As the first half of 2015 draws to a close, hope is in the air as the U.S. and China had an opportunity to sit down and review issues where cooperation was possible and share their opinions on issues that have divided the two great powers at the Strategic and Economic Dialogue which was held in Washington D.C. from June 22 - 24, 2015. Prickly topics such as cyber security and disagreement over China’s actions in the South China Sea were certainly at the top of the agenda, but there were also many areas where collaboration was easy, particularly environmental policy. Yet time stops for no man and the two nations had a host of other pressing and urgent issues to deal with outside of the Dialogue during the month. The following summarizes key issue areas emphasized by the U.S. and China during June 2015.

Face-to-Face

Both the United States and China came away from the seventh meeting of the Strategic and Economic Dialogue calling it a success. There was significant agreement particularly in the area of environmental protection with both sides agreeing to work together to achieve a successful global climate agreement, protect the world’s oceans, and advance efforts to combat wildlife tracking. Since the environment appears to have been the area of greatest success, the Strategic and Economic Dialogue could be seen as a precursor to the Paris talks later this year.

The Chinese and American governments were also able to come together on various other issues concerning counter-terrorism, stability in Iraq and Syria, and interestingly the nuclear issues surrounding Iran and North Korea. Although China’s official position on North Korea has not changed, it did call for restraint after the test firing of missiles on June 15th and proclaimed a desire to resume the Six Party Talks. Both China and the U.S. stated that a comprehensive nuclear agreement with Iran during the P5+1 Talks in Vienna is vital to the international non-proliferation regime and to regional stability. Despite numerous agreements, the areas where the possibility of cooperation seemed more remote were glaringly obvious and tensions on several issues continued throughout the month.

Choppy Seas Still Ahead?

China continues to exert its influence over the South China Sea, particularly in the Spratly Islands where it has expanded the construction of numerous facilities. It has rebuffed prominent criticisms, specifically from the U.S. that its land reclamation project or construction efforts on islands in the South China Sea are illegal according to international law. China maintains that both Japan and the U.S. are not parties that should be concerned with the South China Sea issue. The U.S., while continuing to appeal to China for a halt to reclamation, has been reticent about other means of peacefully convincing China to stop its activities in the South China Sea. Several times throughout the annual U.S.-China Strategic and Economic Dialogue, the U.S. called for immediate cessation of reclamation and militarization in the region, in the interest of good neighborliness and regional stability. Both countries agree that the future of bilateral diplomatic relations should rest on peaceful cooperation, but their stances on the South China Sea seem indicative of more conflict to come.

The Japan Factor

Tensions continue to rise over Japan’s changing military posture. China criticized Prime Minister Abe’s attempts to push through an unpopular collective self-defense security bill, as well as the revised U.S.-Japan Defense Cooperation Guidelines, which strengthen elements of collective security. The U.S., on the other hand, welcomed increased military cooperation with Japan in areas such as missile defense, which was incorporated into the revised guidelines. China also criticized Japan’s stance on China’s activities in the South China Sea, seeing Japan’s position as a way to divert attention away from the Senkaku/Diaoyudao Islands and calling once again for the U.S. and Japan to stop meddling in disputes they are not party to. Yet also noticeable this month was China’s toned down rhetoric on Japan’s historical aggression and attempts to revise history, perhaps indicating a Chinese desire to improve Sino-Japanese relations.

Seeking Cooperation on Cyber Snooping

Tensions between the U.S. and China have been increasing due to suspected spying and cyber attacks from both sides respectively, although both have voiced a commitment for closer security ties. Many cyber security experts in the U.S. cite Chinese government affiliates as being responsible for the recent OPM hack, despite the fact that both the U.S. and Chinese governments are quick to avoid outright labeling China as being responsible. They are, however, willing to acknowledge and talk about those differences based on military and security issues, including those based on cyber security, as evidenced by the Strategic and Economic Dialogue. Still, the Chinese have voiced concern about possible U.S. espionage attempts. Moreover, neither side has been particularly specific on how to defuse tensions, leaving it ambiguous how the situation will develop in the future.

The Back and Forth Continues

On the eve of the 26th anniversary of the Tiananmen Square Protests of 1989, the U.S. released a statement urging China to “uphold its international commitments to protect human rights.” Throughout June, the U.S. continued to release reports on how the current human rights standards are not up-to-par with China’s political and economic influence on the global stage, citing the suppression of the Hong Kong democratic protests and the repression of the ethnically Tibetan population as examples. China responded by stating that many of these claims of the U.S. were ungrounded and inaccurate. They also followed up by stating that the U.S. has humanitarian issues of their own as shown by a string of riots that exploded in U.S. cities in response to police brutality.

Time Period: June 1 ~ June 30 

1. U.S. – China Bilateral Relations: The U.S. and China Prepare for and Hold the Security & Economic Dialogue

2. Economic Relations: Both the U.S. and China Welcome Investment in Infrastructure in Asia Despite Differing Opinions on the AIIB and Both Countries Push Forward Their Respective Free-trade Agreements

3. Military and Security Relations: The U.S. Hopes to Cooperate with China on Cyber Attacks; China Responds to U.S. Hacking Allegations and Seeks Military Cooperation

4. Human Rights and Humanitarian Issues: The U.S. Urges China to Adhere to International Norms on Human Rights; China Responds in Kind to Criticism from the U.S.

5. Climate Change and Environmental Issues: The U.S. and China Work Together on Environmental Issues during the S&ED

6. Asia Pacific Issues: The U.S. Remains Steadfast with its Rebalancing Policy and Continues to Confirm Alliances; China Continues to be Wary of the Direction of Japan and Speaks of Cooperation in the Region

7. Korean Peninsula: Both Countries Continue to Monitor the Situation in North Korea and Improve Cooperation with South Korea

8. Middle East and Africa Issues: The U.S. and China Continue Crisis Management and Negotiations with Iran

9. Sovereignty and Territorial Disputes: The U.S. Continues to Urge China to Halt Reclamation Work in the South China Sea; China Reiterates its Claims in the South China Sea and Demands the U.S. Stay Out of the Discussion Between Claimants