US-China Relations Under Biden Administration Off to a Shaky Start

US-China Relations Under Biden Administration Off to a Shaky Start
TradeGM Analysis date_range March 19th, 2021

The first high-level talks between the United States and China since President Joe Biden took office are off to a rocky start. What was originally planned to be a four-minute photo session quickly descended into a back-and-forth of accusations and counterattacks that lasted well over an hour. Both sides repeatedly calling the reporters back into the room so they could add their rebuttals.

This departure from traditional diplomatic protocol is illustrative of the deep divide that remains despite the change of leadership in the White House. Any prediction that Biden would take a more measured approach towards diplomacy with China was crushed yesterday. Not to mention that Biden has not repealed a single one of Trump’s policies regarding China as of yet.

What were the accusations?

In a frank and direct opening statement, the newly appointed Secretary of State, Antony Blinken, said the US would “discuss our deep concerns with actions by China, including in Xinjiang, Hong Kong, Taiwan, cyber-attacks on the United States, economic coercion of our allies”. He further added that “Each of these actions threaten the rules-based order that maintains global stability”.

However, China argues that matters relating to Hong Kong, Taiwan, and Xinjiang are subject to domestic and not foreign policy and expects all foreign powers to stay out of its internal affairs.

In response, Yang Jiechi, director of the Central Foreign Affairs Commission of the Chinese Communist Party, fired back that the United States does not represent global public opinion. He further elaborated that as far as cyber-attacks are concerned, the US is the leading “champion”.

“We believe that it is important for the United States to change its own image and to stop advancing its own democracy in the rest of the world,” he said. “Many people within the United States actually have little confidence in the democracy of the United States.” citing the killing of black Americans and the Black Lives Matter movement.

National Security Advisor Jake Sullivan responded to Jiechi by saying that “a confident country is able to look hard at its own shortcomings and constantly seek to improve, and that is the secret sauce of America.”

Was it all just for show?

Despite all the posturing and grandstanding that the two parties exhibited (and accused one another of), a senior U.S administration official who wished to remain nameless said that earlier talks that were held in private were “substantive, serious and direct.”

The two delegations will meet again on Friday after concluding the second of three planned closed-door sessions.

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. Ebrókerház Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information.

The clients of eBrókerház Befektetési Szolgáltató Zrt. open orders through the Trade GM Trader Online Trading Platform, the orders will be forwarded to an execution venue defined in our Execution Policy. Trade GM Trader Online Platform is operated by eBrókerház Szolgáltató zrt, which is authorized and regulated by the Hungarian National Bank under the licence numbers III/73.059/2000. and III/73.059-4/2002.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The materials contained on this page are for advertising and marketing purposes only and should not in any way be construed, either explicitly or implicitly, directly or indirectly. as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. You should make sure that you have sufficient time to manage your investments on an active basis. CDF are derivative financial instruments, which price is derived from the price of the underlying asset or contract to which the CFD refers (for example currencies, commodities, indices, equity, etc.). Derivative financial instruments and related markets can be highly volatile. The prices of CFDs and underlying instrument may fluctuate rapidly over wide ranges and may reflect unforeseeable events or changes in conditions, none of which can be controlled by the client or eBrókerház Befektetési Szolgáltató Zrt. Prices quoted or information may vary and change depending on market conditions. When investing in Company’s Products denominated in a currency other than that of the state in which you reside, the return may increase or decrease as a result of currency fluctuations. Any indication of past performance or simulated past performance included in an advertisement is not a reliable indicator of future results. All names, pictures and personal details of people depicted as traders in advertisements concerning past performance are included for presentation purposes only, and are not the actual traders who have made the transaction detailed in the advertisement (actual details are kept for privacy purposes). All opinions expressed by traders are not actual testimonials but rather are depictive of the actual past performance and trading experience. Any trades depicted are selected from past real successful trades and are not reliable indicator of all customers past or future trades.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. X