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Has surprising US economic growth strengthened Washington’s hand in China negotiations?
- US economy expanded at annualised rate of 3.3 per cent in fourth quarter, while China is faced with challenges at home and abroad
- Trade and economic talks have increased since Xi Jinping met Joe Biden, with US Secretary of the Treasury Janet Yellen set to return to China this year
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Stronger-than-expected economic growth in the United States and China’s contrasting slow recovery could push Beijing to “be more willing to compromise” in its trade and economic negotiations with Washington, though talks are ultimately “driven by politics”, according to analysts.
The US economy expanded at an annualised rate of 3.3 per cent in the fourth quarter, the Department of Commerce said on Thursday, just over a week after China confirmed its economy grew by 5.2 per cent, year on year, in 2023.
Mainland China, though, is faced with challenges at home and abroad, and the current economic situation may mean China would “be more willing to compromise”, but not on major political issues such as Taiwan and South China Sea, according to Dexter Roberts, director of China affairs with the University of Montana’s Mansfield Centre.
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After President Xi Jinping visited the US in November, both countries resumed cooperation on issues including curbing the spread of fentanyl, as well as military-to-military communication.
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The two sides have also held meetings of financial and economic working groups, which were launched in September after a visit to Beijing by US Secretary of the Treasury Janet Yellen, with the aim of fostering regular communication.
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