The Democratic candidate Joe Biden’s victory in the US presidential election has ushered in new hopes and possibilities in among businesses not only in the USA but all across the globe. There might be some improvements in the US-China relations. Business world can expect new opportunities as a natural outcome of an improved relations between these two countries.
We can expect that under the presidency of Biden, Chinese-U.S. ties, which are currently under extreme duress, are likely to become better. 2021 offers an excellent chance for the new government to engage in a constructive engagement with the China and reenergize the business sector dwindling from the effects of global Corona pandemic. Biden and many in Washington may feel a renewal of the U.S.’s China strategy will reshape the economy.
China has a long history of sending subtle signals to start new diplomatic conversations. Biden administration should respond positively if any such offers come from China or they should make an attempt to set the Sino-American relationship on a more positive path. Bernstein analyst Doug Harned expects spending priorities to be similar under either Biden or Trump because global threats are high, and building more planes and ships is a way to preserve U.S. jobs and jolt the economy. Biden is widely expected to raise corporate taxes in line with his plan of hiking the rate to 28% from 20% currently.
On China, it is thought that Joe Biden will continue the tough line on trade as his predecessor. But he will deal with the matters in a different way. Rather than trying to bullying allies as Trump did, he is expected to treat disputes rather intelligently. Biden has railed against Trump’s trade war, and he could roll back many of the tariffs the Trump administration implemented. This is the aspect businesses are looking for.
China’s State mouthpiece the Global Times said in an article that a Biden presidency could “usher in a ‘buffering period’ for already-tense China-US relations, and offer an opportunity for breakthroughs in resuming high-level communication and rebuilding mutual strategic trust between the two countries.”
China might, of course, try to find advantage in Joe Biden’s willingness to seek co-operation on big issues like climate change. IT stocks all across the world surged as the Democrats win the US elections, considered more liberal on immigration, foreign policy, international trade and climate change. Entire segments of the economy that have yet to recover from the initial outbreak of the virus — including the travel, IT and hospitality industries — are expected to grow under the Biden government.