On March 27, 2024, Chinese President Xi Jinping, in a meeting with senior American business leaders in Beijing, called for closer trade relations with the United States. This appeal comes during a period of gradual recovery in bilateral relations, which had recently fallen to their lowest level in years. Despite the heavy tariffs imposed by the United States on Chinese imports, Xi emphasized the mutually beneficial economic ties between the world’s two largest economies.[i]
China’s economy has struggled to recover from the severe restrictions it imposed on itself during the Covid-19 pandemic, which were only lifted at the end of 2022. However, Xi noted that China has once again contributed to global economic growth with double-digit percentages. He stated, “The China-U.S. relationship is one of the most important bilateral relationships in the world. Whether China and the U.S. choose to cooperate or confront each other concerns the prosperity of both peoples and the future and destiny of humanity.”[ii]
Among the participants in the meeting was Stephen A. Schwarzman, the billionaire chairman of the investment firm Blackstone. As the U.S. presidential elections approach and trade and tariff issues attract increasing attention, the Biden administration has shown little sign of easing the sanctions and measures imposed by former President Donald Trump on goods imported from China, despite being viewed as his rival in the upcoming elections.[iii]
Following the meeting, the U.S.-China Business Council expressed its honor in engaging in dialogue with the country’s highest-ranking leader, emphasizing its concerns regarding the decline in trade, investment, and business confidence, as well as its desire to facilitate improved interaction and commercial exchange between the two nations.[iv]
In its statement, the Washington-based council underscored the importance of increasing consumption in China to rebalance the economy and urged the government to address long-standing concerns related to cross-border data flows, government procurement, better protection of intellectual property rights, and increased regulatory transparency and predictability. Craig Allen, the president of the council, was also among the guests who met with Xi.[v]
Numerous foreign companies, including Apple, rely on Chinese manufacturers as key components in their supply chains and depend on the country’s 1.3 billion consumers for a substantial percentage of their global sales. The previously aggressive tone of China towards the United States has softened in recent months, particularly since the meeting between Xi and Biden in San Francisco in November 2023. U.S. officials, including Secretary of State Antony Blinken and Treasury Secretary Janet Yellen, have visited China and engaged with senior leaders.[vi]
Xi places significant emphasis on attracting foreign investment to support the economy. According to Xinhua, he stated, “The mutual successes of China and the U.S. create opportunities for each other.” He emphasized, “As long as both sides view each other as partners, respect one another, coexist peacefully, and collaborate for win-win outcomes, China-U.S. relations will develop.”
It is noteworthy that Xi highlighted the steady improvement in relations between the U.S. and China during the meeting and stressed the need for closer trade ties. This underscores the importance of trade and economic interaction between the two countries, especially in light of the economic challenges faced during the Covid-19 pandemic.
The commercial aspect of U.S.-China relations has become a significant focal point, particularly concerning issues such as the tariffs and trade restrictions imposed by the U.S. Xi’s remarks suggest that such barriers could harm mutually beneficial economic relations and that the solution lies in closer cooperation and dialogue.
The confidence expressed by American business leaders in China’s economic potential and consumer base reflects China’s significance in the global economy and its role as a major player in trade. Furthermore, the U.S.-China Business Council’s statement emphasizes its desire to address long-term concerns alongside trade and to enhance commercial relations. This may indicate China’s willingness to undertake reforms in areas such as regulatory transparency, intellectual property rights, and cross-border data flows.
In conclusion, Xi’s statements demonstrate China’s openness to economic development and foreign investment, as well as its belief in the potential for mutual gains with the U.S. However, the practical implications of these statements and their impact on the future of U.S.-China relations remain uncertain.
Overall, these developments illustrate the commercial dimension of U.S.-China relations and the importance of dialogue between the two countries. The future of these relations appears to be shaped by mutual cooperation and dialogue, although specific challenges and concerns still persist.
[i] “Chinese Leader Xi Issues a Positive Message at a Meeting with US Business Leaders as Ties Improve”, Associated Press News, https://apnews.com/article/china-us-trade-economy-xi-jinping-62568f1f1ba1f5d722e0e7795bb0bac6, (Date of Access: 28.03.2024).
[ii] “Chinese Leader Xi issues a Positive Message at a Meeting with US Business Leaders as Ties Improve”, The Washington Post, https://www.washingtonpost.com/world/2024/03/27/china-us-trade-economy-xi-jinping/6a3a83e2-ec31-11ee-8f2c-380a821c02db_story.html, (Date of Access: 28.03.2024).
[iii] “Chinese Leader Xi Issues a Positive Message at a Meeting with US Business Leaders as Ties Improve”, Associated Press News, https://apnews.com/article/china-us-trade-economy-xi-jinping-62568f1f1ba1f5d722e0e7795bb0bac6, (Date of Access: 28.03.2024).
[iv] “Chinese Leader Xi issues a Positive Message at a Meeting with US Business Leaders as Ties Improve”, The Washington Post, https://www.washingtonpost.com/world/2024/03/27/china-us-trade-economy-xi-jinping/6a3a83e2-ec31-11ee-8f2c-380a821c02db_story.html, (Date of Access: 28.03.2024).
[v] “Chinese Leader Xi Issues a Positive Message at a Meeting with US Business Leaders as Ties Improve”, Associated Press News, https://apnews.com/article/china-us-trade-economy-xi-jinping-62568f1f1ba1f5d722e0e7795bb0bac6, (Date of Access: 28.03.2024).
[vi] “Chinese Leader Xi issues a Positive Message at a Meeting with US Business Leaders as Ties Improve”, The Washington Post, https://www.washingtonpost.com/world/2024/03/27/china-us-trade-economy-xi-jinping/6a3a83e2-ec31-11ee-8f2c-380a821c02db_story.html, (Date of Access: 28.03.2024).
