US-China Relations - 9. page

Hong Kong Economic Journal (HKEJ) recently reported that JPMorgan CEO Jamie Dimon said China has been “very consistent” in opening its markets to financial services companies, but calculating the potential benefits for U.S. companies has become more complicated. In an interview with CNBC at the World Economic Forum in Davos, Dimon said investors that are considering expanding into China have to be “a little worried.” He added that he met with Chinese Premier Li Qiang on the sidelines of the Davos conference and “it’s a good thing they’re here.”

In the wide-ranging interview, Dimon also talked about the U.S. economy. In recent months, Dimon has repeatedly said that inflation may not disappear as quickly as the market expects, and that the Fed may have to further raise the benchmark interest rate. He said it would be a mistake to think that the future is all bright given that the U.S. already had so much fiscal and monetary stimulus — he would remain cautious.

Source: HKEJ, January 17, 2024
https://www2.hkej.com/instantnews/article?id=3664469

Nikkei Chinese Edition recently reported that U.S. imports from China during the period January to November, 2023, decreased by more than 20 percent compared with the same period in 2022. Although import data for December 2023 have not yet been released, it seems highly probably that U.S. imports from Mexico will surpass imports from China for the calendar year 2023.

There is a clear trend in the United States of “friend-shoring,” i.e. changing the source of imports from China to other countries who are more closely aligned with the U.S. This trend of relocating supply chains has been particularly rapid in categories of imports such as electronic products, previously highly dependent on imports from China. In terms of smartphones, imports from China decreased 10 percent year-over-year during the period from January to November. Meanwhile, electronic product imports from India expanded by a factor of five. For laptop computers, U.S. imports from China decreased by about 30 percent, while imports from Vietnam’s increased by a factor of four.

In 2023, U.S. imports from Europe and Southeast Asia increased, and imports from the European Union (EU) hit a new high during the period January to November, 2023. Although the import volume from ASEAN countries decreased year-over-year, this year’s imports from the ASEAN region were still the second highest in history, with the share of imports from ASEAN countries double that of 10 years ago.

In order to mitigate geopolitical risks, multinational corporations have widely adopted a “China + 1” strategy, diversifying their supply chains to avoid overreliance on China.

Source: Nikkei Chinese, January 10, 2024
https://cn.nikkei.com/politicsaeconomy/investtrade/54529-2024-01-10-09-54-58.html?start=0

On December 11, 2023, U.S. President Biden issued “A Proclamation on Suspension of Entry as Immigrants and Nonimmigrants of Persons Enabling Corruption.” On January 7th, Chinese state media outlet China Discipline Inspection and Monitoring News criticized this proclamation as U.S. “hypocrisy” and “double standards” on anti-corruption efforts. Its article reported that 20 of China’s most wanted fugitives are currently hiding in the U.S.

The article states that, in recent years, the U.S. has expanded the concept of national security “to justify long-arm jurisdiction and suppress its rivals, while perpetuating its own hegemony.” The report argues that U.S. anti-corruption efforts highlight hypocrisy and hegemonic goals, as well as expose the U.S. as “the world’s largest safe haven for corruption assets and fugitives.”

Specifically, the article claims that the U.S. hosts the highest concentration of persons from developing countries who are suspected of corruption and white-collar crimes. Of the “100-Person Red Notice List” published by the Chinese Interpol office, 20 out of the 38 fugitives who have not yet been brought to justice in China are said to be hiding in the U.S. (The “100-Person Red Notice List” refers to 100 Chinese former state officials who were suspected of corruption and became fugitives targeted for pursuit by Chinese authorities.)

Some Chinese netizens questioned why the CCP’s state media is criticizing the new U.S. entry ban, which ostensibly would make life harder for corrupt individuals fleeing from Chinese authorities. Some netizens speculated that corrupt people [within the CCP] and their families are angry that they can no longer travel to or study in the U.S. One netizen remarked that many families of corrupt Chinese officials will now have to return to China.

Sources:
Central News Agency (Taiwan), January 8, 2024
https://www.cna.com.tw/news/acn/202401080123.aspx

The White House (US), December 11, 2023
https://www.whitehouse.gov/briefing-room/presidential-actions/2023/12/11/a-proclamation-on-suspension-of-entry-as-immigrants-and-nonimmigrants-of-persons-enabling-corruption/

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, according to sources familiar with the matter, the U.S. government recently resumed discussions on Trump-Era tariffs imposed on about US$300 billion of Chinese goods.

The Biden administration may raise tariffs on clean energy products. Tariffs on electric vehicles may increase. Chinese electric vehicles already face 25 percent tariffs, which limits the number of vehicles Chinese automakers can export to the United States. Other potential targets for higher tariffs include Chinese solar products and electric vehicle battery packs. The administration may also consider lowering tariffs on Chinese consumer products that officials consider not strategically important.

As China’s domestic economy declines, clean energy commodities are flooding into the global market at low prices. As a result, U.S. officials worry that U.S. companies will not be able to compete with Chinese products, even given the protection of existing tariffs and new subsidies. Some analysts have also pointed out that the United States government is preparing for next year’s presidential election, saying that the U.S. political parties may be motivated to take a tough stance against China in order to win votes.

China’s Ministry of Foreign Affairs commented that “The U.S.’s unilateral increase in tariffs violates the principles of the market economy and fair competition, and it threatens the security of global industrial and supply chains”.

Source: Lianhe Zaobao, December 21, 2023
https://www.zaobao.com.sg/realtime/world/story20231221-1457395?amp

People’s Daily quoted European scholar Jan Oberg stating that the U.S. has spent $1.5 billion to train Western journalists to write negative reports about China. Oberg said that the U.S. Congress passed a bill to spend such money five years ago.

Oberg claimed, “Now, those of us who have been to China or live here as Westerners see the complexity and vastness of China and can understand it from China’s perspective, resulting in different opinions. However, some Americans are different; they urgently need ‘enemies.'”

Oberg also stated that he did not see any threat to the U.S. in China’s foreign policy. He mentioned that China has not sailed warships off the coast of California or Florida; instead, it is the West that has “surrounded” China with naval vessels.

The article did not provide detailed information about who Oberg is.

Source: People’s Daily, December 19, 2023
http://world.people.com.cn/n1/2023/1219/c1002-40142558.html