Success of Reforms Linked to US Ties

If normalization of relations had not occurred in 1979, China's economic development would not have been nearly as rapid

Chi Wang

Chi Wang is president of the US-China Policy Foundation, which he co-founded in 1995. Dr. Wang came to the United States in April 1949 and spent nearly 50 years working for the Library of Congress, ultimately serving as the head of the Chinese and Korean Section. In 1972, Dr. Wang was sent to China by the US government after Nixon's historic visit to initiate cultural and educational exchange programs. Dr. Wang began teaching at Georgetown and many other universities in the 1960s.

When thinking about China, one of the first things that comes to mind is its present day economic might and the rapid economic development that led to it. Words like “unprecedented”,“miraculous”, and “historic” are often used to describe China's decades of rapid growth. Countless articles and researchers have delved into China's development to try to understand how China grew so rapidly and in a manner decidedly different from past examples. To understand this rapid development, it is important to understand China's history and the circumstances when the reforms first began.

My long life has allowed me to live through many of China's major changes. I was a boy in Beijing when the Japanese invaded and I celebrated the victory over Japan when years of war and occupation finally came to an end. We stood in the streets and welcomed the US troops who had fought with us against the Japanese. That image stuck with me, inspiring me to go to the US for school.

The US-China relationship could have easily deteriorated further. Both sides, however, were experiencing the heavy toll of conflict. China began to wonder if the relationship with the Soviet Union was truly beneficial and the US began to question if China and the Soviet Union should really be treated the same. And then, Henry Kissinger went to China and President Nixon soon followed. This marked a new beginning, not just for US-China relations, but for the future of China as a whole.

I had the opportunity to return to China in 1972 after Nixon's trip to establish cultural and educational exchanges on behalf of the US government. It was this trip that truly opened my eyes to what China had been experiencing while I was living in the US. With the Cold War underway, China was isolated from the West and I had been cut off from my family. I heard reports, of course, and did my best to stay informed about the country of my birth, but nothing could have prepared me for finally seeing behind the so-called bamboo curtain. I was shocked by how much China had changed.

While US-led efforts such as the Marshall Plan helped Western Europe get back on its feet after the ravages of war, China continued to face internal strife. And then, as the world was divided into sides, China was cut off from the economic engagement and assistance that had allowed other countries to recover and thrive. Instead, China was left with a Soviet Union focused on maintaining its own power and on its conflict with the US. China's own attempts to improve its economy fell short and only led to famine and more domestic turmoil.

It was clear from my visit that China had suffered greatly in the preceding decades. Many of the academics and university department heads I met during my trip had studied in the US prior to the Cold War and knew how far behind China was. They urged me to encourage the US leadership to engage with China and promote education and exchanges. They were confident that, with the support of countries like the US, the situation in China would vastly improve. The Chinese realized it was time for a change, time to step away from the Soviet Union and start engaging with the world.

When Deng Xiaoping came to power, he had one primary objective — improve China's economy and lift its people out of poverty. It was a noble goal, one that China desperately needed. Having spent time living in France, Deng was more familiar with other countries and willing to engage with other countries in order to better his own. He had the foresight to envision a better and stronger China.

But how could a country make such a huge change so quickly? The short answer is that circumstances aligned perfectly for China's reform and opening-up to be a success. China wanted and needed to begin participating in international trade, and Deng was the right person for the job. He was able to institute the necessary policy actions to make this change happen. Deng's foreign policy mantra of “keeping a low profile while biding time” allowed China to gather strength and focus on domestic growth without creating tension or unnecessary conflict with

other countries.

I had the great fortune of being able to speak with Deng when he visited the US in January 1979. Although our conversation was brief, it made a great impression on me. During our short talk, Deng asked what the purpose of revolution was and told me it was to make the lives of the Chinese people better. It was clear from his comments that he was determined to improve the lives of his people and that he was in the US to help make that happen.

And that's exactly what he did. The US-China Trade Relations Agreement was signed, spurring bilateral trade. And in 1980, Deng established the first special economic zone in Shenzhen, encouraging US and other foreign investment and serving as a model for further economic development.

As China's domestic policies continued to promote economic development, China's economy became increasingly globalized. China joined international and regional economic organizations such as the World Bank, the International Monetary Fund and the Asian Development Bank. In 2000, China was granted permanent normal trade relations with the US, and in 2001, China entered the World Trade Organization.

By 2003, China's imports and exports as a percentage of GDP reached over 50 percent. By 2006, China was the US's second-largest trading partner. And by 2008, China was hosting the Summer Olympics in Beijing, showing the whole world how far it had come.

As China embraces its role as a world power and regional leader, it is important to remember how far the country has come.The Chinese today should not forget that what they have now is much greater than what previous generations had. They should appreciate the hard work, dedication and changes that helped lead China to this new, prosperous place.

This is not, however, all China should remember about this important anniversary. Today, the US and China are in the middle of a trade conflict. There is heightened tension and mistrust and an overwhelming unwillingness to cooperate or compromise. The climate between the two countries offers a stark contrast to 40 years ago when Deng met President Jimmy Carter and began not only an official diplomatic relationship but also a strong economic relationship that greatly benefited both sides. The significance and impact of these positive bilateral ties seem to have been forgotten today.

What would have happened if the US and China treated each other then as they do now? During that pivotal time in history, leaders in both China and the US were optimistic about what stronger ties could bring. The differences between the US and China that are discussed today — such as our forms of governments, history and culture — still existed then. But both sides were willing to see beyond these differences to the positive benefits of cooperation, globalization and trade. They knew that increased global trade benefits all parties involved and that we can work together to help both countries, and the world as a whole, thrive.

As people in China remember these decades of progress, they should also acknowledge that these changes did not happen in a vacuum. They benefited from the support and from economic ties with US and other countries. And as US leaders discuss the pitfalls of trade with China, they should recognize the economic benefits as well; they should look back at the brave decision US and Chinese leaders made to engage with each other and ask themselves if the current tensions are truly in their best interest.

President Carter spent time in China when he served in the US Navy. Many of his key advisors, likewise, had their own personal experiences of China. This gave them an ability to negotiate with, and relate to, Chinese officials even though many historical and cultural differences between the two countries often made it difficult. This background knowledge and ability to wade through disagreements and find common ground is largely missing in the US administration today. This is something that definitely needs to be fixed. The US-China relationship is simply too important and complex to attack blindly.

At nearly 90, I have had the great privilege of playing a small part in encouraging better US-China relations. It was the work of leaders like Nixon, Deng and Carter that gave me hope and inspired me to continue my efforts. I will never forget their many contributions. We should learn from the pivotal events of 40 years ago, the importance of international trade and bilateral cooperation.

As Carter said in 1979: “Let us pledge together that both the United States and China will exhibit the understanding, patience and persistence which will be needed in order for our new relationship to survive. Our histories and our political and economic systems are vastly different. Let us recognize those differences and make them sources not of fear, but of healthy curiosity; not as a source of divisiveness, but of mutual benefit.”