank of China, set its new currency exchange rate at less than 8 yuan per dollar - a level not seen since 1994.

    The break of 8:1 ratio is psychologically significant and is a manifestation of Beijing’s willingness to smooth trade relations or the "global imbalance" which President George W. Bush says favoring China. The change has been well received in the western world, and Washington especially. The central bank reciprocated it by issuing a statement saying the yuan will continue to be responsive to market regulations, a pledge that it will continue to gain value.

    Obviously, as the two engines powering the world's economy, a trade war would hurt the two countries deeply , and also drag down other economies on this globe. Many have breathed a sigh of relief now that the two giants seem to have gradually come to terms on economic and trade issues, are converging with each other and avoiding confrontation.

    By setting the currency higher, China makes its exports costlier, which may help ease the US trade deficit a little bit. Nevertheless, it's worth it to note that although the US economy is four times that of Japan, US exports to China are now only half of Japan’s exports to China. Many believed the hurdles the US administration raised in the name of protecting advanced and militarily-sensitive technologies from flowing to China ought to be chopped down, in order to narrow the trade gap.

    Will the US, the world's sole superpower, take the initiative to substantially improve its "most important foreign relationship" with China? The whole country is watching and waiting. The linchpin lies in whether the American collective elite is willing to drop its old belief that China is a threat.

    Months ago, I closely listened to Deputy Secretary of State Robert Zoellick as he paraphrased his brand-new, charismatic concept of a Sino-US 'stakeholder' relationship at the US embassy in Beijing. I was enlightened. But why can't the two become partners?

    Last week, Taiwan's Chen Shui-bian made headlines refusing to take a flight stop over offer by the State Department in the northern state of Alaska. Zoellick spoke out in an testimony at the Capitol Hill against the Taidu-commander-in-chief dragging the US into a possible war with China. Zoellick issued a clear-cut warning that Taiwan seeking independence means war.

    Taiwan is China's core interest, many here in the mainland cherishing it more than their own lives. Any help on the side of Washington to facilitate a peaceful reunification will be greatly appreciated by 1.3 billion people.

    And, there comes a thawing of military coolness. Admiral William Fallon, commander of the US Pacific forces has just invited Chinese generals to observe the upcoming U.S.-led military exercises in Guam in mid-June. It is a high-profile, goodwill gesture and Beijing is expected to send observing officers. Closer military relations will surely increase mutual understanding and build trust.

    Isn't improving Sino-US relations a blessing to citizens of both countries and world peace in general?

     
     

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