AP
China seeks to smooth over differences with key partners and maintain strong economic ties
Last week, Beijing played host to Senator Steve Daines of Montana, a staunch supporter of President Trump. Officially, he arrived for the China Development Forum — an event that draws pillars of the global economy — but it appears his mission was broader and more significant. Notably, Daines, who is the highest-ranking politician to visit China following Trump’s election, is the only member of the new American leadership team with firsthand experience working and living in the PRC. In the 1990s, he spent six years as an executive director at Procter & Gamble in China and Hong Kong. During Trump’s first term, he was actively involved in the twists and turns of the trade war. In 2019, he held talks with Liu He — now China’s vice premier — and also met with Premier Li Qiang, who at that time headed the Shanghai Municipal Committee of the Chinese Communist Party.
Last week, Beijing played host to Senator Steve Daines of Montana, a staunch supporter of President Trump. Officially, he arrived for the China Development Forum — an event that attracts major figures in the global economy — but it appears his mission was broader and more significant. Notably, Daines, who is the highest-ranking politician to visit China since Trump’s election, is the only member of the new American leadership team with firsthand experience working and living in the PRC. In the 1990s, he spent six years as an executive director for Procter & Gamble in China and Hong Kong. During Trump’s first term, he was actively involved in the twists and turns of the trade war. In 2019, he held talks with Liu He — now China’s vice premier — and also met with Premier Li Qiang, who at the time headed the Shanghai Municipal Committee of the Chinese Communist Party.
Once again, Daines was able to secure an audience with China’s top leadership. He met with Vice Foreign Minister Ma Zhaoxu, Vice Premier He Lifeng, and finally Premier Li Qiang of the State Council.
According to the U.S. Embassy, Daines raised the issue of the drug fentanyl, which Washington believes is flowing from China into the United States. Meanwhile, Premier Li Qiang once again called for avoiding difficulties in bilateral relations and «choosing dialogue and cooperation over confrontation». Xinhua reported that the Chinese premier stressed that trade and economic cooperation is one of the key pillars of Sino-American relations. According to Li Qiang, the productive economic and trade cooperation between China and the United States over the past decades is the result of joint efforts by both sides — efforts that should be preserved.
It is unclear what else Senator Daines discussed with his Chinese counterparts. One might speculate that he was probing Beijing’s negotiating position ahead of a planned high-level meeting and conveying the views of the current U.S. administration. Official Beijing denies any involvement in the fentanyl issue at any level, insisting that the root problem lies with the United States itself, though it is not unwilling to discuss efforts to combat drug trafficking. As for the trade confrontation, China has recently shown a willingness to respond to sanctions targeting it, but in a relatively measured way. Not long ago, Foreign Minister Wang Yi summed up Beijing’s stance:
«If you suffer a setback, first look at yourself as the cause. Let’s see what the Americans have gained after all these years of tariffs and trade wars. What has happened to the negative trade balance? Has it gotten smaller or, on the contrary, bigger? What about manufacturing competitiveness — stronger or weaker now? Inflation — has it gone down? And people’s lives — have they improved? Our trade relations with the United States are based on mutual benefit and parity. Cooperation brings benefits to both sides. If there is no end to unreasonable measures, China’s response will not be long in coming».
At the same time, China’s Foreign Ministry issued an official statement urging U.S. lawmakers and businessmen to visit the country more often to gain a better understanding.
Chinese media reported that 750 foreign representatives attended the China Development Forum, including 86 top executives of multinational companies from 21 countries. A significant proportion of the participants were from U.S. and European companies, reflecting a high level of interest in doing business with and in China.
Further raising the stakes is the imposition of U.S. tariffs on European goods and the resulting tensions between the United States and Europe. It appears that China intends to capitalize on these frictions to secure greater trade and economic benefits with European countries and the EU as a whole — without sacrificing the level of engagement it maintains with the U.S. In this vein, Beijing has made several statements that have been well received in Brussels. Nevertheless, many challenges remain unresolved, such as EU tariffs on Chinese automobiles. Recently, however, China’s foreign minister spoke positively of mutual cooperation on the occasion of the 50th anniversary of diplomatic relations with the EU:
«Over the past 50 years, China and the EU have made significant progress in their cooperation. Bilateral trade has grown from $2.4 billion to $780 billion, and investment has increased from virtually zero to $260 billion. The total number of China-Europe container trains has exceeded 100,000, forming a «golden caravan» between Asia and Europe».
However, despite the importance of the U.S. and European markets — which also serve as sources of advanced technology — Beijing is paying increasing attention to ASEAN countries (China’s main trading partners) and the Global South (including Africa). Amid growing global uncertainty, there is a growing shift toward greater «self-reliance» — that is, a focus on the domestic market. This approach is evident in the pronouncements of China’s leadership.
«China’s economy has always emerged stronger and more successful from every test. Our confidence is based on the country’s massive market and domestic demand, its robust industrial system and innovation capacity, as well as its institutional advantages and our policy of reform and opening up. The next China is still China. The first phase of China’s miracle ended with unprecedented rapid growth, and the second phase promises to be even brighter and more remarkable», said Wang Yi.
At the recently concluded «Two Sessions», China reaffirmed its commitment to expanding openness and removing barriers to foreign investment. China continues to oppose protectionism and remains a leading advocate of free trade — an approach that is increasingly at odds with the new policy direction of the United States.