U.S. Secretary of State Antony Blinken (left) meets Chinese President Xi Jinping (right) at the Great Hall of the People in Beijing on June 19, 2023.
Lea Millis | afp | beautiful pictures
BEIJING — Foreign Minister Antony Blinken emphasized the importance of economic aspects of the US-China bilateral relationship during his risky trip to Beijing earlier this week.
During Monday’s press conference concluding his visit, Blinken noted a record high trade between the two countries and said the United States is “ready to work with China” in “macroeconomic stability” along with other countries. other areas of mutual interest.
Earlier that day, he met with US businesses in China working in the healthcare, automotive and entertainment sectors, the State Department said. The head of US foreign policy meeting with business cannot be considered one of these trips.
“I especially know when Blinken [scheduled to be] Michael Hart, president of the American Chamber of Commerce in China, told CNBC.
Hart said he did not know what might have changed since then, but noted similar attention to business activity when German Foreign Minister Annalena Baerbock visited Beijing in April.
“It shows that politicians understand a lot about the economic linkages and the importance to political stability between those two economies,” Hart said. “It is very important.”
During his trip to Beijing, Baerbock visited the German company Flender, a gearbox manufacturer, said the German Chamber of Commerce in China.
Chairman Colm Rafferty and Vice President Roberta Lipson attended the meeting with Blinken on behalf of AmCham China. The US State Department led CNBC to Blinken’s press conference on Monday when asked about AmCham China’s comments about not having a meeting with the secretary during his trip scheduled for February. .
symbolic visit
Blinken met Chinese President Xi Jinping on Monday as part of a visit to Beijing, the first visit by a US secretary of state since 2018.
Gabriel Wildau, chief executive officer of consulting firm Teneo, said the most important economic lesson from Blinken’s trip was that it worked out, especially the meeting with Mr. Xi.
“The big fear for investors is that bilateral relations are on an unstoppable downward trajectory,” he said. “Just by signaling that relationships can stop getting worse can the two sides reduce pressure on companies to explore options for decoupling.”
Blinken also met with the Director of the Foreign Affairs Office of the Central Committee of the Communist Party of China Wang Yi, and State Councilor and Foreign Minister Qin Gang.
Challenges for American businesses in China
US-China tensions escalated under the Trump administration. It has focused on the use of tariffs and sanctions in an attempt to resolve longstanding complaints about US companies not being able to access the Chinese market the same way as local companies.
Blinken told reporters at a news conference on Monday that he had heard about the problems facing American companies in China and was eager to grow their local businesses. He described doing business in China as in the best interests of the United States
Growth slows down
Regulatory challenges aside, a more pressing issue for businesses has been the slowing economic growth in China and the US over the past few months.
The US Federal Reserve has aggressively raised interest rates in an effort to contain domestic inflation. China’s central bank this month started cutting interest rates massively to support growth.
Treasury Secretary Yellen is among US officials scheduled to visit Beijing in the near future.
US President Joe Biden said at his meeting with Xi in November, stabilizing the global economy was one of the items the two countries should work together. according to a reading.
On Monday, Blinken listed similar areas of potential cooperation, including climate and economics.
He said the growth of major economies like China was in the interest of the United States and described the economic relationship as “extremely important”.
“But at the same time, as I said, it is not in our interest to provide technology to China that can be used against us,” he said.
The Biden administration has used sanctions and export controls to limit the ability of US businesses to work with Chinese partners on advanced technology such as high-end semiconductors.
Taiwan’s economy
Regarding the Taiwan issue, Blinken also gave economic perspective. He noted that a crisis for the island would likely “create an economic crisis that could literally affect the entire world.”
He pointed out that 50% of commercial container traffic passes through the Taiwan Strait every day and 70% of semiconductors are produced on the island.
Blinken said he has spoken “very clearly” to the Chinese about the growing concerns surrounding Beijing’s recent “provocative actions” – and the “serious consequences” for the world if an crisis around Taiwan escalates.
Beijing claims Taiwan as part of its territory and has always insisted that it is seeking “peaceful reunification” with the democratically self-governing island. The United States recognizes Beijing as the sole government of China but maintains unofficial relations with Taiwan.
Blinken said a basic US understanding is that any differences over Taiwan “will be resolved peacefully.” He reiterated that the United States does not support Taiwan’s independence.
