On the eve of President Obama's first China visit, the state of U.S.-Sino relations remains strong. But the road ahead is uncertain and the stakes have never been greater. From the perspective of the businesses the American Chamber of Commerce in China represents—whose success in the world's fastest-growing major market is vital for the U.S. economy—Mr. Obama must make tangible progress on fighting protectionism, widening market access and addressing climate-change issues during and after his visit.
Mr. Obama has built on the positive U.S.-China momentum that President Bush developed later in his presidency. By focusing significant energy on areas of common ground, like cooperation on climate change and stimulus spending, while downplaying third-rail issues like Taiwan and Tibet, Mr. Obama has built up political capital with an initially unsure Beijing.
The goodwill President Obama has been able to develop helps explain why Beijing seems to have given him the benefit of the doubt on trade, especially when he imposed import duties on low-end Chinese tires in September. While Beijing has threatened or started several antidumping investigations against U.S. companies, in general China's response has been restrained. Beijing has largely confined its challenges to the World Trade Organization dispute resolution mechanism. Nonetheless, American companies remain wary in light of recent tough Chinese rhetoric following the preliminary decision by the U.S. to impose duties on Chinese-made steel pipe.
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