China laid out its grievances with the US just before meetings between economic czar He Lifeng and Treasury Secretary Janet Yellen, illustrating the fragility of recently improved ties.
Beijing accused the US of discrediting the Asian nation’s business environment, highlighting Commerce Secretary Gina Raimondo saying American companies told her China was “uninvestable.” In a commentary posted on the social media account of China Central Television, Beijing also complained about what it said was the lack of a level playing field for firms investing in the US and the sanctioning of more than 1,300 entities.
See: China Vice President Sees ‘Positive Signals’ in Ties With US
The commentary said US economic policy was dominated by “hegemonic thinking,” adding Washington’s efforts to drive China out of global supply chains was futile and semiconductor restrictions were hurting American firms. It also complained the US was fabricating a false narrative that Beijing entrapped developing nations in debt after President Joe Biden took at jab at what he termed “debt-trap diplomacy.”
The litany of complaints just before a meeting of senior economic officials shows that while ties between the nations have improved following a flurry of high-level visits recently involving Secretary of State Antony Blinken, Chinese Foreign Minister Wang Yi and others, progress in resolving difference will likely be difficult.
The meetings between Yellen and He on Thursday and Friday in San Francisco come before an expected visit to the US by Chinese leader Xi Jinping for talks with Biden on the sidelines of the Asia-Pacific Economic Cooperation summit next week.
Xi is also expected to attend a dinner with top US business executives, likely an attempt to ease their worries about geopolitical tensions, a fragile economic recovery and detentions of employees.
Both nations have reasons to calm tensions now. Beijing needs stability to woo foreign investors as its economy slows, while Biden is seeking the same as he gears up for an election next year.
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The two leaders haven’t met since a Group of 20 summit in Bali, Indonesia, a year ago. Tensions spiked earlier this year when the US shot down what it said was a Chinese spy balloon, and the nations have remained deadlocked over trade, Taiwan’s status and spying accusations.
They both accuse each other of provocative military activity in the South China Sea. High-level military dialogue has been shut down since former House Speaker Nancy Pelosi visited Taiwan in August 2022, prompting the People’s Liberation Army to conduct drills simulating a blockade of the democracy.
--With assistance from Yujing Liu.
