Sino-American Relationship on A More Positive Path Under Joe Biden

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.

Suing a Chinese Company

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.

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China Easing Quota on the Import of Foreign Films

Foreign movies that could be shown in Chinese theaters on a revenue basis had to go through a quota system since 1994. In China, the foreign film imports are limited to 34 a year and the foreign studios are only allowed to keep 25% of the Chinese box office revenue. Originally, the quota started at 10 per year in 1994, in 2002, as China prepared to enter the World Trade Organization, the quota was increased to 20 films per year, and in 2012, it rose again to 34 films annually, 14 of which were to be screened in 3D or IMAX formats.

But recently China is quietly allowing more foreign films to be imported as a part of a trade pact with the United States. China’s propaganda ministry (now in charge of all media-related activity in China) has relaxed the cap of annual quota of 34 films to 38 in a bid to boost the Chinese box-office returns. In a government document provided to the U.S. delegation in Beijing, Chinese negotiators said that opening up the market more for U.S. movies was a concession China could offer to Washington as part of a broader trade deal. 40 films per year can be imported on a flat-fee basis, in which Chinese companies license them for foreign distribution but do not give studios a cut of box office. The share of box-office revenue that U.S. distributors are entitled to take will move from the current 25 percent toward the international average of 40 percent, “although it might not be as large as the previous 12 percentage points increase,” Huang Guofeng, an analyst from Beijing-based consultancy Analysys International, allowed.

China’s film industry is still less developed than the mature markets of Europe or some others in Asia. This is the primary reason why China has become the biggest single export market for U.S. films. Hollywood could play a pivotal part in the massive expansion of the Chinese multiplexes and movie industry. China’s decision to increase the number of foreign film quota is a promising sign for the Hollywood movie industry.

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