Talks still possible but not on US terms

Dispute should prompt China to deepen reform

Zhang Monan, deputy director of and a research fellow at the Institute of European and American Studies, China Center for International Economic Exchanges

The Sino-US relationship has entered a phase where even the inking of a trade agreement may leave the fundamental issue of widening conflicts on core interests unresolved, although given the current uncertainties, even a short-term agreement is unlikely to be signed. Yet one thing is for sure, the US is likely to continue using the "maximum pressure" approach in the later rounds of talks not only on trade, but also on financial and high-tech sectors.

Washington still lacks a clear China policy, although US domestic politics has entered a new period of adjustments and the Democrats and Republicans seem to agree on taking a tough stance against China, which is unusual for the perennially quarrelling parties.

Under such circumstances, China needs to adjust its strategy toward the US. As the US looks for more short-term gains, China should not lose track of its long-term objectives, even though some believe such an adjustment of strategy and exploration of the boundaries of each other's core interests could make it more difficult to achieve a result in the trade talks.

Most importantly, China should seize this opportunity to deepen reform and opening-up as it had done in the wake of the 1997 Asian financial crisis and the 2008 global financial crisis. For instance, it should ensure short-term policy readjustments lead to the formation of comprehensive incentive mechanisms, in order to further deepen reforms.