Managing Sino-American interdependence
BEIJING — Last month’s summit between US President Donald Trump and Chinese President Xi Jinping signaled that the Sino-American relationship is moving from intense confrontation back toward something more stable. Both sides have committed to fostering a “constructive relationship of strategic stability.” Their disagreements have not disappeared, but each has come to realize that continued escalation is costly, dangerous, and unsustainable. Competition must be governed by rules, and disputes must be managed. This judgment rests on sound strategic logic. During the Cold War, the prospect of “mutually assured destruction” prevented the United States and the Soviet Union from engaging in a head-to-head military conflict. Neither side trusted the other, but both understood that there could be no real winner from an escalatory war between nuclear powers. A similar logic applies to the U.S.-China economic relationship. Of course, economic interdependence is not the same as nuclear deterrence, and the potential costs of misjudgments do not rise to the same level. But in a world of
