The time is right for China, in some respects the largest global market, to normalise international relations. While the right interlocutor, for Beijing, takes office in Washington, so that from trade war we move to more constructive negotiations. In short, China says enough of the trade war.
And it recognises that the levels of imports of goods and services over the next 10 years will be high, approaching 22 trillion dollars. While analysts are betting that the Biden presidency will push the Chinese Communist Party into a new season of reform.
Enough of the trade war
President Xi Jinping himself said publicly that Chinese intents are relaxing. Speaking with a video message at the China International Import Expo (November 5-10) in Shanghai.
The leader of the CCP (pictured, Shutterstock) spoke of the need for a more constructive approach to the open economy. And not only that: he called for a step beyond protectionism’s season.
According to Reuters, Xi Jinping reassured the audience about Coronavirus, which China is monitoring, and the next steps the government will take. “With a population of 1.4 billion people and a middle class of over 400 million, China is the largest market with the highest potential – are his words -.
The country’s imports in the next 10 years should reach 22 trillion dollars”.
The relationship with the USA
People’s Republic is on the eve of Singles’ Day, a November event that, connecting to Black Friday and Cyber Monday, opens the season of discounts, and gives the measure of how much Chinese are willing to spend. In the year of the great pandemic, it is interesting to know the answer. Meanwhile, Xi Jinping knows that, in order to reach the opening he is talking about, it is important that Beijing relaxes its tone, eases restrictions and gives foreign companies the guarantees they require.
From China, on the other hand, they are certain that the Biden presidency, with its orientation towards diplomacy (and not towards a trade war), will push Beijing into a season of reform.
“Biden’s party represents the interests of large American corporations, hi-tech companies and financial companies,” comments to SMCP Sheng Liugag, professor in the Department of Economics at the Chinese University of Hong Kong. The logic is that of exchange between financial products and services.
“If China opens up – he concludes -, American banks will be able to penetrate, since finance is the strong weapon of the States”.