The meeting between Biden and Xi conveyed a significant signal for the business interests of the United States in China

23 Nov, 2023

The meeting between Biden and Xi conveyed a significant signal for the business interests of the United States in China

U.S. President Joe Biden's recent meeting with Chinese President Xi Jinping in San Francisco has provided clarity in their relationship, reducing uncertainty for businesses, analysts reported. Meeting for the first time in about a year on the sidelines of the Asia-Pacific Economic Cooperation conference, the leaders signaled a commitment to cooperation based on reciprocity and mutual respect.

Wang Dong, executive director of the Institute for Global Cooperation and Understanding at Peking University, emphasized the consensus emerging from the summit, highlighting its importance for both countries and the global economy. The U.S. and China are exploring areas of cooperation, aiming for a mutually beneficial economic relationship.

Jake Colvin, president of the National Foreign Trade Council, expressed hope that the new tone set by the leaders would pave the way for a more normal economic footing, potentially leading to the reduction of tariffs and retaliatory measures. The Biden administration maintained its stance on export controls during discussions with Xi, citing national security concerns. However, both leaders acknowledged the need to address the risks of advanced AI systems and enhance AI safety through bilateral government talks.

The decision to restore military-to-military talks, on hold for over a year, and the indication that full decoupling is off the table signal a desire to avoid a downward spiral and foster cooperation where interests align, according to Gabriel Wildau, managing director at Teneo.

The meeting's impact is also evident in practical outcomes, such as the resumption of more flights between the two countries and Mastercard's joint venture in China receiving approval from the People’s Bank of China to process domestic payments. This joint venture, which had been pending for nearly four years, marks progress in economic cooperation.

Despite the Biden administration's efforts to restrict U.S. investment in Chinese companies developing advanced tech with military applications, the meeting reassures the business community that full decoupling is not imminent, especially in non-sensitive industries. The meeting sets a positive tone for U.S.-China relations, offering hope for a more stable and cooperative economic future.