In the Year 2021, A New Window of Hope is Opening in the US-China Relationship

A change in the presidency and the arrival of Joe Biden as the US president are indicating a strong bilateral tie. The new US administration is aiming to create a new type of relationship with China that is closer to the demands of the 21st century.

Sino-American ties plunged to historic lows under the administration of President Donald Trump, with the two clashing over trade, tech and Beijing’s increasing assertiveness in the South and East China seas and over self-ruled Taiwan. The new US administration is aiming to create “a new type of relationship with China that is closer to the demands of the 21st century.”

In spite of the Huawei incident, it is quite unlikely that China will go after every foreign firm. There is no incident reported that suggests even a single US or European company has been told to close down their operations from China. The former US President Donald Trump wanted to lower the trade deficit by imposing tariffs, making Chinese imports expensive.

 

But the change in the presidency and the arrival of Biden as the US president are indicating a strong bilateral tie. Biden said partnering with other democracies on China would “more than double” the US economic leverage over the country.

 

On any issue that matters to the US-China relationship, Biden said, “We are stronger and more effective when we are flanked by nations that share our vision for the future of our world.”

 

“Biden’s policies will be about returning to multilateralism, returning to international organizations, and returning to the status of fighting without splitting,” Chen Wenling, chief economist at the China Centre for International Economic Exchange.

 

Chinese Foreign Minister Wang Yi has previously suggested Beijing would be open to restarting its relationship with the US following November’s election, declaring the two countries to be at a “critical historical juncture” after a year of escalating tensions.

 

The way to maintain an equilibrium in relations, both seem to agree, is to balance competition and cooperation. According to Bloomberg Opinion- “to have any chance of managing such frictions, the U.S. and China first need to set the boundaries of their competition and build realistic expectations for cooperation. That’ll require both Biden and Xi to take some political risks.”

 

“China-US relations have come to a new crossroads, and a new window of hope is opening,” said Wang, who is also a State Councilor, told the state-run Xinhua news agency in an interview.

Share with friends:

China’s Support Policies for Domestic & Foreign Businesses in the Covid-19 Pandemic Era

China’s central and local governments have been rolling out a series of supporting policies to shore up the confidence of businesses and ease some of their compliance burdens. For eligible SMEs, financial institutions will be encouraged to provisionally defer their principal loan repayments.

 

To cushion the economic hit caused by the COVID-19 outbreak, China’s central and local governments have been rolling out a series of supporting policies to shore up the confidence of businesses and ease some of their compliance burdens. Businesses in China, including foreign-invested enterprises (FIEs), can leverage these special policies to overcome the difficulties caused by COVID-19.

 

In 2020, we see opportunity and fast development in capital markets, investment, insolvency and restructuring, IP, anti-trust and dispute resolutions. Since people are adopting the remote life and working style, data protection and compliance requests soar, attracting lots of attention.

 

 

The state council executive meeting, 18th of February, 2020

Phased reduction and exemption of corporate social insurance fees and implementing the policy of payment delaying of housing fund by enterprises: “In order to reduce the impact of the epidemic on enterprises, especially small and medium-sized enterprises, in all provinces except Hubei province from February to June, small and medium-sized enterprises can be exempted from endowment insurance, unemployment insurance and industrial injury insurance, and from February to April, large enterprises can be reduced by half; Hubei Province can be exempted from February to June for all kinds of insured enterprises. At the same time, before the end of June, the enterprise can apply for delaying the payment of housing provident fund. During this period no overdue treatment will be made for the provident fund loans that the employees fail to repay normally due to the impact of the epidemic.”

 

State Council: Introducing Strong Financial Measures to Help Smaller Firms Resume Production and Operation (CN/EN) The State Council executive meeting on February 25, 2020 unveiled a string of measures to support SMEs. For eligible SMEs, financial institutions will be encouraged to provisionally defer their principal loan repayments. Their interest payments can be deferred to June 30, with penalty interest payments exempted.

 

Employment Matters

Since the outbreak of severe acute respiratory syndrome coronavirus 2 (“COVID-19 virus”) and the adoption of response measures by government authorities at national, provincial, and municipal levels, manufacturers have probably most focused on employment issues, such as the resumption of work, levels of compensation, and, sometimes, layoff options. Over the past six weeks, PRC authorities at the national and local levels have issued guidance for employers with respect to the resumption of work and the entitlements of employees. On January 24, 2020, the Ministry of Human Resources and Social Security issued the Notice on Labor Relations under the COVID-19 Situation (the “Labor Notice”)

 

In essence, the pandemic won’t reshape international relations, but it will accelerate history. Besides the impact of COVID-19, we should fully realize the pressure from the structural competition between China and the U.S. and the bump of deglobalization and respond accordingly.

 

Share with friends: