Another US-China Shanghai Communiqué needed?

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Imtiaz Gul March 15, 2025
The writer heads the independent Centre for Research and Security Studies, Islamabad

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Does the US-China relationship need a Shanghai Communiqué II to navigate its turbulent course?

In February 1972, Richard Nixon, the brooding tactician of realpolitik, and Zhou Enlai, the urbane steward of Mao's revolution, signed the Shanghai Communiqué in the gilded halls of the Jin Jiang Hotel.

Less a love letter than a prenuptial agreement, the document laid the groundwork for a wary US-China détente. Washington, bowing to Beijing's One-China dogma, pledged to support a peaceful resolution for Taiwan - an act of pragmatism as much as a concession. Both sides, peering through the fog of the Cold War, vowed to nurture economic ties and people-to-people exchanges, crafting a blueprint that - fitfully though - endured for decades.

The room where Nixon and Zhou toasted their new relationship still bears witness to that moment in history, its walls adorned with photographs of their cautious embrace.

From diplomatic dance to bare-knuckle brawl

Fast-forward to today, and the tableau is far less amicable. Once a measured dance of mutual benefit, the US-China relationship now resembles a prizefight - rife with tensions over human rights, the Middle East, and the perennial Taiwan issue. The August 2022 visit by then-US House Speaker Nancy Pelosi to Taipei provoked a furious Chinese backlash. More recently, the Biden administration's symbolic invitation to Taiwan's de facto ambassador for the 2025 presidential inauguration has further strained ties.

The economic war, first sparked by Donald Trump's tariff salvos, has since escalated into a full-scale fusillade. On March 4, Trump doubled duties on Chinese imports from 10% to 20%, while imposing 25% tariffs on Mexican and Canadian goods. Beijing, predictably, counterpunched - announcing retaliatory tariffs on March 8 and issuing a rhetorical broadside days earlier through Foreign Ministry spokesman Lin Jian: "Intimidation does not scare us. Bullying does not work on us. Pressuring, coercion, or threats are not the right way of dealing with China. If war is what the U.S. wants - be it a tariff war, a trade war, or any other type of war - we're ready to fight till the end."

The statement, though melodramatic, left no room for misinterpretation: Beijing is ready for prolonged economic warfare.

A diplomatic reset or a doctrinal standoff?

The obstacles to a diplomatic reset are formidable. Under Joe Biden, the CIA's China Mission Center, established in October 2021, signaled a doctrinal shift: China was no longer just a competitor but a strategic rival. Meanwhile, Beijing's Belt and Road Initiative continues its expansion across Africa and Asia, rattling Western nerves.

Trump, never one for subtlety, has doubled down on framing China as a predatory hegemon. His fleeting February 13 call for Beijing and Russia to halve their defence spending in favour of trade was swiftly overshadowed by his tariff hikes on March 4 - underscoring a preference for coercion over conciliation.

Against this backdrop, Wang Yi, China's Foreign Minister, struck a markedly different tone at the Munich Security Conference on February 14, 2025: "We need to prioritize cooperation over confrontation in a fast-moving geopolitical landscape and join hands for an equal and orderly multipolar world."

Yi's remarks coincided with Trump's February 22 memo, which accused China of exploiting US capital to modernise its military and intelligence apparatus - a claim that reinforced Washington's deepening suspicion of Beijing's global ambitions.

A new Shanghai Communiqué?

The question remains: Can Sino-US relations be rescued from the shadow of the CIA's China Mission Center and reset through a multilateral framework anchored in geo-economic cooperation rather than geopolitical confrontation?

Trump's protectionist crusade aims to revive American industry and fill federal coffers, but it collides with an immutable reality: China's industrial dominance, driven by its vast skilled workforce, remains unrivaled. Tariffs alone cannot throttle Beijing's economic momentum - if anything, they risk alienating emerging markets across Africa, Asia and South America, where China's influence is burgeoning.

Yi underscored this at Munich: "China will be a factor of certainty in this multipolar system, a steadfast constructive force in a changing world."

A new Shanghai Communiqué could, in theory, redirect both powers toward geo-economic harmony, sidelining the zero-sum logic of geopolitical brinkmanship. But for such a détente to materialise, Trump would have to abandon his unilateralist instincts - an unlikely prospect for a leader who equates multilateralism with capitulation.

The original communiqué succeeded because both sides recognised their limits. Today's impasse is fueled by their rejection. Nixon, for all his flaws, understood the virtue of strategic modesty. Trump, by contrast, seems intent on proving that tariffs can bend history - an audacious, yet brittle, hypothesis.

So, does the US-China rift demand a Shanghai Communiqué II? Perhaps. But without a willingness to trade hubris for the handshake, the photographs at the Jin Jiang Hotel may remain relics of a bygone thaw - not harbingers of a new dawn.

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