Joe Biden’s path on China and US economic recovery is likely to be similar to Donald Trump’s

Name: US-China relations: Joe Biden would approach China with more ‘regularity and normality’
Uploaded: 2020-11-18T14:00:15.000Z
Duration: 6 min 4 s
Description: US-China relations: Joe Biden would approach China with more ‘regularity and normality’

Many of the underlying issues that plagued the Trump administration remain, including US-China competition, national security concerns and populism

Biden’s relatively narrow victory with a divided Congress could still bode well for Asia if a more modest stimulus package passes after his inauguration

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US President-elect Joe Biden walks past tombstones after leaving the St Joseph on the Brandywine Catholic Church after attending Mass in Wilmington, Delaware, on Sunday. Photo: AFP

Aidan Yao

Published: 10:00pm, 18 Nov 2020Updated: 5:10am, 19 Nov 2020

Global markets breathed a sigh of relief as the US presidential election turned out to be less messy than feared. Even though the sitting president still has not conceded at the time of writing, the market seems to be certain enough about who will oversee the White House after January 20.

Despite all the legal challenges and political noise, investors have moved on to other matters affecting the global economy, such as the pandemic and the development of Covid-19 vaccines. However, the impact of the US election does not end with the immediate reaction of the financial markets. Many believe the election marked the beginning of more stable and predictable US policymaking.

What does this mean for China and wider Asia? First, a Joe Biden presidency could lead to some tactical changes in America’s China policies, but the overall competitive nature in the bilateral relationship is unlikely to change.

On the positive end, the two sides may find common ground to cooperate on issues such as climate change, nuclear proliferation and possibly combating global health threats like Covid-19.

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US-China relations: Joe Biden would approach China with more ‘regularity and normality’

On the economic front, de-escalation of trade tensions is increasingly priced in, not least by the foreign exchange market given the strong rally in the renminbi-US dollar exchange rate. Tariffs are unlikely to be rolled back immediately as Biden’s priority will be on domestic issues.