China’s choice of Shanghai for US trade talks emphasises commercial rather than political focus, analysts say
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China’s decision to hold talks next week with the United States in Shanghai could be a fresh sign that Beijing is revising its strategy as it prepares for a protracted trade war, analysts said.
The assessments came as US Treasury Secretary Steven Mnuchin said the choice of location would be good symbolism – a communiqué signed in Shanghai in 1972 was considered a key document in normalising relations between Beijing and Washington.
But in an interview with CNBC, Mnuchin also said there were “a lot of issues” and more meetings were expected before any deal was done.
Analysts said that by choosing global financial hub Shanghai rather than the political centre of Beijing, China was trying to play down the political aspects of the talks and emphasise the commercial elements.
Larry Hu, chief China economist of Macquarie Capital, also noted that Shanghai has played a unique role in US-China relations.