Key Takeaways:
– Chinese President Xi Jinping assures President Biden of China’s readiness to cooperate with the incoming Trump administration.
– Xi’s statement signifies his concern over prospective protectionist policies from President-elect Trump.
– There are uncertainties in the U.S.-China relationship due to Trump’s campaign promises, such as imposing a 60% tariff on Chinese imports.
– U.S. companies are increasingly diversifying their sourcing away from China in response to potential policy changes.
China’s President Xi Jinping expressed his nation’s readiness to cooperate with the incoming administration of President-elect Donald Trump during a meeting with President Biden. The statement underscores China’s apprehension over the potential impact of Trump’s protectionist rhetoric on U.S.-China relations.
A Signal of Concern
Although President Xi did not mention Trump by name, his readiness to cooperate indicates a measure of concern over potential protectionist policies that could destabilize the U.S.-China relationship. “China is ready to work with a new U.S. administration to maintain communication, expand cooperation and manage differences so as to strive for a steady transition of the China-U.S. relationship for the benefit of the two peoples,” Xi said.
Predictable Insecurities
Unsurprisingly, the upcoming transition of power in the U.S. has stimulated anxieties about its future relationship with China. During his campaign, Trump promised to impose a hefty 60% tariff on Chinese imports, a policy that businesses heavily reliant on importing fear could potentially cripple them.
For instance, the president of Los Angeles-based Yedi Houseware Appliances, Bobby Djavaheri, expressed his concerns by stating that such tariffs would not only decimate his business but also impact all small businesses that depend on importing.
U.S. Firms Diversify Sourcing
In a climate of uncertainty, many American companies, including Nike and eyewear retailer Warby Parker, are diversifying their supply chains away from China. Shoe brand Steve Madden plans to cut down imports from China by almost 45% next year, indicating the perceived risk of Trump’s proposed trade policies.
The Challenge Ahead
Despite the apprehensions, president Biden expressed optimism, reflecting on the progress made in the relationship during his tenure. However, he also emphasized that managing competition with Beijing will be the most significant foreign policy challenge they will face.
Indeed, the past four years under Biden have been somewhat rocky, with instances of cyber espionage from China targeting U.S. networks and controversial escalation of arms sales to Russia. Last year, the administration had to shoot down a Chinese spy balloon that had traversed the U.S., further intensifying the complexities of the relationship.
Regardless, the meeting served as a significant juncture for Biden, whose relationship with Xi has been pivotal on the international stage. The presidents’ relationship goes back to their time as vice presidents, and both have acknowledged the lasting impression their numerous interactions left.
Awaiting Election Aftermath
As the world awaits the inauguration of President-elect Trump, the future of U.S.-China relations hangs in the balance. The incoming administration’s approach to China can either build upon previous efforts towards cooperation or reset the dynamics entirely. Either way, the decisions made in the White House over the next four years will inevitably shape the course of this significant international relationship.