US-China relations: Premier Li Keqiang tells American firms there is room for cooperation, despite frosty diplomatic ties

Beijing on Tuesday gathered executives from dozens of American multinational firms for meetings, briefing them on issues ranging from investment to the US-China relationship
Chinese Premier Li Keqiang told leaders from companies such as Boeing, Honeywell, Qualcomm, General Motors and Pfizer there were ‘opportunities for cooperation’

US-China relations

Sidney Leng

Published: 8:00pm, 14 Apr, 2021

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China has assured American multinationals at two separate high-level meetings there are opportunities for mutually beneficial cooperation, despite the frosty bilateral relationship between Washington and Beijing.

At a virtual meeting on Tuesday with senior executives from more than 20 US firms including Boeing, Honeywell, Qualcomm, General Motors, Pfizer, Abbott, Corning and General Electric, Chinese Premier Li Keqiang discussed the investment environment and the US-China relationship, according to an official government report.

The meeting came on the heels of tense diplomatic talks in Alaska, where the United States and China clashed on issues ranging from Beijing’s policies in Xinjiang to Hong Kong and Taiwan. Senior diplomats left the meeting with few concrete agreements, but committed to work more closely on climate change and maintain channels for dialogue.

Tuesday’s dialogue with Li was the latest opportunity for US business leaders to share their views on the bilateral relationship and how it could be improved.

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It was also part of Beijing’s charm offensive to court US investment in China, despite increasing tensions that have led to calls for economic decoupling.

At the meeting, which was hosted by former US treasury secretary Henry Paulson, Li said the economic relationship between the world’s two largest economies was mutually beneficial and conducive to the well-being of the two peoples, as well as global stability.

“In the context of multiple shocks last year, the trade volume between the two countries bucked the trend, indicating that there are conditions and opportunities for cooperation between the two sides and that there is demand for economic and trade cooperation necessary for both of us,” Li said.

Last year, total trade between the US and China rose 8.3 per cent from a year earlier to US$586 billion, according to data from China’s General Administration of Customs. China’s exports to the US increased 7.9 per cent, while imports from the US grew at a faster pace of 9.8 per cent.

Decoupling is not good for anyone, and it will hurt the world

Li Keqiang

“As for the problems that arise from cooperation, we must solve them collaboratively. Decoupling is not good for anyone, and it will hurt the world,” Li said.

“I hope that the two sides will meet each other halfway, promote cooperation by expanding the pie of mutual interests, and maintain the security and stability of the industrial chain and supply chain.”

The American multinationals at the meeting stressed that the new era of US-China relations would be defined by economic competition and that frank communication could offset the risk of confrontation, according to a statement from Craig Allen, president of business lobbying group US-China Business Council, who attended the event.

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“During the meeting with Premier Li, we emphasised the importance of fully implementing China’s announced economic reform agenda and fulfilling its phase one [trade deal] commitments, which will demonstrate goodwill to the new US administration,” Allen said.

On the same day, the National Development and Reform Commission (NDRC), China’s top economic planning agency, also organised a round table meeting with a group of more than 60 representatives from 47 US companies and lobbying groups, briefing them on China’s new 14th five-year plan for the period 2021-25 and encouraging them to take part in the opening up of the domestic economy.

NDRC deputy director Ning Jizhe said the economic and trade exchanges between industrial and commercial firms in China and the US have formed an unbreakable community of interests over the past four decades.