Is America Changing Attitude With China?
Joe Biden’s new administration postpones a ban on investment in Chinese military-related companies (PLAs). According to the original plan, Mr. Trump’s decree banning US investments in these companies must be in place from January 28, 2021.
The U.S. Treasury Department’s latest announcement states that individuals, pension funds and financial companies can invest in Chinese businesses believed to be related to the defense industry until the 27th. / 5.
In November of last year, Donald Trump issued a ban on American individuals and legal entities from making any transactions, including investments, in companies that the government has determined to have ties to the military. Chinese team.
This list includes more than 30 companies in the aerospace, telecommunications, technology industries, including Huawei, Inspur Group…. In January, the New York Stock Exchange began removing three telecom companies from the list: China Telecom, China Mobile and China Unicom.
After all, after the inauguration of US President-elect Joe Biden, Washington decided to pursue a more balanced policy toward China. Mr. Joe Biden began to “selectively modify” the policies that Mr. Trump pursued towards China, starting with the “Sino-US Trade War”.
|Mr. Joe Biden has revised many of Trump’s policies related to China|
For example, trade minister nominees Gina Raimondo and White House press secretary Jen Psaki have avoided answering questions about whether the United States maintains sanctions on China’s Huawei. Both Gina Ramondo and Jen Psaki have only said they will conduct detailed consultations with allies to formulate common strategies with Chinese companies.
Ramondo in turn, while noting that the threat to US national security through telecom networks is unacceptable, but she did not specify what fate awaits Huawei and the companies. China differs in the US market.
There are certain changes in political statements as well. Accordingly, Mr. Joe Biden signed a memorandum that forbids government agencies from using the method of calling COVID-19 association with China. In the past, the Trump administration repeatedly named the virus this way to blame China, which has caused serious outrage in Beijing.
With this decision, Mr. Biden condemned the racism aimed at Asians in American society.
US policy towards China will be more cautious
Zhu Feng, director of the Center for International Relations Research at Nanjing University, remarked to Russian news agency Sputnik that the new US president’s first steps show Washington’s policy toward China. Quoc will not be as impulsive and reckless as under Trump.
“The Biden administration is sure to revisit its predecessor’s policies, especially in American domestic affairs. We see that, Biden signed more than a dozen executive orders on the first day of his term, reversing the harmful policies of the Trump administration, ”said Zhu Feng.
The United States is currently focusing on working with its allies. But in diplomatic relations, things are much more complicated. In policy towards China there is also strategic competition between the two great powers. So Biden won’t be in a hurry in this regard.
Trump’s decision to postpone sanctions shows that Joe Biden will not be as impulsive and wacky as his predecessor, and will more carefully weigh US interests when developing policy towards China. National and bilateral relationship.
According to expert Zhu Feng, these positive signals show that under Biden there will be positive changes in the development of bilateral relations, but the nature of US policy toward China will constant.
If you read carefully the new document of the US Department of Commerce extending the licenses to cooperate and invest in Chinese companies, you will see that this document contains many notable details.
First of all, this document allows investment in companies whose names are very similar to those recognized by the US government as related to the Chinese defense industry.
However, large corporations such as CNOOC Limited (中国 海洋 石油 总公司, ie China Marine Petroleum Corporation), China Mobile Limited (中国 移动 通信 公司, China Mobile Information Company), China Telecom Corporation Limited (中国 电信 股份有限公司, China Telecom Corporation Limited), China Unicom Limited (中国 联合 网络 通信 集团 有限公司, which means China Telecom Network Corporation Limited – Hong Kong ) is not included in the general license.
This shows that these corporations are still subject to sanctions. Perhaps the Biden administration thinks that the list of companies sanctioned by Trump’s decree is too long, like “carpet bombing” touched so many Chinese companies that the termination of cooperation with These companies will do great harm to American business. As a result, there will be companies that do not get out of the sanctions, but also companies that are removed from the list.
American businesses cannot immediately cut economic ties with China
Reality has shown that the economic confrontation between the United States and China harms the interests of the United States itself, said expert Zhu Feng.
In fact, Washington’s efforts to isolate Beijing and prevent China from accessing economic, technological, and other markets are not in keeping with the interests of the United States. The trade war sparked by Trump has indeed been costly for both sides.
What matters here is not just the opinion of the business community but the nature of the Biden administration, who work more professionally than the Trump administration. Mr. Biden needs to seriously think about the real damage to US interests, which cannot be avoided if the confrontation between the two countries continues to escalate.
Therefore, we can conclude that the lull in relations with Huawei and other Chinese companies is closely related to America’s national interests, not just the interests of one. number of business groups.
However, the strength of business lobbying groups should not be underestimated. American business has repeatedly expressed dissatisfaction with Trump’s sanctions restricting cooperation with Chinese companies.
America’s confrontation with the world’s second-largest economy in the field of economics and technology has directly affected the interests of US business lobbying groups.
China’s import of chips in recent years has been $ 300 billion, more than crude oil. It is not difficult to calculate the extent to which high-tech manufacturers in the US have lost the Chinese market. Huawei alone bought more than $ 11 billion worth of high-tech components in the United States in 2018.
The Biden administration is facing a daunting task. On the one hand, Mr. Biden cannot reverse the entire policy towards China 180 degrees – after all, they have a strong bipartisan consensus in Washington advocating for continuing to curb China’s technological development. National. As a result, the Biden administration will uphold most of the sanctions Mr Trump has imposed.
But on the other hand, under pressure from the business community, the new President will try to make these sanctions only superficial so that they do not directly affect the interests of the American business community in the context. technological and political competition between the two countries. This issue is especially important now, when the US economy needs the incentives to deal with the aftermath of the COVID-19 crisis.
After reviving the economy, the United States will continue these policies according to the roadmap, helping American corporations find alternative customers to gradually reduce their dependence on Chinese companies. Only then can Washington completely impose sanctions on Beijing.