US and China pitch rival supply-chain visions in latest clash over global trade and economic needs
- Hours before Beijing is to launch international expo featuring tech giants like Tesla and Apple, Joe Biden unveils White House ‘resilience council’
- US supply-chain measures meant to spur domestic production of essential medicines and cut reliance on ‘high-risk foreign supplies’
The US and China this week are pitching rival visions of what constitutes a resilient and sustainable supply chain, marking the latest chapter in their fierce competition to assert a global trading system built around their respective economic needs.
In doing so, Biden announced 30 new actions “to strengthen supply chains critical to America’s economic and national security”, according to the White House.
The framework seeks to establish rules covering areas ranging from data protection to carbon emissions, and its founding members comprise 14 Asia-Pacific nations who together account for 40 per cent of the world’s GDP.
Biden and his fellow Democrats are eager to score political points with a visible implementation of his repeated pledge to fortify US supply chains and rely less on China. At various points in his presidency he has called for relocating more American manufacturing stateside.
On Monday, Biden said the US “never gives up”, predicting that 50 years from now historians would view “this moment” as “the beginning when America won the competition of the 21st century”.
Meanwhile, Beijing’s supply-chains expo will host 515 companies from 55 countries and regions between November 28 and December 2.
American participants account for 25 per cent of the registered overseas exhibitors at the event, according to the China Council for the Promotion of International Trade, a Beijing-backed trade association.
The council has marketed the Beijing expo as a “testimony to China’s sincerity and readiness to greater opening up and its responsibility as a major country”, adding that economic globalisation was facing “counter-currents”.
Xi at Apec reportedly reiterated to Biden his stance against economic decoupling. Following their meeting, Biden told American business leaders that he was “de-risking, not decoupling” from China.