No Decoupling! Biden Pledges to Transform U.S.-China Economic Relations

Stable U.S.-China relations are good for the world
There is a significant gap in fair competition and intellectual property protection

President Joe Biden of the United States suggested that he will not attempt to sever economic ties with China. Also, he will continue implementing export control measures to prevent security threats such as dual-use technology.

According to Bloomberg News on the 16th (local time), President Biden said during a conversation with the CEOs of the Asia-Pacific Economic Cooperation (APEC) in San Francisco, “The U.S. government is not pursuing decoupling (economic separation) in its economic relations with China, but is reducing risks and diversifying.”

Furthermore, he explained, “Stable relations between the world’s first and second-largest economies are good not only for the two countries’ economies but also for the entire world.” He emphasized that the U.S. does not seek conflict with China, a point he also made in his meeting with President Xi the day before. In particular, the two countries have agreed to cooperate on critical global issues such as climate change, artificial intelligence (AI), and drugs.

Challenges in Fair Competition and Intellectual Property Protection

However, he also highlighted, “There is a significant gap between us and China in maintaining fair economic competition and protecting intellectual property. We will continue to resolve this issue with wise policies and strong diplomacy while taking targeted measures to protect our critical national security interests.” This means that the current U.S. export controls and investment restrictions taken for national security may continue and be strengthened.

President Biden and President Xi had a face-to-face meeting for the first time in a year the day before to discuss bilateral relations and global issues. The two agreed on the resumption of high-level military talks and crackdown on fentanyl suppliers through the meeting, which lasted about four hours. President Biden evaluated the meeting results as “the most constructive and productive dialogue so far.”

By. Byeon Hyo Sun