China-US Relations After the Biden-Xi Summit: Beyond Stabilization

China may be in a middle-income trap as the Chinese Communist Party fears needed economic reforms would be politically destabilizing. Chinese troops violently put down a peaceful student-led protest in Beijing’s Tiananmen Square. Like the administration before him, US President Ronald Reagan manages to bolster ties with both sides of the Taiwan Straits. He issues the Six Assurances to Taiwan, which includes pledges to not mediate between both Chinas, honour the Taiwan Relations Act and have no plans to stop arms sales to Taipei. Later, Reagan’s zeal to contain an expansionist Soviet Union – then in the midst of its invasion of Afghanistan – sees him sign a third joint communique with China, reaffirming the US’ adherence to the One China Policy and increasing intelligence sharing between the two.

China’s human rights abuses, especially in Hong Kong and Xinjiang, border aggressiveness, and “wolf warrior” diplomacy, combined with the Trump administration’s legacy and the ongoing pandemic, have left bilateral relations at a nadir. The emerging regional order in West Asia will have wide-ranging implications for global security. The Biden administration has begun re-engaging Iran on the nuclear dossier, an initiative staunchly opposed by Israel, while also taking a harder line on Saudi Arabia’s intervention in Yemen. Meanwhile, key regional actors, including Qatar, Iraq, and Oman, have engaged in backchannel efforts to bring Iran and Saudi Arabia to the negotiating table.

  1. China may be in a middle-income trap as the Chinese Communist Party fears needed economic reforms would be politically destabilizing.
  2. He also urged the US to respect China’s territorial sovereignty in the South China Sea, emphasizing the importance of careful actions to maintain regional peace, stability, and the overall China-US relationship.
  3. The concern is debt, declining growth and productivity, energy shortages, and demographic decline reflect an outdated economic model.
  4. In a speech on Tuesday, May 10, President Joe Biden stated that he would consider removing tariffs on Chinese goods in an effort to reduce the price of goods in the US.

Electricity demand in the European Union declined for the second consecutive year in 2023, even though energy prices fell from record highs. Following a 3.1% drop in 2022, the 3.2% year-on-year decline in EU demand in 2023 meant https://bigbostrade.com/ that it dropped to levels last seen two decades ago. As in 2022, weaker consumption in the industrial sector was the main factor that reduced electricity demand, as energy prices came down but remained above pre-pandemic levels.

Although the theory that engagement with China would lead to its democratic transformation proved erroneous, the institutionalist argument for engagement has stronger support. The biggest factor working in the United States’ favor is the strength of the multilateral institutions – such as the United Nations, World Bank, and World Trade Organization – that the U.S. itself helped to create. These organizations enhance collaboration, provide collective goods, maintain order, and strengthen the international rule of law. The most important thing that the U.S. can do in its relationship with China is to both strengthen these institutions and make sure China is included.

Trump Affirms One-China Policy After Raising Doubts

On Thursday, President Biden and President Xi held a two-hour call, in which they discussed cooperation between the two countries and issues surrounding Taiwan and Ukraine, among other matters. On Sunday, Blinken held “candid, substantive, and constructive talks” with Chinese Foreign Minister Qin Gang. According to the readout released by the Chinese foreign ministry, Qin Gang noted that the China-US relationship was at “the lowest point since its establishment” and famous investors that “this does not serve the fundamental interests of the two peoples or meet the shared expectations of the international community”. Many countries are making nuclear power a critical part of their energy strategies as they look to safeguard energy security while reducing greenhouse gas emissions. At the COP28 climate change conference that concluded in December 2023, more than 20 countries signed a joint declaration to triple nuclear power capacity by 2050.

He will also attend the 30th APEC Economic Leaders’ Informal Dialogue, which will take place on November 16. In the suit, TikTok argued that the bill “infringes on its First Amendment right to make editorial choices over content curation”, while the users argued that “their right to speak on the platform is limited by [the bill]”. In its conclusion, the preliminary injunction found that the bill “limits constitutionally protected First Amendment speech”, and that it “oversteps state power and infringes on the Constitutional rights of users and businesses”. The talks follow the resumption of bilateral military talks in December 2023, after such talks were suspended for over a year. The FWG was set up in September 2023 between the Treasury and the MOF, fulfilling a commitment made during Treasury Secretary Janet Yellen’s visit to Beijing in July 2023. Join us as Kyle Freeman, Partner and Head of North American Client Services in Asia, recaps 2023 and explores the promising trends and opportunities for foreign businesses in China in 2024.

Current Landscape of U.S.-China Relations

The US has historically not sent government officials to the CIIE, making their attendance this year all the more significant. According to a brief statement from the Chinese Ministry of Environment and Ecology (MEE), the two sides conducted a “a comprehensive and in-depth exchange of views, and the meeting “reached positive results on carrying out bilateral cooperation and actions on climate change and jointly promoting the success of [COP28]”. In remarks given ahead of the four-hour meeting, held on the sidelines of the APEC Summit, both leaders emphasized the importance of the bilateral relationship, with Xi calling it “the most important bilateral relationship in the world”. A readout from the Chinese Ministry of Defense (MOD) stated China’s willingness to develop bilateral military relations and cooperate on important defense issues. The White House readout states that the meeting “was part of the effort to maintain open lines of communication and responsibly manage competition in the relationship” following the Xi-Biden talks in San Francisco in November. Meanwhile, the readout from the Chinese Ministry of Foreign Affairs called the talks “candid, substantive and productive”.

– Nixon goes to China

It could therefore be an opportunity to improve the deteriorating US-China relations by providing a platform on which to advance collaboration, according to analysts. Tesla CEO Elon Musk met with China’s Foreign Minister Qin Gang in Beijing on Tuesday during his first trip to China since 2020. According to a brief readout of the meeting published on the Ministry of Foreign Affairs (MFA) website, the meeting revolved around discussions of China-US “decoupling” and China’s market opening, as well as the potential of China’s electric vehicle (EV) market.

China Becomes Largest U.S. Foreign Creditor

The elections come a year after China recalls its ambassador after President Clinton authorizes a visit by Lee, reversing a fifteen-year-old U.S. policy against granting visas to Taiwan’s leaders. Chinese Communist Party leader Mao Zedong establishes the People’s Republic of China in Beijing on October 1 after peasant-backed Communists defeat the Nationalist government of Chiang Kai-shek. The United States—which backed the Nationalists against invading Japanese forces during World War II—supports Chiang’s exiled Republic of China government in Taipei, setting the stage for several decades of limited U.S. relations with mainland China. At the same time, the balance of interests on both sides likely will control hostile impulses, placing the relationship in a state of hardening competition that coexists alongside a mutual awareness that both sides will be impacted — for good or ill — by their capacity to address common challenges. President Joe Biden likely will use the challenges posed by China as a spur for his domestic resilience agenda.

If the major states discharge their global responsibilities credibly and cooperatively, we will not see a repeat of the breakdown of order in the 1930s. For instance, the United States has responded to the increasingly lopsided military balance across the Taiwan strait by taking steps to reinforce deterrence. Beijing, however, has interpreted these moves as a creeping strategy for eventual recognition of Taiwanese independence. Washington should seek ways to balance deterrence against a Chinese military strike on Taiwan with reassurance that the U.S. does not and will not support any unilateral Taiwanese move toward independence. The U.S. message must be that, while we hold dear our own commitment to democracy and reserve the right to speak out against major human rights abuses, such as those against Muslim minorities in Xinjiang, the United States does not seek to undermine the internal authority of the Chinese Communist Party. Rather, Washington’s interest lies in influencing the external policies of China where they impact U.S. interests and those of our allies.

In a press briefing held at the close of the meetings, the secretary emphasized that the US aims to achieve “a healthy economic relationship that benefits both our countries over time” and that it does “not seek to decouple [its] economy from China’s”. Global electricity demand is expected to rise at a faster rate over the next three years, growing by an average of 3.4% annually through 2026. The gains will be driven by an improving economic outlook, which will contribute to faster electricity demand growth both in advanced and emerging economies. Particularly in advanced economies and China, electricity demand will be supported by the ongoing electrification of the residential and transport sectors, as well as a notable expansion of the data centre sector. The share of electricity in final energy consumption is estimated to have reached 20% in 2023, up from 18% in 2015. While this is progress, electrification needs to accelerate rapidly to meet the world’s decarbonisation targets.

Sherman will be the second senior American official visiting China since President Joe Biden took office, following a visit to Shanghai in April by John Kerry, Biden’s special envoy on climate. The US has granted licenses authorizing suppliers to sell chips to China’s blacklisted telecom company Huawei for its growing auto component business, according to Reuters, citing two people familiar with the matter. Biden and Xi have had two phone calls before this summit, in September and February, respectively. This is the first time since Biden took office that the two leaders have spoken face-to-face, albeit virtually. The US Securities and Exchange Commission (SEC) has adopted amendments to finalize the rule implementing the submission and disclosure requirements in the Holding Foreign Companies Accountable Act (HFCAA). The United States Trade Representative (USTR) has said that it will realign its trade policies toward China in its 2022 Trade Policy Agenda and 2021 Annual Report, which details the work the organization will do to implement the Biden Administration’s trade policies.

China’s Ministry of Commerce (MOFCOM) has placed two US defense companies – Lockheed Martin Corporation and Raytheon Missiles & Defense, a subsidiary of Raytheon Technologies – on its List of Unreliable Entities in retaliation for their supply of arms to Taiwan. According to the MOFCOM announcement, the two units were added to the list in order to “safeguard national sovereignty, security and development interests”. The foreign minister was set to receive the US Secretary of State Antony Blinken in February, but the trip was canceled following fallout from the so-called “balloon incident”. This meeting was therefore the first high-level meeting between Chinese and US officials since this incident.

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