Biden Advocates Cooperation With China, Calls For Increased US Investment In Asia-Pacific

In a bid to foster stability between the world's economic giants, US President Joe Biden asserted the global expectation for improved management of competition between the United States and China. Following a significant meeting with Chinese leader Xi Jinping, Biden addressed the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, emphasizing the broader benefits of a stable relationship between the two largest economies.

"A stable relationship between the world's two largest economies is not only good for the two economies but for the world," Biden declared at the CEO session of the APEC summit on Thursday. Describing his discussions with Xi as "candid and constructive," Biden assured that the United States does not seek conflict with China, although he acknowledged existing economic tensions.

"We have real differences with Beijing when it comes to maintaining a fair and level playing field and protecting your intellectual property," Biden acknowledged while addressing corporate leaders. Despite these differences, Biden and Xi announced the resumption of military-to-military communications and agreements to jointly combat fentanyl trafficking after their meeting.

At a dinner with business executives, Xi expressed China's aspiration to be "a partner and a friend" to the United States. Similarly, Biden utilized the APEC forum to encourage US business leaders to increase their investments in the Asia-Pacific region, stressing the role of such contributions in promoting peace and stability.

"America's enduring commitment to the region has been a springboard - it's enabled growth, transformative growth, ensured the open flow of commerce, lifted millions of people out of poverty," Biden stated, referencing his recent visit to Vietnam and efforts to enhance engagement with Pacific island nations critical of perceived American neglect in the face of China's expanding economic influence.

Highlighting the economic ties, Biden noted that companies from other APEC economies had invested over $200 billion in the US since the start of his administration. This was partly influenced by green energy and semiconductor tax credits incorporated into Biden's economic programs. The White House reported that US companies have reciprocated, investing $40 billion in APEC economies in 2023, with 60% of American exports directed to fellow APEC members.

In addition to economic matters, the US president emphasized the importance of workers' rights during the summit, aligning with his domestic support for unions amid recent strikes in the automobile, healthcare, and entertainment industries. However, Biden's plans to unveil portions of a regional trade pact faced obstacles from Democratic lawmakers, including Senator Sherrod Brown of Ohio, who objected to the perceived lack of enforceable labour standards.

Deputy National Security Adviser Mike Pyle assured that negotiations on the Indo-Pacific Economic Framework's trade pillar would "continue in the weeks and months ahead." Biden reiterated the administration's commitment to securing worker protections in any trade deal, stating, "We have upheld our commitment to unions; each of the framework pillars includes strong pro-labour outcomes." As discussions continue, the world watches to see how the US and China navigate their complex relationship and the potential impact on global economic dynamics.

*Inputs from Bloomberg*