"China Calls for 'Peaceful Coexistence' with the U.S. Despite Differences"

In the ever-evolving landscape of global geopolitics, China's recent call for 'peaceful coexistence' with the United States stands as a significant development. This call, made by Chinese Foreign Minister Wang Yi, comes at a time when the two superpowers are locked in a complex web of trade tensions, technological competition, and ideological differences. The question that arises is: how does this call align with China's strategic goals and economic policies, and what are the potential implications for global economic stability?

The Strategic Context

China's call for peaceful coexistence is not merely a diplomatic gesture; it is a strategic move aimed at balancing its aggressive economic and technological policies with a more conciliatory diplomatic stance. This approach allows China to pursue its long-term goals while mitigating potential backlash from the U.S. and its allies. As Wang Yi noted, "China and the United States will stay on this planet for a long time. They must therefore seek peaceful co-existence." This statement underscores China's recognition of the U.S. as a significant global power and its desire to avoid direct conflict.

Economic Interdependence and Technological Competition

The economic interdependence between China and the U.S. is profound. Bilateral trade between the two nations totaled an estimated $643.2 billion in 2023, with the U.S. exporting $195.5 billion worth of goods and services to China and importing $447.67 billion. This substantial trade volume indicates the economic interdependence between the two nations. Peaceful coexistence could further enhance this trade relationship, benefiting both economies.

However, the technological competition between the two countries is intense. China is transitioning to a value-added, high-growth, high-tech economic model, aiming to establish its companies as leaders in sectors like 5G, artificial intelligence, and semiconductors. The U.S., on the other hand, has imposed export controls on technologies such as semiconductors and import controls on Chinese technology like Huawei smartphones. This technological competition could escalate into a full-blown war, leading to innovation stagnation and increased costs for both countries.

The Role of International Organizations

International organizations could play a more active role in mediating U.S.-China relations. The United Nations, for example, could serve as a platform for dialogue and cooperation between the two countries. As a permanent member of the UN Security Council, China has increasingly attempted to manipulate and subvert international organizations to advance its goals. However, a call for peaceful coexistence could encourage China to use these organizations more constructively, promoting global stability and cooperation.

The Broader Geopolitical Landscape

The call for peaceful coexistence between the U.S. and China could significantly impact the broader geopolitical landscape. It could encourage other major economies to adopt a more balanced approach in their relations with both countries. For instance, the European Union is more likely to heighten its political expectations of countries with which it does business, advocating for a newly outward-looking G7 and EU. This could lead to a more nuanced and less polarized global economic order, where countries are not forced to choose sides between the U.S. and China.

However, it could also lead to a more fragmented global economic order, with different regions and countries aligning with either the U.S. or China. For example, the Regional Comprehensive Economic Partnership (RCEP), led by China, is projected to add $500 billion to global trade by 2030. This could provide an alternative to the U.S.-led economic order, encouraging other countries to engage in trade and investment with China.

Conclusion

In conclusion, China's call for peaceful coexistence with the U.S. is a strategic move aimed at balancing its aggressive economic and technological policies with a more conciliatory diplomatic stance. This call has significant implications for global economic stability, encouraging other major economies to adopt a more balanced approach in their relations with both countries and promoting a more active role for international organizations in mediating U.S.-China relations. However, it could also lead to a more fragmented global economic order, with different regions and countries aligning with either the U.S. or China. The world must choose: cooperation or collapse.