A Trans-Pacific Partnership

Abstract

This article argues for an improved economic partnership between China and the United States based on nonpolitical, profit-seeking, market, and rule of law–based agreements. We begin by describing the major domestic economic issues that each country is facing, specifically the diverse threats of inflation in China and U.S. government debt. We argue that these substantial obstacles can be best overcome through partnership. As well, we argue that such an arrangement will have the incidental effects of reducing China’s vast income disparity and improving its shaky rule of law. We then describe the current strained relationship between the two nations and argue that these attitudes will be improved through the actions of “agents of change”—young professionals on both sides of the Pacific who study in North America and return to China, building cultural and economic bridges between East and West. We then outline a strategy for partnership, arguing that the United States should allow freer trade with China and should facilitate Chinese direct investment in American assets. We conclude by describing Canada’s potential role in this partnership both as a mediator between the two superpowers and as a source for investment in natural resources.