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China economy
EconomyGlobal Economy

China and Tennessee talk investment amid Donald Trump’s decoupling drive

  • The reliably Republican state seeks Chinese interest despite Washington’s push to separate the world’s two biggest economies
  • Discussions held as part of the China International Fair for Trade in Services, which Beijing is promoting as sign of continued opening up

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The central government is playing up the China International Fair for Trade in Services as the biggest event of its kind in the world since the outbreak of the coronavirus pandemic. Photo: Xinhua
Orange Wang
Representatives of China and Tennessee met in Beijing on Sunday to discuss the prospects for Chinese investment in the US state amid a broader American push to decouple the world’s largest two economies.
The discussions were part of the “North American Chinese Investment Summit”, the lone US-themed event at the second annual China International Fair for Trade in Services, which opened in China’s capital on Friday and will run until Wednesday.

The investment discussions took place as the Chinese leadership continues its efforts to de-escalate rapidly rising tensions with the United States, using a charm offensive to try to win over US local governments and the American business community.

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Tennessee is considered a reliably Republican “red state” in the US presidential election due to take place on November 3. As of Friday, opinion polls showed incumbent Donald Trump leading Joe Biden, the Democratic Party’s nominee, in the southeastern agricultural state by 12 percentage points, according to data tracker FiveThirtyEight. In 2016, Trump won the state with 60.7 per cent of the vote.

Conducting investment discussions with a Trump political stronghold appears to be the latest wrinkle in Beijing’s effort to engage the US even as Washington tries to cut trade, technology, financial and education exchanges with China.

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