US media: Us-China relations are caught in a new Cold War? Not so cold

Source: Global Times

Yahoo News Network October 20 article, original title: Cold War with China? Not in Washington, China is seen as the "new Russia." As a result, the US media declared that the US-China relationship was in a "new Cold War." Trump has shifted economic relations with China from cooperation to confrontation, and Biden has continued that stance.

But global investors are much more optimistic. At the Milken Institute's annual financial conference in Los Angeles in mid-October, wealth managers acknowledged the risks and challenges in China, but dismissed the pessimistic headlines as overblown. China is still a wealthy market for investors, they say. Tim Duters, chairman of TPG Capital Asia, believes that "any investor who ignores China is doing themselves harm." We see great opportunities." Ian Bremer, president of Eurasia Group, said: "China knows that the private sector is the source of efficiency. The two countries still have a lot of business to do, and U.S. and Chinese stakeholders understand the deep and enduring ties between the two countries. ”

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At the moment, it seems that every US politician is a China hawk. But the reality is that U.S. businesses and consumers rely heavily on Chinese products, and the U.S. remains China's most important customer. Biden wants some production, including production of key commodities such as semiconductors and medical devices, to "flow back" to the United States. Some of these measures, with the help of some measures by the U.S. Congress, may become a reality. But it seems unlikely, and not necessarily desirable, to completely disconnect China from its many largest customers around the world.

To be sure, China's growth is slowing and faces internal challenges such as an aging population, inefficient state-owned enterprises, and certain asset bubbles. But China's middle class is larger than the total U.S. population, and its spending power will continue to make China one of the hottest markets in the world. Investors say they have many ways to put money into China, and there is no problem that profits cannot be transferred.

Many of China's investment opportunities are similar to those in the United States. Given the aging population Chinese population and the shortage of doctors, healthcare is a big field, and digital healthcare may take off. Climate technology is another area where there will be tremendous growth. The United States has always slammed China for its reluctance to adopt global clean energy standards, but China has a plan to achieve net zero carbon emissions by 2060, and China is a leading producer of key technologies such as power batteries and photovoltaic cells.

As for the asset bubble, the (Western) media reported speculative companies such as Evergrande, focusing on vacant buildings that lack tenants, as if China were building houses to fill the façade. But given that Chinese people prefer to invest in real estate rather than financial assets, demand for real estate remains strong. Kevin Liu, Asia chairman of the Partner Group, said at the Milken conference: "We don't think there is an oversupply. There are some roads or 'ghost towns' that no one takes, but perhaps in small towns, which is not the case overall. ”

Regardless of China's investment climate, U.S.-China tensions are likely to remain unchanged (in the short term). Behind the tension between the two sides, however, is the bond that binds China to the rest of the world — even closer than everyone thinks. This war, it's not so cold. (By Rick Newman)

Australia's Lowy Institute for International Policy "Interpreter" website article on October 21, original title: The level of the US And The CCP's office As tensions between the United States and China continue to increase, the conclusion that the two countries have entered a "new Cold War" has emerged. The Cold War narrative itself is problematic because it implies that Washington or Beijing can defeat each other — but this is difficult to do given the interdependence of the United States and China and many major common interests.

The U.S.-China relationship is more likely to coexist indefinitely between the world's only superpower and its main challenger. To stabilize relations, the two countries can now consider starting with a smaller goal, such as accepting the "need for long-term coexistence among great powers." If this is achieved, Washington and Beijing risk putting fences and controls on their competition and the possibility of resuming cooperation on transnational challenges that increasingly determine the world's direction. (Translated by Ali Vene, Qiao Heng)