At the press conference on Monday, Blinken commented on the exceptionally high trade between the two nations and expressed that America is set to collaborate with China in regards to macroeconomic steadiness. The State Department reported that day that there had been a meeting earlier in the day involving U.S. corporate entities in China which cover healthcare, automotive, and entertainment. As for Taiwan, Blinken mentioned the economic periphery of the matter.
At his Beijing press conference Monday, Secretary of State Antony Blinken emphasized the importance of the economic aspects of the U.S.-China relationship. He commented on the record-high trade between the two countries and stated that the U.S. is willing to cooperate with China in areas of mutual benefit, such as macroeconomic stability. On that same day, Blinken also held a meeting with American businesses in China working in health care, automotive, and entertainment. Furthermore, Michael Hart, president of the American Chamber of Commerce in China, divulged that prior to his February trip, they had lobbied for the Secretary to meet with business leaders, though were told there was no time for it.
Hart commented that he was unsure of what had changed since then, but expressed that a similar focus on business was present when Annalena Baerbock, Germany's Foreign Minister, had gone to Beijing in April. He then added that this demonstrated that politicians are cognizant of the economic linkages and the need for political stability that connect the two economies, referring to it as "significant". It was reported that during her visit, Baerbock had made a stop at Flender, a gearbox manufacturer. Colm Rafferty and Roberta Lipson, Chairman and Vice Chair of AmCham China, had attended the meeting with Blinken. When asked about AmCham China's remarks that they had not obtained an appointment with Blinken during his planned journey in February, the U.S. Department of State directed CNBC to Blinken's press conference on Monday.
On Monday, Blinken visited Beijing, the first trip by a U.S. Secretary of State since 2018. This meeting with Chinese President Xi Jinping being the most prominent. According to Gabriel Wildau, managing director of consulting firm Teneo, the primary economic takeaway from Blinken's visit was the fact it occurred. He stated that fear has been rising of a continuous worsening of bilateral relations, and this meeting demonstrated that relations will not necessarily become worse. Blinken also had meetings with Wang Yi, Director of the Chinese Communist Party's Central Foreign Affairs Office, and State Councilor and Foreign Minister Qin Gang.
The Trump administration was responsible for an increase in strain between the U.S. and China due to its tariff and sanctions strategies aimed at resolving long-standing grievances concerning the obstacles U.S. companies have faced in accessing the Chinese market as compared to local firms.At the Monday press conference, Blinken spoke of the challenges U.S. companies have had to tackle in China, as well as their hope to expand their business in the region. He further stated that doing business in China is beneficial to the U.S.
In spite of any regulatory challenges, businesses currently face a more pressing concern which is the decline in economic expansion both in China and the United States in the recent months. The Federal Reserve of the States has raised interest rates drastically with the aim of restraining inflation in the domestic market. To aid growth, the central bank of China has begun reducing key interest rates this month. Treasury Secretary Yellen is one of the anticipated U.S. representatives to make a trip to Beijing in the foreseeable future.
At a meeting between President Joe Biden and Xi in November, Biden discussed the need for global macroeconomic stability, among other topics, according to a readout. Following this, on Monday, Blinken spoke further on possible areas of cooperation, which included climate and the economy. He emphasised the importance of economic ties between the U.S. and China, but remarked that the U.S. cannot provide technological assistance that could be used against them. As part of this, the Biden administration has implemented sanctions and export controls in a bid to stop U.S. businesses from working with Chinese entities on high-end semiconductors.
Blinken addressed the economic aspect of Taiwan, observing that a conflict over the land could provoke an economic crisis which would have a global impact, as 50% of commercial container traffic passes through the Taiwan Strait every day, with 70% of semiconductors manufactured there. He made it clear to the Chinese about the growing unease regarding their "provocative actions" and the "dramatic consequences" if an emergency on Taiwan were to erupt. Beijing insists that Taiwan is part of its country and is seeking "peaceful reunification". The U.S. does not recognize this claim and maintains unofficial relations with Taiwan, however, it is understood that any differences in opinion related to the latter will be solved peacefully and does not support Taiwan's independence.
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