Five Things Obama Should Do in China

Here's what the U.S. president needs to do to shore up what is fast becoming the most important relationship in the world.

BY JOHN WATKINS, JR. | NOVEMBER 16, 2009

As Barack Obama arrives in Beijing, he faces a different reality in China than either Bill Clinton or George W. Bush did at the start of their presidencies. Many commentators have remarked that, with Chinese purchases of U.S. Treasuries now crucial for funding the U.S. budget deficit, China has become America's banker. But this is only half the story: Today, these two giants are now more dependent on each other than ever before.

In the short term, a reinvigorated American economy is critical for China to re-energize its listless export sector and protect its trillions of dollar-denominated investments. And in the longer term, a fundamental restructuring of the bilateral relationship is crucial. Economic and environmental issues have pushed to the top of the agenda, moving ahead of traditionally flammable subjects like Taiwan, Tibet, and human rights.

The U.S. president will not lack for challenges to tackle in China. The five most difficult issues he faces include open markets, energy and climate change, military ties, currency, and yes, those touchy issues of Taiwan, Tibet, and China's treatment of its own people.

SAUL LOEB/AFP/Getty Images

 

John Watkins, Jr. is chairman of the American Chamber of Commerce in China, which represents the U.S. business community in China with 2,500 members from 1,200 member companies.

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BLUEDEMONJOE

1:45 AM ET

November 17, 2009

Sounds Wonderful

All sounds wonderful, but by far the toughest issue is discussing with China the importance of open markets and fixing its poor IPR practices. These topics should hold the most weight in Obama's discussions with Beijing. Not only can these issues help the American economy with jobs and decreasing the trade imbalance but also help stir competition and incentives for China's own domestic markets. However, without the US agreeing to no longer view China as a "non-market economy" in the WTO, Beijing will have little will or incentive to truly act.

 
January/February 2010