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October 14, 2011

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New US envoy stands for balance and reason in resolving disputes

IT takes a balanced mind to mitigate trade disputes.

Mr Gary Locke, the new US ambassador to China, exemplified this spirit of balance when he chatted with reporters in Shanghai yesterday on a range of issues from currency exchange rate to investment.

As America's envoy to China, he of course represents the interests of the government and the people of the United States, but he does not pose as a Mr Right and does not defend everything American. He reasons.

On the passage on Tuesday by the US Senate of the Currency Exchange Rate Oversight Reform Act, Locke said: "It's only an action by the United States Senate. It's not a final action by the United States Congress. The legislation now moves to the House of Representatives, where it can change very dramatically."

But reading many news reports and opinions - Chinese and foreign - one sometimes gets the impression that the Senate action was taken by the United States itself.

Few Chinese people understand how the US political system works and how legislation evolves in the Senate and the House of Representatives, and how it is influenced by the White House. Thus, many Chinese people tend to be stirred, and inflamed, by a single Senate signal.

Although he said the passage of the currency bill was only a Senate action, he did not mean - as many Chinese media outlets and Internet users would hope him to mean - that the Senate bill was wrong in its entirety.

"The White House has indicated that we understand and share some of the concerns of the members of the Congress and of the people of America about the valuation of the RMB (yuan) and, most importantly, we understand and share the concerns about the lack of a level playing field between US companies and Chinese companies," he said. "But the White House has serious concerns about the legislation - concerns that many elements or some elements of it violate international trading rules."

That's a balanced view of the controversial bill.

As a Chinese journalist, I see no significant causal relationship between China's exchange rate and America's employment, but I can't wish away the worries of many Americans to that effect.

Bashing each other serves no one's best interest. Whenever you bash someone, you're likely to confuse what's intended and what's not.

"Worse than an intended conflict is an unintended conflict," said Mr Locke.

Worse than an unintended conflict, I would say, is to worsen it into an intended conflict.

There are big mouths in both the US and China. Each side also has its clear minds like Gary Locke.

If you look back at the history of Sino-US discussions about China's exchange rate, you will find that clear and balanced minds have prevailed most of the time.

Clear minds

Clear minds are needed in many other aspects of China-US cooperation.

Some Americans worry that US manufacturing businesses are losing their competitiveness in the global market as China has become a "world factory." But see how well many American firms have fared in China.

Then as US Commerce Secretary, Mr Locke last year led a high-powered trade delegation to Shanghai to promote cooperation in clean energy, which he believes will create many jobs for Americans.

"We're very pleased with the cooperation ... on clean energy," he said yesterday. As China has an enormous need for energy, he observed, American firms can help a lot in making China much more energy efficient.

Actually, American firms can get a big slice of the Chinese markets of general transport, aviation, clean energy, health care and information and communication technology.

In the coming year, Mr Locke will organize trade missions in those five areas to emerging Chinese cities.

Step by step, China and the US have come closer.

There will be noise, even racket, in the process, but if we lend an ear to each other, the noise will fade away.




 

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