Tag: US China relations

US mulls extreme action on Chinese connected vehicles amid security concerns

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US could take “extreme action” and ban Chinese connected vehicles or impose restrictions on them, Commerce Secretary Gina Raimondo said on Wednesday, in the first indication a ban could be on the table after a national security investigation.

The Commerce Department is reviewing public comments that were due by April 30, Raimondo told Reuters, on a probe the Biden administration launched in February into whether Chinese vehicle imports pose national security risks.

“We have to digest all the data and then figure out what action that we want to take,” Raimondo said without detailing a timeline. “We could take extreme action, which is to say no Chinese connected vehicles in the United States or look for mitigation” including safeguards, guardrails or other requirements.

The White House said in February the Commerce probe was being opened because vehicles “collect large amounts of sensitive data on their drivers and passengers (and) regularly use their cameras and sensors to record detailed information on US infrastructure.”

White House officials told reporters in February it was too early to say what action might be taken on connected Chinese vehicles.

Raimondo said at a US House of Representatives hearing she was concerned about Chinese-connected vehicles that “could be collecting massive amounts of data on Americans, who they are, what they say in their car, where they go to, their patterns of driving.” She added the United States needs “to take the threat much more seriously” of Chinese-connected vehicles and other tech issues.

President Joe Biden has repeatedly said he will take action to prevent a flood of Chinese vehicle imports.

There are relatively few Chinese-made light-duty vehicles being imported into the United States.

In comments to the Commerce Department, automakers highlighted it may be difficult to overhaul their technology systems to ease national security concerns.

The Alliance for Automotive Innovation, a trade group representing General Motors, Toyota, Volkswagen and nearly all major automakers, said in an April 30 filing automakers are committed to developing a framework for information and communications technology and services systems in connected vehicles that appropriately mitigates the risks associated with Chinese designed systems.

But they warned vehicle systems “including their hardware and software components, undergo extensive pre-production engineering, testing, and validation processes and, in general, cannot be easily swapped with systems or components from a different supplier.”

The government of South Korea in a separate filing said the Korean automotive industry “expresses concerns about the broad scope of the investigation into connected vehicle supply chains, uncertainties surrounding the scope of potential regulatory targets and the timing of the implementation, all of which may lead to significant burdens on the industry.”

Senate Banking Committee Sherrod Brown said on Wednesday he had urged Commerce in a filing “to ban all Chinese internet-connected vehicles and smart vehicle technology that is designed, developed, manufactured, or supplied from China.”

The Biden administration is separately considering imposing new tariffs on Chinese-made vehicles and officials face new pressure to restrict Chinese electric vehicle imports from Mexico.

The Chinese foreign ministry in March said Chinese cars were popular globally not because of “so-called unfair practices” but because they had emerged out of fierce market competition and were technologically innovative.

In November, a bipartisan group of US lawmakers raised alarms about Chinese companies collecting and handling sensitive data while testing autonomous vehicles in the United States.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US-China Relations: Biden doesn’t want a third war, says strategic affairs expert Brahma Chellaney

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US Secretary of State Antony Blinken’s recent visit to Beijing has sparked speculation and analysis, particularly in the context of escalating global tensions. In the backdrop of ongoing conflicts in Ukraine and the West Asia, Blinken’s trip symbolises President Biden’s strategic diplomatic outreach to China, aiming to stabilise the complex relations between the two superpowers.

Strategic affairs expert Brahma Chellaney emphasised the significance of Biden’s approach, citing America’s current engagements in multiple theatres of conflict. “The fact is that Biden, because of America’s preoccupation with two wars—the war in Ukraine, and also America’s growing involvement in the conflict in the Middle East—looks overextended,” Chellaney remarked. “It doesn’t want a third war to erupt. If China were to attack Taiwan, that would result in America’s direct involvement in a war with China. So to dissuade Xi Jinping from attacking Taiwan, Biden is relying more on diplomacy than on deterrence.”

Blinken’s arrival in China, his second visit within a year, was met with a lukewarm reception by Chinese authorities. This visit comes at a critical juncture as both nations endeavour to enhance communication channels and navigate contentious issues, including China’s support for Russia, its activities in the South China Sea, and its stance towards Taiwan.

Chellaney highlighted the evolving dynamics between China and Russia, characterising their alliance as a significant challenge for Washington. “The China-Russia alliance is the worst strategic nightmare for Washington,” Chellaney asserted. “This war in Ukraine is bringing China and Russia closer together.” He further pointed out Secretary Blinken’s recent remarks attributing China as the primary contributor to Russia’s defense industrial base, indicating a concerning collaboration between the two powers.

Chellaney, further highlighted that it’s evident that China’s support for Russia’s military endeavours, particularly in Ukraine, aims to constrain US involvement in global conflicts and potentially pave the way for assertive actions, such as the absorption of Taiwan. “Xi Jinping has been saying quite openly… that China will absorb Taiwan,” Chellaney revealed, underscoring the gravity of the situation.

Blinken’s visit coincided with significant legislative action in the United States, as the Senate passed a $95 billion emergency aid package for Ukraine, Israel, and Taiwan. The package was signed into law by President Biden on Wednesday. Additionally, the legislation includes provisions that could lead to the ban of the popular Chinese-owned app TikTok unless it separates from its parent company ByteDance Ltd.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

As US Secretary of State Blinken heads to China, these are the major divides he will try to bridge

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Secretary of State Antony Blinken is starting three days of talks with senior Chinese officials in Shanghai and Beijing this week with US-China ties at a critical point over numerous global disputes.

The mere fact that Blinken is making the trip — shortly after a conversation between President Joe Biden and Chinese leader Xi Jinping, a similar visit to China by Treasury Secretary Janet Yellen and a call between the US and Chinese defense chiefs — might be seen by some as encouraging, but ties between Washington and Beijing are tense and the rifts are growing wider.

From Russia and Ukraine to Israel, Iran and the broader Middle East as well as Indo-Pacific and trade issues, the US and China are on a series of collision courses that have sparked fears about military and strategic security as well as international economic stability.

Blinken “will raise clearly and candidly our concerns” during the talks starting Wednesday, a senior State Department official said.

Here’s a look at some of the key issues Blinken is expected to bring up on the trip:

RUSSIA-UKRAINE WAR

The Biden administration has grown increasingly concerned in recent months about Chinese support for Russia’s defense industrial base, which US officials say is allowing Moscow to overcome Western sanctions imposed after its invasion of Ukraine and resupply its military. US officials say this will be a primary topic of conversation during Blinken’s visit.

While the US says it has no evidence China actually is arming Russia, officials say other activities are potentially equally problematic.

“If China purports on the one hand to want good relations with Europe and other countries, it can’t on the other hand be fueling what is the biggest threat to European security since the end of the Cold War,” Blinken said last week.

A senior State Department official said Friday that “through Chinese support, Russia has largely reconstituted its defense industrial base, which has an impact not just on the battlefield in Ukraine but poses a larger threat, we believe, to broader European security.”

MIDDLE EAST TENSIONS

US officials, from Biden on down, have repeatedly appealed to China to use any leverage it may have with Iran to prevent Israel’s war against Hamas in Gaza from spiraling into a wider regional conflict.

While China appears to have been generally receptive to such calls — particularly because it depends heavily on oil imports from Iran and other Mideast nations — tensions have steadily increased since the beginning of the Gaza war in October and more recent direct strikes and counterstrikes between Israel and Iran.

Blinken has pushed for China to take a more active stance in pressing Iran not to escalate tensions in the Middle East. He has spoken to his Chinese counterpart, Wang Yi, several times over the past six months and urged China to tell Iran to restrain the proxy groups it has supported in the region, including Hamas, Lebanon’s Hezbollah, Yemen’s Houthis and Iranian-backed militias in Iraq and Syria.

Blinken told Wang in a phone call this month that “escalation is not in anyone’s interest and that countries should urge Iran not to escalate,” State Department spokesman Matthew Miller said of their last conversation.

The senior State Department official said Blinken would reiterate the US interest in China using “whatever channels or influence it has to try to convey the need for restraint to all parties, including Iran.”

TAIWAN AND THE SOUTH CHINA SEA

In the Indo-Pacific region, China and the United States are the major players, but Beijing has become increasingly aggressive in recent years toward Taiwan and its smaller Southeast Asian neighbors with which it has significant territorial and maritime disputes in the South China Sea.

The US has strongly condemned Chinese military exercises threatening Taiwan, which Beijing regards as a renegade province and has vowed to reunify with the mainland by force if necessary. Successive US administrations have steadily boosted military support and sales for Taipei, much to Chinese anger.

The senior State Department official said Blinken would “underscore, both in private and public, America’s abiding interest in maintaining peace and stability across the Taiwan Strait. We think that is vitally important for the region and the world.”

In the South China Sea, the US and others have become increasingly concerned by provocative Chinese actions in and around disputed areas.

In particular, the US has voiced objections to what it says are Chinese attempts to thwart legitimate maritime activities by others in the sea, notably the Philippines and Vietnam. That was a major topic of concern this month when Biden held a three-way summit with the prime minister of Japan and the president of the Philippines.

HUMAN RIGHTS AND SYNTHETIC OPIOIDS

The US and China are at deep odds over human rights in China’s western Xinjiang region, Tibet and Hong Kong as well as the fate of several American citizens that the State Department says have been “wrongfully detained” by Chinese authorities.

China has repeatedly rejected the American criticism as improper interference in its internal affairs. Yet, Blinken will again raise these issues, according to the senior State Department official, who added that China’s self-described efforts to rein in the export of materials that traffickers use to make fentanyl have yet to yield significant results.

The two sides agreed last year to set up a working group to look into ways to combat the surge of production of fentanyl precursors in China and their export abroad. US officials say they believe they had made some limited progress on cracking down on the illicit industry but many producers had found ways to get around new restrictions.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US Secretary of State Antony Blinken to visit China from April 24-26

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US Secretary of State Antony Blinken will travel to China next week, which officials said is part of the plan of the Biden Administration to responsibly manage the US-China relationship by strengthening lines of communication to reduce the risk of miscalculation and conflict.

The China visit by Blinken comes after a series of highest-level interactions between the two countries, including the phone call between the Presidents Joe Biden and Xi Jinping, which was followed by a visit to Beijing by Treasury Secretary Janet Yellen and a telephone call that the Defense Secretary has had last week with his Chinese counterparts.

With stops in Shanghai and Beijing, from April 24 to 26, Blinken would be accompanied by senior officials, including Under Secretary for Public Diplomacy and Public Affairs Liz Allen, Assistant Secretary for the Bureau of East Asian and Pacific Affairs Daniel Kritenbrink, Assistant Secretary for the Bureau of International Narcotics and Law Enforcement Affairs Todd Robinson, and Ambassador at Large for Cyberspace and Digital Policy Nathaniel Fick.

“The Secretary’s visit will, of course, build on our intensive diplomacy over the past year to responsibly manage the US-China relationship by strengthening lines of communication to reduce the risk of miscalculation and conflict,” a senior administration official told reporters here.

Blinken’s trip will follow Biden and Xi’s summit meeting in Woodside, California in November, National Security Advisor Sullivan’s meeting with Director and Foreign Minister Wang Yi in Bangkok in January, DHS Secretary Mayorkas’s meeting with MPS Minister Wang Xiaohong in Vienna in February. Blinken had met Director and Foreign Minister Wang Yi in Munich in February.

“We are in a different place than we were a year ago when the bilateral relationship was at a historic low point. We have set out to stabilize the bilateral relationship without sacrificing our capacity to strengthen our alliances, compete vigorously, and defend our interests. We also believe, and we have also clearly demonstrated, that responsibly managing competition does not mean we will pull back from measures to protect US national interests,” the senior administration official said.

Blinken has three primary objectives for his trip to China, the official said.

First, making progress on key issues. Second, clearly and directly communicating concerns on bilateral, regional, and global issues. Third, responsibly managing competition, so that it does not result in miscalculation or conflict.

“We’ve grounded these objectives in the administration’s approach to the PRC, which you have heard many times, of course, and that’s namely our invest, align, and compete strategy. We’ve made significant progress on each pillar of our strategy, and we believe that our doing so has strengthened our competitive position,” said the official.

“We’ve invested in the foundations of American strength with historic legislation on infrastructure, chips and science, and clean energy. We have reinvigorated our network of alliances and partnerships,” the official said.

According to the official, Blinken will also reiterate their deep concerns regarding Chinese support for Russia’s defence industrial base.

“He will discuss the crisis in the Middle East, and of course, the Secretary will discuss challenges in the Indo-Pacific, including PRC provocations in the South China Sea, as well as the DPRK’s threatening rhetoric and reckless actions. He will also discuss the crisis in Burma. The Secretary will also reaffirm the importance of peace and stability across the Taiwan Strait,” the official said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US and China defence chiefs resume talks after 18-month hiatus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US Defence Secretary Lloyd Austin on Tuesday, April 16, spoke with his Chinese counterpart for the first time since November 2022.

They discussed bilateral ties and underlined the importance of maintaining open lines of military-to-military communication, amidst Beijing’s aggressive manoeuvres in the Indo-Pacific.

The video conference was the maiden communication between Austin and Admiral Dong Jun, China’s Defence Minister, who assumed charge in December last year.

It is also the first time the Defence Secretary has spoken at length with his Chinese counterpart since November 2022, when he met with the then-PRC (People’s Republic of China) Minister of National Defence, General Wei Fenghe, at the ASEAN Defence Ministers Meeting-Plus in Cambodia.

Austin emphasised the importance of continuing to open lines of military-to-military communication between the United States and the PRC, following the 17th US-PRC Defence Policy Coordination Talks (DPCTs) in January 2024 and a round of working-level Military Maritime Consultative Agreement (MMCA) talks in early April 2024, Pentagon Press Secretary Pa Ryder said after the call between the two top officials.

The Defence Secretary reaffirmed the announcement by President Joe Biden and Chinese President Xi Jinping in November 2023 that both sides will resume telephone conversations between theatre commanders.

He also reiterated that the US will continue to fly, sail, and operate – safely and responsibly – wherever international law allows, Ryder said.

During the call, Austin underscored the importance of respect for high seas freedom of navigation guaranteed under international law, especially in the South China Sea.

The Chinese military has been behaving assertively in the Indo-Pacific region, causing concerns in many global capitals.

He also discussed Russia’s unprovoked war against Ukraine and expressed concerns about recent provocations from the Democratic People’s Republic of Korea (DPRK),” Ryder said.

“The Secretary also reiterated that the United States remains committed to our longstanding one-China policy, which is guided by the Taiwan Relations Act, the Three US-China Joint Communiques, and the Six Assurances, and he reaffirmed the importance of peace and stability across the Strait, he added. The call follows Biden’s November 15 meeting with Chinese President Xi, as well as Chairman of the Joint Chiefs of Staff Gen. CQ Brown Jr.’s call via video teleconference with his People’s Liberation Army counterpart on December 21, 2023.

Biden and Xi welcomed ongoing efforts to maintain open channels of communication and responsibly manage the relationship through high-level diplomacy and working-level consultations in the weeks and months ahead, a White House statement said after the two leaders’ meeting.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US blacklists four more Chinese firms for helping boost military

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US has added four Chinese companies to an export blacklist for buying US-origin goods to support China’s military modernization efforts, the Department of Commerce said in statement published Thursday.

There is a “presumption of denial” for applications to export to the four companies, according to the statement, meaning they will likely be unable to purchase US-origin items in the future. The companies are involved in providing AI chips to the Chinese military, according to a Reuters report of comments from Kevin Kurland, an export enforcement official with the department’s Bureau of Industry and Security.

The entity list has been used for years as one of Washington’s main tools for sanctioning and punishing people, companies or other organizations in China and elsewhere on national security grounds. US President Joe Biden has stepped up use of the list to curb Chinese companies in the years since he took office.

The affected companies are LINKZOL (Beijing) Technology Co., Xi’an Like Innovative Information Technology Co., Beijing Anwise Technology Co. and SITONHOLY (Tianjin) Co.

Beijing has said the entity list policy and other sanctions are an attempt to stop its development and hurt its firms. Entities are rarely removed once added, although in an unusual concession, the US removed a Chinese government laboratory from the list as part of a deal to combat the fentanyl crisis.

The Commerce Department also banned exports to two other Chinese firms, one for supporting Russian military procurement and one for trying to help Iran buy components for unmanned aerial vehicles.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Janet Yellen says US-China relationship on ‘more stable footing’ but more can be done to improve ties

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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U.S. Treasury Secretary Janet Yellen met Sunday with Chinese Premier Li Qiang in Beijing and sent a message of mutual cooperation despite the nations’ differences.

Yellen came to China top of mind with trade practices that put American companies and workers at an unfair competitive disadvantage.

In the ornate Fujian room of Great Hall of People building just west of Tiananmen Square, she told Li: “While we have more to do, I believe that, over the past year, we have put our bilateral relationship on more stable footing.”

“This has not meant ignoring our differences or avoiding tough conversations,” she said. “It has meant understanding that we can only make progress if we directly and openly communicate with one another.”

Li said media interest in Yellen’s visit “shows the high expectation they have … and also the expectation and hope to grow” the U.S.-China relationship.

Also Read: US and China seek to ease tensions ahead of Taiwan’s presidential inauguration

The meeting comes after the U.S. and China on Saturday agreed to hold “intensive exchanges” on more balanced economic growth, according to a U.S. statement issued after Yellen and Chinese Vice Premier He Lifeng held extended meetings over two days in the southern city of Guangzhou.

They also agreed to start exchanges on combating money laundering. It was not immediately clear when and where the talks would take place.

“As the world’s two largest economies, we have a duty to our own countries and to the world to responsibly manage our complex relationship and to cooperate and show leadership on addressing pressing global challenges,” Yellen said.

Yellen also met Sunday with Beijing Mayor Yin Yong and told him that “local governments play a critical (economic) role, from boosting consumption to addressing overinvestment,” adding that Beijing is particularly important in China.

“I believe that to understand China’s economy and its economic future, engagement with local government is essential,” Yellen said.

Later Sunday, Yellen will meet with students and faculty at Peking University.

Also Read: Israel pledges enhanced humanitarian aid after Biden’s warning, experts weigh in

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Chinese President Xi Jinping hosts meeting with US business leaders

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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China’s President Xi Jinping met with American business leaders at the Great Hall of the People in Beijing on Wednesday, as the government tries to woo foreign investors back into the country and international firms seek reassurance over new regulations.

Beijing wants to boost growth this year in the world’s second largest economy, after foreign direct investment into China shrank 8% in 2023 as investor concern grew over an anti-espionage law, exit bans and raids on consultancies and due diligence firms.

President Xi’s increasing focus on national security has left many companies uncertain where they might step over the line, even as Chinese leaders make public overtures towards overseas investors.

Some 20 firms were invited to participate in Wednesday’s gathering, according to two sources with knowledge of the matter, and the meeting ran for around 90 minutes, one of the sources said.

Stephen Schwarzman, co-founder and CEO of private equity firm Blackstone, Raj Subramaniam, head of American delivery giant FedEx, and Cristiano Amon, the boss of chips manufacturer Qualcomm attended the meeting, according to state media.

The two sources had no immediate comment on what was discussed at the meeting, which was organised by the National Committee on US-China Relations, the US-China Business Council and the Asia Society think tank.

The three organisations did not immediately respond to requests for comment on the meeting.

The gathering took place in the East Hall of the Great Hall of the People, which is reserved for important functions. Attendees sat in a square formation around a large red, orange and green floral installation, a video released by state media showed.

The audience with Xi follows Chinese Premier Li Qiang not meeting visiting foreign CEOs at the China Development Forum in Beijing on March 24-25, which prompted concerns over transparency in the world’s second-largest economy.

The chance to exchange views with Beijing’s second-ranking leader had become a key element of the summit in previous years.

Wednesday’s meeting followed a dinner in November with US executives in San Francisco, where Xi received a standing ovation.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Joe Biden, Xi Jinping meeting aimed at getting relationship back on better footing, but tough issues loom

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Presidents Joe Biden and Xi Jinping head into their big meeting at a country estate on Wednesday hoping to stabilise US-China relations after a period of tumult, but the US president also is prepared to confront his counterpart on difficult issues such as trade, Beijing’s burgeoning relationship with Iran and human rights concerns.

The two leaders, who will meet on the sidelines of a summit of Asian-Pacific leaders, last spoke a year ago. Since then, already fraught ties between the two economic superpowers have been further strained by the US downing of a Chinese spy balloon that had traversed the continental US and over differences on the self-ruled island of Taiwan, China’s hacking of a Biden official’s emails and other incidents.

The two leaders are in California for the annual Asia-Pacific Economic Cooperation forum but will hold their one-on-one talks at Filoli Estate, a country house and museum about 25 miles (40 kilometres) south of San Francisco, according to three senior administration officials. The officials requested anonymity to discuss the location, which had not yet been confirmed by the White House or the Chinese government due to tight security.

Both men are seeking to show the world that while the US and China are economic competitors, they are not locked in a winner-take-all faceoff with global implications. Their relationship has been increasingly defined by differences over export controls, Taiwan and the conflicts in the Middle East and Europe.

Biden is expected to let Xi know that he would like China to use its sway over Iran to make clear that Tehran or its proxies should not take action that could lead to the expansion of the Israel-Hamas war. The Biden administration also sees the Chinese, a big buyer of Iranian oil, as having considerable leverage with Iran, which is a major backer of Hamas.

Biden on Tuesday billed the meeting as a chance to get Washington and Beijing back “on a normal course corresponding” once again.

But White House National Council spokesman John Kirby said Biden was “not going to be afraid to confront where confrontation is needed on issues where we don’t see eye to eye.”

“We’re also not going to be afraid, nor should we be afraid, as a confident nation, to engage in diplomacy on ways which we can cooperate with China — on climate change, for instance, and clean energy technology,” Kirby said.

Biden will be focused on managing the countries’ increasingly fierce economic competition and keeping open lines of communication to prevent misunderstandings that could lead to direct conflict between the two powers.

While he’s expected to defend US expansion of export controls on semiconductor chips, he also will assure Xi that the US is not trying to wage an economic war with Beijing amid continuing signs that China’s economy is struggling to recover from the disruptions of the pandemic.

Xi, meanwhile, is looking for assurances from Biden that the US will not support Taiwan’s independence, start a new cold war or suppress China’s economic growth. He’s also keen to show the US that China is still a good place to invest.

Even before their meeting, there were some signs of a thaw: The State Department on Tuesday announced that the US and China — two of the world’s biggest polluters — had agreed to pursue efforts to triple renewable energy capacity globally by 2030, through wind, solar and other renewables.

There was also hope for some concrete agreements to come out of the meeting Wednesday, including on re-establishing military-to-military communications that have largely gone dark since August 2022, and on efforts to curb illicit fentanyl, a synthetic opioid that is increasingly responsible for US drug overdoses. Many of the chemicals used to manufacture the drug come from China.

The APEC summit events already have attracted considerable demonstrations and more were expected Wednesday, including protests against Xi and against multinational corporations focused on profits.

In the hours before the meeting, White House officials said Biden was coming into the talks bolstered by signs the US economy is in a stronger position than China’s, and that the US is building stronger alliances throughout the Pacific.

The US president, speaking at a campaign fundraiser on Tuesday evening, pointed to his upcoming meeting as an example of how “reestablished American leadership in the world is taking hold.” As for China, the president told donors, it has ”real problems.”

The International Monetary Fund recently cut growth forecasts for China, predicting economic growth of 5% this year and 4.2% in 2024, down slightly from previous forecasts. Last month, Beijing released economic data that showed prices falling due to slack demand from consumers and businesses.

Biden, meanwhile, has taken pride in proving wrong a large swath of economists who predicted that millions of layoffs and a recession might be needed to bring down inflation. The Labor Department said Tuesday that consumer prices rose at an annual pace of 3.2% annually, down from a June 2022 peak of 9.1%. Meanwhile, employers keep hiring and the unemployment rate has held below 4% for nearly two years.

Xi, after his meeting with Biden on Wednesday, will address American business executives at a $2,000-per-plate dinner that will be a rare opportunity for US business leaders to hear directly from the Chinese leader as they seek clarification on Beijing’s expanding security rules that may choke foreign investment.

Foreign companies operating in China say tensions with Washington over technology, trade and other issues and uncertainty over Chinese policies are damaging the business environment and causing some to reassess their plans for investing in the giant market.

A senior Biden administration official who briefed reporters ahead of the meeting said one big reason why Xi decided to make the trip to the US was to send the message to American CEOs that China was still a good place to invest. The official spoke on the condition of anonymity under ground rules set by the White House.

Senate Majority Leader Chuck Schumer said Tuesday that during a recent visit to Beijing, he and other lawmakers made the case directly to Xi that he could bolster China’s reputation in the US and around the globe by taking action to stop the flow of chemicals used to produce fentanyl.

“It is reported he’s very worried about the negative opinion of China in the United States,” Schumer said. “And I told him nothing could help raise China’s image a little bit in the United States more than stopping the flow of fentanyl.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow