Well really no sooner had the G7 at Ise-Shima Summit (May 26th-27th) in Japan concluded, then our attention was redirected to the US-China 8th S&ED (Security and Economic Dialogue) that concluded in Beijing on June 7th.
The annual meeting is a chance to take the temperature once again of US-China relations. The Summit, as the name implies is made up of two tracks – the Strategic Track led by the US Secretary of State, John Kerry and State Councilor Yang Jiechi and each is a special representative to their respective leader. Meanwhile the Economic Track was led by US Treasury Secretary Jacob Lew and Chinese Vice Premier Wang Yang.
Even a quick read of the two communiques reveals just how different the tracks are. The Strategic Dialogue took some 19 pages to report on its collective efforts, while the Economic Track took a mere 3.
It is clear that the US came at the economic discussions urging changes and reforms to Chinese economic behavior and bringing the complaints and difficulties that US businesses have, and continue to face, in China. From the media report, below from the the NYT, it is clear that there is growing frustration in the US business community over the array of regulations that inhibit US business interests in China:
James McGregor, Greater China chairman for communications consultancy APCO Worldwide, who attended a Tuesday event for executives with senior U.S. and Chinese officials, said executives were blunt in stressing how negative things were becoming for foreign companies in China.
It is also apparent that US officials continue to press China on market reform and urge it to transition to a more consumer-based model. Also, obviously US officials, most likely with various congressmen’s words ringing in their ears continue to fear Chinese renminbi manipulation.
The United States secured a commitment from China to continue market oriented exchange rate reform that allows for two-way flexibility and to refrain from competitive devaluation. Since June 2010, the RMB has appreciated 24 percent on an inflation-adjusted, trade-weighted basis. Building on the significant progress made to date, the Administration will continue to push for exchange rate reform and transparency as priorities in its bilateral engagement with China.
This statement was followed by a reminder that China had committed to avoid competitive valuations.
China committed to continue market-oriented exchange rate reform, allowing for two-way flexibility of the RMB, and stressed that there is no basis for sustained depreciation of the RMB. … China also reaffirmed its G20 commitments to avoid competitive devaluation and not target the exchange rate for competitive purposes. These exchange rate commitments are vital in leveling the playing field for American exports, workers, and firms, and promoting China’s transition to consumption led growth
Presumably this statement was to take the place of any joint and new commitment and to at least say something about currencies, that remains a focus of attention with the US Congress. But the communique is sprinkled with these confirmations and reminders of things previously said. But agreements do take time and meanwhile the communique signals continued interest in the subjects identified.
While the Economic Track communique seems to be a filled with US ‘asks’ and occasional Chinese gives, the Strategic Track communique is of a wholly different character. This communique reveals an extensive web of relationships, agreements, working groups, forum – you name it. The S&ED, or at least the Strategic Track, reveals a classic instance of what I have described in the past as the ‘Iceberg Theory of Global Governance’. Back in 2011 I identified this ‘Iceberg Theory’ framing and described it as a basic feature of modern global summit. This has been true especially among the Informals. The Iceberg Theory describes the mechanics of global governance:
It is frequently forgotten that the Gx system – most notably the G20 Leaders Summit – is not just about leaders. In fact there is a fair complement of personal representatives, ministers, other officials, IFIs and other IOs plus global regulators that make the Gx system work – or not.
And the Strategic Track communique early points to a number of bilateral high‑level exchanges such as the Strategic & Economic Dialogue, the Consultation on People‑to‑People Exchange, the Joint Commission on Commerce and Trade, and the High‑Level Dialogue on Cybercrime and Related Issues . But this but the ‘higher’ level joint instruments. The actual number of continuing forum, working groups etc., joint continuing conferences, forum is rather breath taking. Look at the subjects that officials are engaged in and identified in the communique:
- military-to-military relations
- confidence building measures
- strategic security dialogue
- cyber security
- nonproliferation
- anti-corruption and combatting international bribery
- cooperation on anti-corruption in the G20 and APEC
- law enforcement cooperation
- legal advisers consultation
- disability rights
- nuclear security
- commodity identification training for nonproliferation export control
- combatting the smuggling of nuclear materials
- nuclear forensics analysis
- customs cooperation on supply chain security and facilitation
- customs law enforcement
- container security initiative
- cooperation on joint validation and AEO mutual recognition
- emergency management
- the Korean Peninsula
- Afghanistan
- Sudan and South Sudan
- Iran
- Syria
- Iraq
- counterterrorism
- Asia-Pacific
- peacekeeping
- United Nations
- humanitarian assistance and disaster response
- global development
- 2030 agenda for sustainable development
- responsible mineral supply chain
- wildlife trafficking
- consultation on international economic affairs
- commitment to working toward full implementation of the Paris Agreement
- climate change working group
- achieving a successful outcome on HFCs under the Montreal Protocol
- enhancing the collaboration in ICAO
- CCWG (climate change working group) heavy-duty and other vehicles
- CCWG smart grids
- clean, efficient and secure electricity production and transmission
- CCWG carbon capture use and storage (CCUS)
- CCWG energy efficiency in buildings and industry
- CCWG collecting and managing greenhouse gas (GHG) data
- CCWG climate change and forests
- industry boiler energy efficiency
- CCWG climate-smart/low-carbon cities
- CCWG power consumption, demand and competition
- green ports and vessels initiative
- clean energy research center
- renewable energy partnership
- strategic petroleum reserves
- energy security
- civil nuclear energy R&D
- nuclear safety
- peaceful uses of nuclear technologies
- peaceful nuclear cooperation
- shale gas training program, phase II
- energy regulation cooperation
- energy cooperation program combatting illegal logging and associated trade
- forest health management
- air quality
- water quality
- management of chemicals
- hazardous material safe storage and transportation
- management of waste and contaminated sites
- enforcement of environment laws
- environment laws and institutions
- parks management
- nature conservation
- green infrastructure reverse trade missions
- global oceans
- sustainable fishing, and illegal, unreported, and unregulated fishing
- marine litter prevention and reduction
- marine protected areas
- ocean observation
- maritime law enforcement
- maritime safety and security
- law of the sea and polar issues
- aviation cooperation cooperation program
- aviation technical assistance workshops
- aviation security
- transportation forum
- freight rail reverse trade missions
- space security
- civil space
- public health capacity building in Africa
- global health security
- healthcare reform
- smoke-free workplaces
- health science and technology
- climate science and greenhouse gas monitoring
- severe weather monitoring
- food security
- agriculture and food partnership
- strategic agricultural science cooperation
- public-private cooperation in precision agriculture
- metrology and standard forum
- ecopartnerships
- sub-national legislatures cooperation forum
- sister cities conference
- ten-year framework on energy and environmental cooperation
- joint working group on environmental research
- joint committee on environmental cooperation
- joint working group of the protocol on cooperation in the field of marine and fishery science and technology
- joint working group on environmental research
- joint committee on environmental cooperation
- joint working group of the protocol on cooperation in the field of marine and fishery science and technology
- joint commission meeting on science and technology cooperation
- energy efficiency forum
- Chinese Academy of Sciences-Department of Energy joint coordinating committee
- oil and gas industry forum
- clean coal industry forum
- fossil energy protocol
- data security and user’s personal information protection dialogue
- joint working group on US-China agricultural science and technology cooperation
Now some mark but continuing collaborative efforts but others identify the movement of the yardsticks on a subject. What we have is a thick web of intergovernmental and nongovernmental efforts. This is the real foundation of summitry and while there is an evident emphasis on the leaders and what they ratify or signal, the work of this critical joint government goes on.
This is the contemporary stuff of global collaboration.
Image Credit: Xinhua