The BGA China Team wrote an update to clients on U.S. Secretary of State Antony Blinken’s recent meeting with Chinese President Xi Jinping in Beijing.

Context

  • Blinken met with Xi and Wang Yi, China’s highest-ranking diplomat, in Beijing June 19 amid a nadir in the bilateral relationship. Blinken spoke with Foreign Minister Qin Gang in Beijing the day before. Blinken spoke with Xi for 35 minutes; his discussions with Wang and Qin lasted several hours.
  • The meetings between the top officials aimed to maintain a positive atmosphere; however, both sides acknowledged the significant tensions that have characterized their fraught ties over the past few years. Washington’s focus lies in strengthening security measures to mitigate risks and diversify economic and security partnerships in the Indo-Pacific and globally.

Significance

  • The long-anticipated meetings resulted in a brief and vague list of expected follow-ups. While both sides share an interest in stabilizing the deteriorating bilateral relationship, they are far from reaching an overarching consensus on how the relationship should develop in the long term, especially on the questions of Taiwan, regional security in the Indo-Pacific, climate change and the business and trade environment. Chinese officials denied the U.S. request to restore military-to-military communication, which stemmed from China’s decision to suspend military dialogue after former U.S. House Speaker Nancy Pelosi’s visit to Taiwan last August.
  • The most notable outcome was a shared commitment to continue high-level exchanges. Blinken invited Qin to visit the United States, and Qin expressed his willingness to do so at a mutually convenient time.Many analysts believe the probability of a resuming high-level dialogues is the greatest it has been since U.S. President Joe Biden took office. Biden and Xi might convene for a second meeting at the Asia-Pacific Economic Cooperation (APEC) leaders’ summit later this year regardless of progress at the working level.

Implications

  • Beijing seeks the relaxation of recent U.S. policies aimed at curbing Chinese technological development. China aims to stimulate its sluggish economy, attract foreign investment and enhance its strategic industries, particularly semiconductors and artificial intelligence. This desire for a more favorable policy environment reflects China’s ambition to bolster its domestic industries and expand its global influence in important technological sectors.
  • Chinese diplomats have been tasked in the short term with improving economic relations with the United States to accelerate growth following China’s challenging post-pandemic reopening and fragile recovery. The United States intends to continue restricting China’s access to critical technologies that are deemed a threat to U.S. national security. This approach underscores the ongoing tensions and competition between the two countries in various sectors, including technology and innovation.

BGA will continue to keep you updated on developments in China as they occur. If you have any comments or questions, please contact BGA China Adviser Eric Wang at ewang@bowergroupasia.com.

Best regards,

BGA China Team

A small ginko leaf

Advisor

Eric has over two decades’ experience in government affairs and public relations and currently serves as firm partner and managing director of Yuan Associates. He has worked with more than 80 clients in manufacturing, agriculture and food, consumer goods and service industries. Eric joined Yuan Associates in 2005 and become a partner and managing director in 2011. As managing director, he is responsible for comprehensive government affairs service for and management of clients. As a partner his responsibilities include overseeing the firm’s daily overall operations. Prior to joining Yuan Associates, Eric worked as an account manager for Euan Barty Associates ... Read More