Xi Jinping Biden Summit video: Some think tanks say it could pave the way for bilateral trade talks

Xi Jinping Biden Summit video:

This Monday (November 15th US time) US President Biden and Chinese President Xi Jinping had a video meeting. Compared with the Taiwan issue the leaders of the two sides seem to have little confrontation in the economic and trade field. US officials have previously made it clear that there will be no specific results related to this meeting.

 

However according to China's Xinhua News Agency Beijing agreed to implement an upgraded version of the fast track for American business people to come to China. This may be the only achievement in the economic and trade field.

US Trade Representative Dai Qi's Speech Releases Five Signals to China

The Biden Xi Jinping Video Summit end  a few key points you should know

Biden and Xi Jinping hold a video meeting: friendly opening showing differences on the Taiwan issue.

Chinese leader Xi Jinping

However Chinese leader Xi Jinping stated in the meeting that the United States should stop abusing and generalizing the concept of national security to suppress Chinese companies and should pay attention to the spillover effects of domestic macroeconomic policies and adopt responsible macroeconomic policies; China and the United States need to maintain macroeconomic policies. 

Communication at the level supports the recovery of the world economy and guards against economic and financial risks.

For this meeting ANZ Bank analyzed in its research report that at this stage both China and the United States do not want unnecessary external risks. 

The meeting between the two heads of state paved the way for subsequent trade negotiations. In the following negotiations the United States may soften its trade measures with China.

In business don't politicize Sino-US economic and trade issues. Xi Jinping said.

Biden said that his government needs to protect American workers and industries from China's unfair trade and economic practices.

Consistently Criticizing

There are more and more signals for further trade negotiations. In October US Trade Representative Dai Qi delivered a speech. 

In addition to consistently criticizing China's trade policy he also said that he would abandon Trump's second phase agreement (which has not yet been signed and entered into force). 

The agreement seeks for China to carry out more in-depth reforms of its state-owned economy which she said is unlikely to succeed.

After the above speech Craig Allen Chairman of the US-China Business Council told the BBC that Dai Qi's speech appeared to be an invitation to the resumption of negotiations between the two countries.

Last week Dai Qi further stated that bilateral negotiations on China's compliance with the Phase 1 trade agreement are making progress but she refused to predict the outcome while the discussion continues. 

It is worth mentioning that with the expiration of the first phase agreement according to Peterson Institute of International Economics senior researcher Bowen (Chad Bown) estimates so far China has only completed 62% of the purchase target.

United States

In the United States the trade war with China is very popular politically so Trump’s approach is also political. 

Chief Professor Albert Park of the Department of Economics at the Hong Kong University of Science and Technology previously told BBC Chinese. 

Biden also has no political motives to weaken his current position on China.

From the data point of view the trade deficit between the United States and China decreased slightly at the beginning of the trade war but the overall trade deficit rose by 22.8% from 2016 to 2019. 

After the outbreak began the deficit with China jumped sharply.

These developments roughly confirmed the predictions of many experts.

The reason behind this is that China’s lost orders from multinational companies have not returned to the United States. 

These orders have just fallen into the pockets of other countries; under the raging epidemic a large number of Southeast Asian orders have to return to China where the epidemic is well controlled.

Therefore in the specific implementation process Park Zhishui believes that Biden may follow the advice of experts and realize that many tariffs have caused unnecessary harm to American producers and consumers. 

Therefore he will target the tariffs on those who have definite evidence showing that there are problems. 

The field of fair trade. Rather than levying across the board this is not only inefficient but also self-harm.

At present while Biden continues to tighten restrictions on Huawei and Chinese telecom operators it has taken measures to give other Chinese companies room to avoid tariffs. 

Dai Qi previously announced that it would restart a targeted program.

 

Approving the exemption of punitive tariffs on certain Chinese imports will ease the pressure on American companies to a certain extent and more such measures may be launched in the future.

For American companies this is far from enough. Last Friday on the eve of the China-US Leaders’ Summit 24 American Chambers of Commerce including the American Importers and Exporters Association the American Chamber of Commerce and the Semiconductor Industry Association jointly sent a letter to Dai Qi and Secretary of the Treasury Yellen urging the White House to reduce the import ) Tariffs on Chinese goods and expand the scope of import tariff exemptions to restore the competitiveness of American companies.

In the letter the organization urged the government to abolish tariffs and requested immediate action to substantially expand the scope of tariff exemptions and provide Americans with additional relief.

These associations stated that tariffs continue to cause disproportionate economic damage to American businesses farmers workers and households. 

The United States imposes tariffs of up to 25% on Chinese imports worth more than US$300 billion.

40 billion U.S. dollars:

The data they provide shows that these tariffs have cost US importers more than 110 billion U.S. dollars of which 40 billion U.S. dollars occurred during the Biden administration.

These associations say the tariffs will continue to cause disproportionate economic damage to American businesses farmers workers and households. 

The US imposes tariffs of up to 25 percent on more than $300 billion worth of Chinese imports. 

The data they provide shows that these tariffs cost US importers more than $110 billion including $40 billion during the Biden administration.

Significantly Expand

In the letter the organization called on the government to remove the tariffs and called for immediate action to significantly expand the scope of the tariff exemption and to provide additional assistance to America.