The recent virtual bilateral meeting between United States President Joe Biden and Chinese President Xi Jinping marked another chapter in the ongoing US-China confrontation. This rivalry spans multiple fronts, including ideological and cultural hegemony, and the escalating trade wars often referred to as the New Cold War. Following the meeting, the differences in the positions of the two nations became more apparent.
US Concerns About China
The United States has raised several reservations against China during the summit. Firstly, the US expressed concern over the human rights violations allegedly taking place in Xinjiang (regarding Uighur Muslims), Tibet, and Hong Kong.
Trade imbalances were a significant point of contention, with the US’ trade deficit with China approximately USD 375 billion in 2017. In an attempt to protect American workers and industries from perceived unfair trade practices, former US President Donald Trump imposed import duties on Chinese exports to the US. Moreover, the US Treasury Department has labeled China as a currency manipulator.
The US also voiced its opposition to China’s assertiveness in the South China Sea and reaffirmed the importance of freedom of navigation and safe overflight for regional prosperity.
Lastly, the issue of Taiwan was addressed. While China views Taiwan as its territory, the US remains committed to a ‘One China’ policy. It opposes any unilateral efforts to alter the status quo or undermine peace across the Taiwan Strait.
China’s Concerns About the US
In response, China raised objections about the US-led alliances and groupings. They argued that these partnerships created global divisions, referring explicitly to the Quad grouping involving the US, India, Australia, and Japan, and the AUKUS deal. China also criticized the proposal by the US to expand G7 to G-11 without including China.
Furthermore, China has launched alternative financial institutions like the Asia Infrastructure Investment Bank, and New Development Bank, to challenge US-dominated International Monetary Fund, World Bank, and World Trade Organization.
Triangular Dynamics: US-India-China Relations
In its strategy towards China, the US aims to support India via military, diplomatic, and intelligence channels in addressing continental challenges, such as the border dispute with China.
The United States also backs India’s reservations against China’s Belt Road Initiative and calls for transparency in infrastructure-debt practices. The ‘Build Back Better World’ (B3W) initiative announced by the G-7 democracies is seen as a counter to China’s Belt and Road Initiative (BRI).
Additionally, the US supports a robust India as part of its strategy to balance China in the strategic Indo-Pacific region. As a result, India and the US have signed four pivotal defense agreements.
A Delicate Balance: Way Forward
With the escalating tensions between the two superpowers, both leaders have a responsibility to prevent their competition from descending into conflict.
From India’s perspective, instead of being entangled in US-China rivalry, it should focus on its interests and growth. With its rising global power, India should maintain peaceful mutual relationships while ensuring its interests are prioritized.