A new historical starting point for China-US relations? - Nomura

The official Chinese government website has reported on President Xi and President Trump’s joint meeting in Beijing, saying that they reached an agreement to further enhance the relationship between their two countries, points out the research team at Nomura.

Key Quotes

“This included:   

• Strengthening cooperation between the two countries as this is in the interest of both economies. 
• The four high-level dialogues (Diplomatic and Security Dialogue, Comprehensive Economic Dialogue, Social and Cultural Dialogue, and Law Enforcement and Cybersecurity Dialogue), as presented by President Xi, would continue to enhance relations and cooperation between the two nations.
• Looking to cooperate and improve coordination over key global and regional issues.” 

“President Xi said that economic ties are the foundation of Sino-US relations, which essentially should be a “win-win” game. He called for better coordination on fiscal, monetary and exchange rate policies, further cooperation in energy, infrastructure, and the Belt and Road Initiative (BRI), and a more open bilateral market between the two largest countries in the world.”  

“President Trump underscored the importance of bilateral communication and cooperation, and reiterated that the US government will abide by its commitment to the “One-China” policy. In addition, China and the US committed to work together to achieve the goal of Peninsula denuclearization, combat terrorism, and maintain the peace and stability of the Asia-Pacific area.” 

“Notably, during President Trump’s visit to China, over USD250 billion of commercial deals between China and US firms have been signed, covering energy, manufacturing, agriculture, aviation, electronics, and automobile industries. In value terms, these contracts represent nearly half of the total trade between China and the US in 2016 (USD524bn).”  

“As stated by Former US Secretary of State Henry Kissinger, Chinese leaders understand that the US will remain an influential world leader for the foreseeable future; and the root reason to build a constructive world order is that no country today, neither China nor the US, is capable of taking on the responsibility of leading the world by itself, as the US did immediately after the end of the Cold War. We maintain that cooperation, not conflict, between these two nations will increase in the medium term. The positive outcome of today’s meeting increases our conviction that a trade war is very unlikely.”