Opinion

US-China relationship can be saved despite coronavirus and trade war

Renewed cooperation or even a fresh partnership between China and the United States remains a logical and compelling solution to the problems faced by both

The bilateral relationship may sour further as China becomes a major issue in this year’s US election, but mutual benefit should bring both sides back together

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Cheah Cheng Hye is the chairman of Cheah Capital, a single-family office, and honorary chairman of Value Partners Group, a Hong Kong-listed fund management company.

Published: 9:30am, 1 Jul 2020Updated: 9:13pm, 13 Oct 2020

The US-China relationship is on the rocks and possibly headed for a nasty break-up, but don’t rush to write it off. While this may seem like a contrarian view, renewed cooperation or even a fresh partnership between China and the United States remains a logical and compelling solution to the problems faced by both nations and the world.

We need to look past the current crisis. While the politics of blame and rivalry currently prevails, the fundamentals can be summarised thusly. The two countries remain mutually dependent and their economic relationship is more complementary than competitive; the US faces its worst domestic social and economic crisis since World War II and can ill afford another cold war; and the two countries are becoming more alike as the US government and central bank resort to massive intervention in the economy while China softens its version of state capitalism through deregulation and market opening measures.

China, not Canada or Mexico, remains the largest US trade partner. The US still depends on China as a key source of attractively priced consumer goods, credit, students, tourists and talent. Students from China account for more than one-third of all foreign students in America. China remains the world’s factory; for example, Chinese steel factories are responsible for more than half of global output.