Message from the Executive Director of the Washington State China Relations Council

Dear WSCRC Members and Friends,

I am extremely concerned about the deteriorating state of U.S.-China relations, which are widely acknowledged to be at their lowest point since the establishment of diplomatic relations 41 years ago. Our state has benefitted greatly from expanding trade and cultural relations with China and many of our members have roots in China but now call Washington home. Now, almost daily, we are confronted with new actions on the part of the U.S. or Chinese government that ratchet up tensions between our two countries. This relationship has devolved into acrimony, distrust, and a growing bipartisan clamor in the U.S. for economic “decoupling.”

Needless to say, we are in unprecedented times.

The Washington State China Relations Council strives to promote and maintain a rational and well researched dialogue about the benefits of the State’s relationship with China. In 2019, Washington exported $9.0 billion in goods to China (or $4.7 billion excluding soybeans and other pass-through goods), while imports from that country totaled approximately 30% of the inbound cargoes through our ports. Through the first six months of 2020, our exports by value are down nearly 40% compared with the same period in 2019. In addition to the goods trade, Washington companies sell software, architectural services, legal, and other services to China. Students from China contribute to the local economy with their purchases of tuition, books, housing, food, and other services.

The benefits of a healthy relationship with China extend beyond simple economics. The two-way flow of people and ideas from country to country creates bonds of friendship and understanding. While the pandemic has temporarily halted such interactions, the current state of U.S.-China relations almost guarantees that tourists and other visitors from China will not return to our region in the numbers previously experienced.

We are particularly concerned with actions taken by the U.S. government that only exacerbate the situation. A case in point is the sudden closing of the Chinese Consulate in Houston, which came as a surprise to us and is something we would call an over-reaction. In diplomatic spats in the past, members of the consular corps would be given 72 hours to leave the country. Why was this practice not used to expel the supposed “bad actors” instead of the much more belligerent action of shutting down the entire consular operations which led to the loss of the U.S. Consulate in Chengdu?

While IP theft is real and an issue that must be addressed, I have concern that some of the FBI operations against people of Chinese descent are being enacted before full due diligence is performed, which unnecessarily harms the lives and careers of some of the targeted individuals.

China has certainly not made our job of promoting better relations between our two countries any easier, as their recent actions in Hong Kong, their policies in Xinjiang, and their overreach in recent territorial disputes have illustrated. It does become clearer to us that China’s world view and the measures that they will use to support it are often at odds with our values.

President George H. W. Bush noted that the U.S.-China Relationship is the most important bilateral relationship in the world. We could not agree more, and we urge political leaders on both sides of the Pacific to resume a realistic and rational dialogue to address mutual as well as global problems. Looking beyond the domestic issues facing the two countries, urgent cooperation is needed among the superpowers to address global problems such as the pandemic and climate change.

The Council recognizes that the U.S. election cycle essentially precludes substantial progress in the short term. However, the Council believes that measures could be implemented in the U.S. to restore mutual respect which will hopefully prepare the field for improved cooperation in 2021.

Specifically, we call on all parties in the U.S. to halt the demonization of China. Whether the issue is Covid-19, IP theft, or Huawei we believe that clear-eyed analysis of the issues at hand should replace knee jerk reactions. We support work on both sides to meet the targets of the Phase 1 trade agreement and to prepare the ground for further talks. In addition, we call on both sides to refrain from taking actions to harm diplomatic relations and dialogue. While this list is rather short, a little bit of mutual respect and an attempt at mutual understanding could go a long way to ease the current tensions.

While the Council is not directly engaged in many of these national level issues, there is much we can still do. Firstly, we are and will continue to be a voice of reason in a period of heightened tension, acrimony, and uncertainty. We will continue to serve as a forum and platform for objective discussion and analysis of the key issues shaping this relationship. We will also be an advocate for the interests of our members, and to ceaselessly oppose the wrongful targeting of citizens of Chinese descent and upstanding members of our community. Secondly, the Council will continue to convene members of the community, including businesses, nonprofits, local government, educational institutions, and Congressional leaders, to be a leading and reliable source of information and expertise on Washington’s relationship with China. Thirdly, we will continue to work with our partners in the community and explore and support new business opportunities in China for Washington firms.

While the current U.S.-China relationship is severely strained, we at the Council take the long view. It is our fervent belief that the health of this relationship is the linchpin of global security and prosperity.