After Biden took office, responding to the domestic new crown epidemic and restoring stimulus to the US economy were the top priorities. The Biden administration has proposed a new economic stimulus plan of US$1.9 trillion to Congress. At the same time, rebuilding close alliances with EU, Japan, Australia and other allies to meet challenges has also become its priority foreign policy content. Biden’s speech at the US State Department on February 4 also emphasized this point. In many domestic and foreign affairs, the Biden administration seems to be subverting the Trump administration’s practices and deliberately changing a series of policies of the Trump administration. Some of these changes are caused by the differences in governance concepts between the Democratic and Republican parties, and some are consolidation and A political operation to expand the Democratic Party’s vote base.
However, there is no major difference between the views of the Biden administration and the Trump administration on the China issue. The only difference is how to deal with China’s challenges. You can read from Biden’s foreign policy speech on February 4 to articles written by Secretary of State Blincoln, former Secretary of State Hillary Clinton, and National Security Assistant-designate Sullivan, as well as China-related remarks on multiple occasions. They are very vigilant and worried about the rise of China and economic competition with the United States. The difference between the Biden administration and Trump is that they do not believe that China can win by imposing high tariffs and simple suppression on trade, nor can they turn against China. Instead, they have to establish an international ideological circle of allies to jointly respond. China’s challenge.
The Biden administration believes that if the United States does not increase investment in scientific research and development and uses its own advantages to achieve new breakthroughs, it may be surpassed by China. Therefore, the United States will continue to implement the Trump administration’s technology decoupling policy in the field of science and technology to restrict the export of high-tech products. But in terms of trade and investment in general industries, the Biden administration may change comprehensive restrictions because these Trump policies have already increased costs for American consumers and businesses. The Biden administration will increase financial support in the high-tech field, and increase capital investment and purchases for high-tech research projects of universities and scientific research institutions through US government departments such as the Department of Defense, the Department of Energy, and the Department of Agriculture. Officials in the Biden administration believe that the United States has the ability and technological foundation to regain its leading position in science and technology, and the U.S. government should play a role in this regard.
The problem is that there are inherent contradictions between the Biden administration’s domestic economic policies and foreign policies. Regarding China as the largest market as a challenge and an opponent, instead of emphasizing competition on the basis of complementarity, coordination and cooperation, but using the concept of the so-called “democratic alliance” to continue to contain China’s rise, no matter in which aspect it will not be beneficial to the United States Achievement of internal and external policy goals. To give a simple example, the United States is currently in a serious government financial dilemma. As of February 1, 2021, the U.S. government debt shown in the debt clock has reached 27.86 trillion U.S. dollars, which is 20 U.S. GDP in 2020. 133% of 93 trillion US dollars. Once again a large-scale stimulus is launched, the debt ratio of the US government will exceed 140% by the end of the year. This will lead to substantial fluctuations in the exchange rate of the U.S. dollar and turbulence in the financial market. If the expectations of the international financial market change, there will be problems with the financial environment required for the recovery of the US economy. As the largest holder of US dollar assets, the policy coordination and cooperation between China and the US fiscal and monetary authorities are objectively urgently needed by the United States. It is not in the interest of the United States to treat China as a hostile competitor.
The Biden administration is trying to build a “League of Democracies” and pull some countries to stand in line with ideology. However, even the strongest “Five Eyes Alliance” in the United States has to cooperate with China in trade and investment, and is unwilling to give up the big market of China for the sake of ideology. The signing of RCEP and the Sino-European Investment Agreement withstood American pressure to reach an agreement fully demonstrates that American allies do not want to form an alliance with the United States against China. The U.S. wasting resources to build this alliance is not only a problem in its own goals, but it is also not good for the recovery and development of the domestic economy.
If the Biden administration is wise, it should stimulate domestic investment and consumption in the United States, restart the domestic economy, and at the same time bravely remove the various obstacles set up by Trump and Pompeo to poison Sino-US relations in the later years of their administration, and gradually change the seriousness of the US media. Prejudice and misjudgment have brought the relations between the two countries back to the track of dialogue, coordination and cooperation.