Unless America and China assume joint leadership for global economic recovery, reconstruction of the post-coronavirus world could take years, with unimaginable consequences for the world’s 7.8 billion inhabitants, including unprecedented levels of global unemployment, famine, and even war.
In the pre-coronavirus world, suggestions for a partnership between the world’s two superpowers would have been met with gales of laughter. But now, despite the two leaders’ daggers drawn posture, hundreds of doctors and scientists in the U.S. and China are already working together on clinical trials of potential coronavirus drugs; and one of China’s biggest property developers has funded a five-year $115 million project between Harvard University and the Guangzhou Institute for Respiratory Health.
But the window of opportunity for acting together is short. The Covid-19 pandemic continues to decimate the world’s economies. Unemployment in the U.S. now tops 22 million, a level not seen since the great-depression of the nineteen-thirties; while China’s economy stopped growing for the first time in four decades as half a million small and mid-size businesses, the backbone of China’s economy closed; and Italy, the second largest manufacturing economy in the EU watches helplessly as the pandemic axe dismembers its economy. Were India and Africa were unable to control the coronavirus the results could be catastrophic.
So, are there issues of such import and mutual benefit that they would convince President’s Trump and Xi Jinping to work together? I believe there are. My two cents worth below.
The two superpowers could leverage China’s vast, trillion-dollar global infrastructure project—the Belt and Road Initiative or BRI, that aims to build infrastructure in over 120 countries of Asia, Europe, and Africa. The BRI is designed to act as a conveyer belt to transmit Chinese investment and technology into these countries to improve their economies, and to link them to China. But now Covid-19 has crimped China’s ability to sustain BRI’s trillion-dollar underwriting tab and President Xi Jinping’s grandiose vision is at risk.
On the other hand, the United States, which has been searching for a counter to BRI, has settled on an initiative called the Blue Dot Network or BDN. The idea behind the BDN is the U.S. would rigorously vet infrastructure project applications in developing countries to ensure high levels of transparency, sustainability, and economic viability before seeding them with startup funds from the U.S. Government. The BDN hallmark would then inspire confidence in the projects to attract private U.S. funding.
But the relatively paltry BDN budget of $60 billion (versus China’s 1000 billion or trillion-dollar BRI budget) and developing countries’ skepticism of Western (read U.S.) dominated standards for infrastructure construction have hobbled the BDN.
If the U.S. and China could find a way to combine BRI and the BDN it would ensure a stream of dollars from private U.S. companies into BRI and ensure its projects remain on track to create jobs and raise living standards around the world. The compromises required by America and China to weld BRI and BDN together would ensure the U.S. gets a seat at the table to influence the adoption of standards for starting and executing BRI projects.
Here’s another idea: The U.S. military is especially qualified to help fight natural disasters. In 2004, for instance, 3,000 U.S. military personnel were deployed to West Africa to help combat a deadly Ebola epidemic. Their work included constructing 17 hospitals, field training, and deploying assistance by air to remote villages. Today the U.S. military is being used to rapidly set up hospitals in U.S. cities to handle the burgeoning coronavirus caseload. The People’s Liberation Army meanwhile seems determined to play a more active global role in peace-keeping projects around the world.
Coronavirus-aid projects delivered to less-off countries through joint U.S.-China military teams would double what the U.S. and China could do on their own. And help establish the military to military connections that the U.S. has tried to foster with China for some time. A working relationship between the two nations’ militaries might even lead to a more stable geopolitical balance of power.
The Chinese word for crisis contains two characters. One signals danger, the other opportunity. Presidents Trump and Xi Jinping should boldly find a way to join forces to convert the deadly Covid-19 crisis into an opportunity that would supercharge global economic recovery and might well change the course of the 21st Century. It is a once in a lifetime opportunity that ought not to be squandered.