GOOD MORNING FROM LONDON
A significant change in US policy to China was signalled yesterday when US Commerce Secretary Gina Raimondo said the Biden administration would push for American companies to trade with China even as Washington takes an increasingly tough posture on Beijing over human rights and national security. “There’s no point in talking about decoupling,” Raimondo told reporters on Monday. “As the President has said, we have no interest in a cold war with China. It’s too big of an economy — we want access to their economy, they want access to our economy”.
“De-Coupling from China” has been the policy pushed by China’s opponents. Isolate China. Cut ties to China. Restrict, impede, contain China’s economic development. In this way, the West hoped to hurt China and force a change of policy in Beijing that would head off China’s rise to #1 Economic Power in the World.
And now there is a significant US admission that De-Coupling Does Not Work. The West has to find a different way to live and work with China. The US has failed because US Politics and US Business clash. The West wants more of China, not less. Its Business Leaders want closer relationships with China – it is an economic priority and such a policy fundamentally contradicts with De-Coupling. So De-Coupling is Out. Will the UK follow?
Raimondo’s remarks come as political tensions between Washington and Beijing continue re Taiwan, Xinjiang, Hong Kong and the S China Sea, and the US commerce department has continued to place Chinese companies on the so-called entity list, meaning US companies require a licence to sell them sensitive technologies.
“I am working and will continue to work with the administration to hold China accountable,” she said, adding that she was “clear-eyed” about what is a “complicated relationship”.
The Penny is beginning to Drop in Washington. On the trade and economic side confrontation does not work. Looking forward we will have to see whether the US will continue a policy of confrontation on the political side. Changes are always happening