In a bid to avoid a trade war with the United States, China’s Ambassador to the U.S., Xie Feng, expressed China’s reluctance to engage in tit-for-tat actions during the Aspen Security Forum. Stating that they do not desire a trade or technological war, the Chinese ambassador emphasized their wish to transcend the barriers of the past, seeking to bid farewell to both the Iron Curtain and the Silicon Curtain.

Challenging Tech and Trade Curbs

China’s criticisms were directed towards the U.S. restrictions on the sale of microchips and chipmaking equipment to the country, which were imposed by the Biden administration last year. Ambassador Xie Feng deemed the U.S. definition of competition as unfair and accused the nation of trying to hinder China’s progress in various sectors, citing the limitations on technology sales to Chinese telecommunications giant Huawei due to security concerns.

Strained Relations and Bilateral Dialogues

Tensions between the U.S. and China have strained bilateral relations in recent times. However, both nations have made efforts to initiate dialogues. U.S. special envoy on climate, John Kerry, concluded talks with Chinese officials, while Treasury Secretary Janet Yellen visited Beijing earlier in July.

Contagion Risk and Chinese Economic Slowdown

During her visit, Janet Yellen warned of potential contagion risks arising from the slowdown in the Chinese economy. Despite this concern, she maintained a positive outlook for the U.S. economy, stating that a recession in the country is unlikely this year. New data revealed that China’s gross domestic product grew at a rate of 6.3% in the three-month period from April to June, largely impacted by falling exports, weak consumer spending, and a prolonged downturn in the property market.

Impact on Global Economy

Yellen highlighted the significance of strong Chinese growth for promoting economic growth in other countries, particularly in Asia. She pointed out that slow growth in China could have negative spillover effects on the United States. However, she also reassured that the U.S. labor market remains robust.

China’s Call for Stable Relations

In light of the tensions, Ambassador Xie Feng emphasized China’s eagerness to maintain a stable and healthy relationship with the United States. He suggested that immediate improvements could include increasing the number of passenger flights between the two nations and renewing their cooperation agreement on science and technology.

The Path Forward

China’s stance indicates its willingness to avoid an escalation of conflicts and seek common ground with the United States. Despite the challenges posed by the tech and trade curbs, both nations have taken steps towards dialogue, recognizing the importance of stable relations in a globalized world. The future trajectory of their relationship remains uncertain, but the diplomatic efforts on both sides offer a glimmer of hope for a more cooperative and prosperous future

Download our app MadbuMax on the Apple App Store for the latest news and financial tools. Interested in getting your finances in order do not forget to check Dr. Paul Etienne’s best-seller book on personal finance. To access more resources, tools and services please click here. Also do not forget to follow Dr. Etienne on IG or Twitter.