US under pressure from businesses, EU to avoid ‘unnecessary conflict’ with China, but ‘much could still go wrong’
- US Treasury Secretary Janet Yellen is due to travel to Beijing on Thursday for a long-awaited four-day visit to discuss economic and trade issues
- US Secretary of State Antony Blinken also visited China last month, but some American companies have been lobbying Washington to de-escalate tensions
Washington is under pressure from American businesses to adjust its approach to China as the US seeks to resume economic engagement with Beijing, although uncertainties still remain and may even worsen ahead of a possible leaders’ summit later this year, according to sources and analysts.
Engagement on economy and trade used to prevent bilateral relations from derailing, but in recent years, a technology rivalry has intensified, and Beijing has also spearheaded indigenous innovation to break US-led containment efforts, which it views as an existential crisis for China’s economic growth.
Some US companies, though, have been lobbying Washington to de-escalate tensions, according to sources who refused to be identified due to the sensitive nature of the issue.