Candidates' tough talk puts U.S.-China relationship at risk

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The presidential candidates took a break from Middle East policy in Monday night's debate to deliver some tough talk to China. "That's why on day one, I will label them a currency manipulator--which allows us to apply tariffs where they are taking jobs," said Governor Mitt Romney. "They're stealing our intellectual property, our patents. our designs, our technology, hacking into our computers, counterfeiting our goods." Both candidates have bashed China on the campaign trail, but they displayed more nuance on Monday--emphasizing the importance of the U.S.-China relationship. "We can be a partner with China." said Romney. "We don't have to be an adversary. We can work with them. We can collaborate with them, if they're willing to be responsible." President Obama echoed his opponent's position. "We believe China can be a partner,” said Obama. But we're also sending a very clear signal that America is a Pacific power, that we are going to have a presence there." Some China watchers say this talk is destructive. Thomas McLain is the Chairman of the Asia Society-Southern California--a non-profit that promotes partnerships between Southern California and Asia. He says that while troubling, the tough talk is politics as usual. "Bottom line: end of the election, our economic relationship with China is one of the most important, and all that talk will be forgotten regardless of who ends up being our president." This is because China is already a big player in the U.S. economy, certainly in terms of trade, but also in its growing investment in U.S. businesses. As China’s economy slows--it’s growing at 7.5 percent per year compared with double digit growth in the past--it's pumping more and more money into the U.S. This year, Chinese companies have invested a record $6.3 billion in U.S. projects. California boasts more investment deals with China than any other state, but comes in fifth in terms of dollar amount. “We think that this is just the beginning of what could be a tsunami of investment coming from China," said McLain, who hopes to see some of that money flow into Southern California’s economy. L.A. County is taking steps to open its doors to Chinese investors, even hosting investment mission trips to China, according to Ferdinando Guerra, an International economist for the Los Angeles Economic Development Corporation. "We've been marketing L.A. County very aggressively to China for the past five years, and it's paid dividends for sure," said Guerra, who authored a report called “Growing Together,” emphasizing the importance of the county’s relationship with China. Guerra touts companies like China Mobile, China Air and electric car maker BYD, as examples of those that have helped create jobs for angelenos. Beijing Office building photo: credit Molly Gray