Sino-US ties at a crossroads

The confrontation instigated by the United States with China continues to intensify. The pandemic has escalated tensions between them that were already at a record high before the Covid outbreak. This fraught situation has variously been described as a new Cold War, end of the post-1979 era, a geopolitical turning point and less seriously, a 'scold war'.

What does this mean for the world's most consequential relationship? Is this a transformative moment from where ties will have to be completely redefined rather than reset? Will the two global powers arrive at a modus vivendi or will their stand-off become an enduring feature of the international landscape? How much of China-bashing in the US reflects campaign politics in an election year? Is the friction an inevitable result of a global power's response to the rise of another that can challenge its predominant position - a classic phenomenon witnessed throughout history when power dynamics shift fundamentally?

Is economic decoupling between the two inescapable? Or will present hostilities eventually give way to a restructuring of ties in which relations may end up being fiercely competitive and selectively cooperative but with overtones of hostility?

Clearer answers will emerge over time. But a key factor that could shape future relations will be the US presidential election in November when the next occupant of the White House will have to decide how to manage relations with China: to stabilise the relationship on new terms, or embark on a course of drawn-out confrontation. In both eventualities, a return to engagement that previously characterised relations with China is unlikely.

This is because the political consensus and public opinion that has emerged in the US - fanned by President Donald Trump's actions and rhetoric - sees China as an adversary that has exploited the US on trade and poses a strategic challenge that needs to be countered and contained, not engaged. Many foreign policy advisers of the Democratic contender for the presidency, Joe Biden, also happen to be hawks on China. Therefore, whoever wins the election will likely follow a tough line on China.

Beijing's interest lies in de-escalating tensions and steadying relations. But it is up against the weight of USled Western opinion that has become increasingly sceptical and hostile towards China. The European Union which has strong economic equities in ties with China is being assiduously courted by Beijing to encourage it to follow an independent path from Washington. But developments in Hong Kong have added to European suspicions of China.

In the face of Trump's provocative statements and actions during the pandemic, China has generally kept its cool, reacting sharply only when Washington crossed certain red lines or when Trump's patently misleading narrative needed to be countered. But top US officials led by Trump have continued virulent criticism of China. This provoked China's foreign minister Wang Yi to warn that the US was pushing China to the brink of a new Cold War. But he also stressed that both countries had a major responsibility for "world peace and development", and that "China and the US stand to gain from cooperation, and lose from confrontation".

There are limits though to China's forbearance in the face of offensive US actions. There is fresh thinking in Beijing about how to deal with a more antagonistic Washington and growing nationalist sentiment that their country should push back against Western criticism and US bullying. This sentiment is already driving a more assertive Chinese policy in Asia.

China is expected to emerge as the world's largest economy in a decade. This should itself persuade the US and its Western allies that engagement is necessary in their own interest with a country that will be pivotal to achieving post-pandemic global economic revival and addressing a host of other international challenges. However, this rational calculation and also the fact that China remains Washington's biggest lender may not be enough to overcome US apprehensions about the challenge posed to America's global position by China's rise.

A report titled United States Strategic Approach to the People's Republic of China, submitted by the White House to Congress last month, lays bare these wide-ranging concerns. It says that US National Security Strategy demands that Washington "rethink the failed policies of the past two decades - policies based on the assumption that engagement with rivals and their inclusion in international institutions and global commerce would turn them into benign actors and trustworthy partners". The future approach should be based on "tolerance of greater bilateral friction".

The report says that America is in strategic competition with China and enumerates the economic and security challenges posed by Beijing. The tone is of a power anxious to counter a strategic challenger whose economic strength and reach have already eroded America's global pre-eminence.