China Calls for Stability in U.S.-China Trade Relations
China’s Ministry of Commerce has emphasized the importance of restoring stability in U.S.-China trade relations. The concept of “de-risking” has been popularized by officials from the U.S. and EU as a strategy to diversify their countries’ dependence on China, rather than completely disconnecting. Shu Jueting, spokesperson for the Ministry of Commerce, stated that returning to the consensus agreed upon by the heads of state of both countries during a meeting in Bali, Indonesia, is the best way to achieve this stability. This approach would allow bilateral economic trade relations to act as a stabilizing force, boosting business expectations and confidence in trade and investment.
“As long as the two countries are not in open military conflict, I expect the U.S. and China will continue to have substantial trade and investment ties…”
Scott Kennedy
Center for Strategic and International Studies
According to Shu, U.S. direct investment in China has increased by 25.5% in the first seven months of this year. The Ministry of Commerce is collaborating with local authorities to implement plans aimed at improving the environment for foreign investment. Scott Kennedy, a senior advisor at the Center for Strategic and International Studies, remarked that despite certain setbacks in the commercial relationship between the two countries, declarations of complete or partial decoupling are inaccurate and premature. Kennedy believes that as long as there is no open military conflict, the U.S. and China will maintain substantial trade and investment ties while also treating each other as geostrategic competitors, which has both commercial and national security benefits.
Some argue that maintaining involvement with China provides the U.S. with insights into its activities and potential leverage. In August, the Biden administration proposed restrictions on U.S. investment in high-end Chinese tech due to national security concerns. During a recent meeting between Chinese Commerce Minister Wang Wentao and U.S. Commerce Secretary Gina Raimondo, the Chinese side emphasized that generalizing national security concerns is detrimental to normal economic trade exchanges. It can disrupt global supply chains, harm business expectations, and hinder economic and trade collaboration.
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Raimondo, after meeting with Wang and other high-level Chinese government officials, expressed the desire to do business with China while emphasizing the need for predictability, due process, and a level playing field. She stated that the U.S. does not intend to decouple from China. The Biden administration’s approach is to “de-risk” by investing in America without trying to undermine China’s economy. China’s Ambassador to the U.S., Xie Feng, blamed U.S. tariffs and export controls for a 14.5% drop in bilateral trade in the first half of the year. Analysts from Eurasia Group noted that the U.S.-China relationship remains competitive and occasionally adversarial, but the Biden administration is striving to manage adversity through a careful approach of targeted escalation and moderated concessions. The upcoming U.S. presidential election cycle may introduce additional volatility in the relationship.
