US-China tensions: How major American corporate leaders are defusing hostility between world's two largest economies
1 min read 01 Jun 2023, 11:47 AM ISTAmerican corporate leaders are resuming trips to China and downplaying tensions between the two economies.Despite concerns over Beijing's global ambitions and human rights record, executives are increasingly vocal about preserving the relationship
PremiumMajor American corporate leaders resuming trips to China and making efforts to defuse or downplay the antagonism between the world's two largest economies. This stands in contrast to the growing tensions between Washington, D.C., and Beijing, as business leaders seek to emphasize the importance of China for economic growth.
Notably, Elon Musk, CEO of Tesla, recently visited Beijing for the first time in three years and held a significant meeting with China's foreign minister. Similarly, Jamie Dimon, CEO of JPMorgan, is currently attending a conference in Shanghai, marking his first trip to China since the onset of the pandemic
The growing tension between the US and China:
Tensions between the United States and China have been escalating, with the infamous spy balloon incident further exacerbating the strain. Key pain points include the bipartisan concerns surrounding TikTok, technology accessibility, investment, and even space exploration.
"Decoupling" has become one of the hottest buzzwords in geopolitical circles, with experts suggesting the possibility of both countries learning to exist independently.
Nevertheless, the interdependence of their economies and China's massive population make complete separation challenging. While countries like Vietnam, Thailand, and Singapore were speculated as potential alternatives during supply chain disruptions, Yet, ‘there's not a billion of them’ one banking executive cheekily told Axios in a recent conversation.
"Unfortunately, the relationship has deteriorated to its worst state since Henry Kissinger and Zhou Enlai began their conversations to reestablish relations between the two countries over fifty years ago," Graham Allison, founding dean of Harvard's Kennedy School of Government, told Goldman Sachs earlier this month.
Can US and China co-exist?
Despite concerns over Beijing's global ambitions and human rights record, executives are increasingly vocal about preserving the relationship. Dimon and Musk's visits mark the same. Warren Buffett and Charlie Munger criticized rising U.S.-China tensions, emphasizing the mutual interdependence of the two nations at Berkshire Hathaway's annual meeting.
Chinese foreign minister Qin Gang told Musk that his country was committed to improving the business climate, and even employed a car metaphor to make his point. "We must step on the brake in time, avoid dangerous driving and be skillful at using the accelerator to promote mutually beneficial cooperation," Reuters reported Qin as saying.
The two economies have little choice (at least in the foreseeable future) but to keep relying on each other, whether or not political leaders recognize that fact.
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