- Xi Jinping on Wednesday was playing nice with US business leaders and academics on Wednesday.
- He’s seeking to boost China’s faltering economy.
- But Xi is also trying to dent US global power on several fronts.
China’s President Xi Jinping presented an uncharacteristically affable image Wednesday, smiling broadly for US business leaders at a meeting in Beijing.
The Chinese leader sought to assure investors including Cristiano Amon of Qualcomm and Stephen Schwarzman of the Blackstone Group that the downturn in China’s economy, its biggest contraction in 15 years, would be over soon.
He went on to paint a bright picture of future US-China relations, saying, according to the Xinhua state news agency.
“Whether it is traditional fields such as economy, trade and agriculture, or emerging fields such as climate change and artificial intelligence,” he said, “China and the United States should help boost each other’s development.”
Only weeks ago, Xi struck a very different tone.
I don’t think China is in such a bind. That’s not to say they don’t face any challenges. However, their interests just aren’t as contradictory as this article suggests.
China can undermine US power and attract US investors by continuing its rapid economic growth. That of course is not easy. They need to transition away from an economy based on large scale infrastructure development towards growth sectors such as green energy and high tech. They also need to develop better trade relationships with their international suppliers. As of right now it’s clear they’re trying to do both of those things and there are early signs of success.
That said, the US is aware that a more economically powerful China threatens the unique advantages US investors currently enjoy on the international stage. That’s why the US is specifically trying to undermine China’s trade relationships and sanction its high growth sectors.
Honestly though, I think the US is taking a huge risk here that could easily backfire. While sanctioning Chinese high tech might slow China’s growth in the short term, China developing its own independent supply chains may allow it to come back with a vengeance. Additionally, trying to cut China out of international trade deals may cause China to pursue more advantageous relationships that cut out the US entirely.