U.S. President Donald Trump, right, and Chinese President Xi Jinping walk past the People’s Liberation Army during a welcome ceremony outside the Great Hall of the People in Beijing, China, Thursday, Nov. 9, 2017.
Shen Qilai | Bloomberg | Getty Images
President Xi Jinping sent a strong signal this week that Beijing is ready to work with U.S. President-elect Donald Trump to resolve trade disputes amid the risk of a potential trade war.
exist Letter to the U.S.-China Business Council On Thursday, Xi Jinping said both sides should “choose dialogue over confrontation, and win-win cooperation over zero-sum game,” while reaffirming his commitment to opening up China’s market to foreign companies, including U.S. companies.
The remarks echoed remarks he made at a conference Meeting with visiting manager on Tuesday “There will be no winners in tariff wars, trade wars, and technology wars,” he said in a speech to major international economic organizations, according to CNBC’s Chinese translation of his speech. Xi Jinping called on both sides to maintain dialogue and manage differences.
Kenneth Jarrett, a senior adviser at the Albright Stonebridge Group, said the flurry of messages from Beijing reflected “a sense of anxiety” and that “the proposals were framed by a appeared in a very public way.”
Jarrett added: “This may mean that the Chinese authorities lack access to the new Trump team…Beijing sees political benefits in projecting a public image that is willing to cooperate with the new U.S. administration.”
Trade war looms
Shen Meng, a director at Beijing-based boutique investment bank Chanson & Co., said Trump’s “America First” policy stance poses a “huge threat” to Chinese policymakers, who are already facing a resurgence. A daunting task for a struggling economy.
Trump, who will be inaugurated in January Vows to impose a 10% tariff on all Chinese goods imported into the United States. During the campaign, Trump threatened to impose tariffs of more than 60% on China.
Earlier this month, the Joe Biden administration Announcing broader restrictions on U.S. exports Provide advanced memory chips and chip manufacturing machinery to Chinese companies. The next day, Beijing responded Ban on export of several rare materials Used in semiconductor and military applications.
“China has made it clear that despite its commitment to growth and constructive trade relations, it will not back down even in the face of pressure from the United States,” said Daniel Balazs, a researcher at the S. S. S. S. S. S. School of International Studies.
Earlier this week, China’s market regulator Announcing the launch of antitrust investigation Enter the US chip giant Nvidia. The company has been banned from shipping its most advanced chips to China, but it still sells less advanced chips and processors to Chinese companies 15% of its revenue in the October quarter.
However, experts say the two sides are more likely to try to negotiate a deal rather than impose high tariffs.
Sam Radwan, president of Enhancement International, told CNBC that “some tariffs may be introduced,” but they will likely be “closely coordinated and not sudden, large-scale or disruptive.”
Exports have been a rare bright spot in China’s faltering economy as companies rushed to ship to the United States before higher tariffs took effect, but they will also face a slowdown once stricter tariffs are implemented.
President Xi reiterated on Tuesday that he had “Confident” to achieve This year’s growth target calls the country “the world’s largest engine of economic growth.”
Show kindness but don’t surrender
Earlier this week, CBS reported that Trump has invited China’s leader will attend next month’s inauguration ceremony.
Jian Dao, a senior fellow at the American Enterprise Institute, said Beijing was trying to avoid “Xi Jinping appearing unfriendly by not attending the inauguration.”
In a darker scenario where escalation does occur, Beijing could point to these early statements to signal to the rest of the world that Washington is a party that refuses to cooperate and compromise.
Gabriel Wildau
Teneo Managing Director
According to CBS, there is no precedent for a Chinese leader to attend a U.S. inauguration ceremony, which is usually witnessed by the Chinese ambassador.
Spokesperson of the Chinese Ministry of Foreign Affairs The Ministry of Commerce told reporters At Thursday’s regular briefing, China has been maintaining close communication with the United States and is willing to maintain communication with the incoming economic and trade officials of the Trump administration.
Teneo managing director Gabriel Wildau said that while the Chinese government is trying to show a willingness to negotiate with the incoming Trump administration, it does not “necessarily indicate that China is willing to do what Trump is seeking.” That kind of concession”.
Scissors said one example of such a concession that China could make would be a commitment to tighter regulation of the fentanyl trade.
“In a darker scenario where escalation does occur, Beijing may use these early statements to signal to the rest of the world that Washington is a party that refuses to cooperate and compromise,” Wildau added.
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