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his city's independence from the looming Sino-US trade war. Garcetti stated that Los
Angeles and China “have closely integrated economies, closely integrated cultures and
closely integrated geography. . . . We hope to be the leading Chinese city in America
for investment, tourism and students.”17

Sometimes federalism, in the form of local leaders' independent China policies,
is a good thing and may, during times of upheaval in Washington, DC, help to
offset unwise national policies. But if US-China relations continue on their current
downward trajectory, there will be an increased danger that independent state and
municipal China policies will sometimes conflict with national interest and hinder the
United States in its competition with China to shape global norms
and practices. As China's wealth and ambition grow and as Beijing is becoming more
adept at turning local American “China interests” into Chinese leverage, sub-national
American governmental entities that formed their China policies in the Era of
Engagement must become mindful that a new era will require them to develop new
strategies for a new Era of Competition.

Conclusion and Recommendations

The following practices can foster the kind of constructive vigilance that local
governments will need to exercise in their continued cooperation with China.

Promote Transparency

Sub-national governments should:

• Not have secret agreements with Chinese entities, including foundations,
corporations, or individuals. All MOUs and contracts should be transparent
and public. All cooperative proposals should be subject to public hearings.
All potential projects should receive the same due diligence that partnerships
with American entities would demand. No exceptions to American laws or best
practices should be made to placate allegedly “Chinese” customs. And in no way
should China be allowed to have a veto over potential exchanges with other
countries, entities, or individuals such as Taiwan or the Dalai Lama.

• Share experiences and concerns with peers through the National Conference of
Mayors, the National Governors Association, the National Council of County
Association Executives, and the National Conference of State Legislatures. Best

State and Local Governments

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