The Trump presidency hasn’t even begun, and the US-China relationship already seems to be in trouble.

Tension is fast building around a slew of issues — particularly trade, Taiwan, and the South China Sea — that are inherently irresolvable, and can, at best, be managed.

The Obama administration has parried these problems partly with recourse to climate change, a bonding issue that could be deployed at will when things get dicey.


A new super glue — a rapport enabling area of cooperation that reflects commonalities in the worldview of both presidents — is urgently needed. What could it be?


So far, the fast-forming administration of President-elect Donald Trump lacks any such glue. It needs to find some, fast. Massive infrastructure cooperation could be just the thing.

But with the Trump Administration’s indifference toward climate on the one hand and with the potential of newly emerging tensions over trade and currency on the other, China may find its relations with the United States facing an elevated risk of deterioration. A new super glue — a rapport enabling area of cooperation that reflects commonalities in the worldview of both presidents — is urgently needed. What could it be?

As the world’s two largest economies and generators of half of the entire world’s economic growth, China and the United States share a common interest in stimulating global growth and strengthening energy security through infrastructure development. Both Presidents Xi and Trump share genuine commitment to infrastructure development.

Trump has pledged to upgrade America’s national infrastructure, while the mainstay of Xi’s foreign policy is an ambitious multi-trillion dollar infrastructure development plan called One Belt One Road (OBOR) aiming to connect China and Europe in a web of highways, high-speed rail, pipelines, ports, energy terminals and fibre optic lines. Beijing has even formed dedicated financial institutions like the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund to finance those projects.

The world’s infrastructure deficit, particularly in the developing world, is alarming. Two decades into the 21st century, one-third of humanity is still lacking access to round-the-clock electricity and basic sanitation; over one billion people have no reliable phone service.

Yet the Obama administration’s response to China’s infrastructure initiatives has been muted and in some cases — such as the AIIB — it has used soft power tactics in (usually failed) attempts to undermine them. But Trump could be persuaded to go a different way.

Having been a builder all of his adult life, fascinated as he is by grandiose construction projects, Trump may find OBOR more appealing. He may even be tempted to expand OBOR (or some US version of it) beyond Asia into other infrastructure-deprived regions like Africa, Latin America, and Central America.

Widespread infrastructure investment, ideally led by the private sector, would not only benefit the world’s poor but also the US economy. Increased prosperity in the developing world will enable more consumers to demand American goods and services.

US engineering, construction and equipment manufacturing companies could win lucrative contracts, and its defence and cyber security companies could help protect critical infrastructure worldwide. With more energy terminals constructed around the world, the US energy industry would enjoy more destinations for its oil, gas and coal.

And with 80pc of people in the developing world lacking access to the web US internet companies can expect many millions of new customers if disconnected communities were linked to the world-wide web via proper infrastructure.

Exactly one year ago during his speech inaugurating the AIIB, President Xi pledged that ‘the door of China’s opening up will never shut and China welcomes all countries to ride on its development.’ At his inauguration next week President Trump, could answer the call.

Centring US-China relations on infrastructure development could fill the vacuum created by the exit of climate, giving the two countries’ leaders a common goal to work toward amidst all their other disagreements.

Such commonality of purpose would help transform the discourse from an adversarial, zero-sum-game one into one more conducive to cooperation. The result would not only be a more connected world where more people can have access to energy, communication, and transportation networks — one generating economic activity, prosperity, and growth — but also a US-China relationship that’s more resilient in the face of the many challenges that will undoubtedly come.

— Foreign Policy/The Washington Post Service

Published in Dawn, Business & Finance weekly, January 16th, 2017

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