US and China must build on positive Xi-Trump call to stabilise ties

Ahead of a Xi-Trump meeting and more trade talks, both sides must be alert to unexpected incidents that may throw the relationship off cours...

Ahead of a Xi-Trump meeting and more trade talks, both sides must be alert to unexpected incidents that may throw the relationship off course

Phone calls between the leaders of China and the United States can leave a global following keen for more detailed accounts. The latest, the third this year between Xi Jinping and Donald Trump, is no exception. They discussed topics ranging from trade frictions to a deal on the control of short-video app TikTok's US operations. Trump described the call as "very productive". Beijing said the talks were "pragmatic, positive and constructive", but without confirming US reports of a TikTok deal. That said, there are signs of progress in stabilising fraught relations, such as Beijing's willingness to discuss the TikTok issue and Washington's reported block on US$400 million of arms sales to Taiwan.

China has often emphasised the importance of direct talks between Xi and Trump in stabilising complicated bilateral ties. So the phone call serves as a platform for setting direction. It has confirmed a face-to-face meeting in Seoul during the Apec summit in less than six weeks, paving the way for Trump's visit to Beijing next year and Xi's reciprocal visit.

Trump remains unpredictable so policy flip-flops cannot be ruled out. Beijing still insists on fair treatment of Chinese investment so the question is what China gets in return for any TikTok deal. It wants a proper framework for its companies abroad to grow and develop, including in the US market.

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The trade negotiations may serve as a reference for Chinese companies going global, which tend to avoid the US market in favour of developing countries including those in Southeast Asia and the Brics grouping. But the US is still a big, attractive market if issues can be resolved on the basis of mutual respect and benefits. The Chinese government has always held that investment abroad - whether in the US or the smallest countries - must comply with local laws.

Trump's visit to China, originally planned for this winter, has been moved to the spring, suggesting both sides still need to work out the details. Thorny issues include controls on critical rare earth minerals and semiconductor chips, as well as tariffs and other trade issues.

There are still many weeks before Xi and Trump's meeting at the Asia-Pacific Economic Cooperation forum. China and the US also need to prepare for their next round of trade talks. Both sides need to be alert for any unexpected incident that may throw the relationship off course, as the 2023 shooting down of a Chinese "spy" balloon over the US did. The coming weeks will be critical. The bilateral relationship between the most powerful nations is so important for both countries, and to the world that, hopefully, they can find a way to at least keep their rivalry stable and within guard rails. This depends on both sides maintaining the current positive direction.

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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.

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