World traders were anxiously watching the United States Commerce Secretary’s visit to Beijing this week, hoping for signs that the increasingly heated relationship was cooling.
Escalating tensions and ill will between the U.S. and China have seen trading relations decline between China and the democratic states of the West. Canadian farmers were directly affected when China blocked virtually all Canadian canola after the 2018 arrest of Chinese businessperson Meng Wanzhou.
The fact of the visit encouraged those, including exporters hoping to gain better access to the huge China market. Many hoped that geopolitical tensions could be restricted to specific sectors while most trade could be unimpeded.
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“Secretary (Gina Raimondo) discussed opportunities to promote economic exchange where it aligns with U.S. interests and values,” said the official U.S. government summary of Raimondo’s Aug. 28 meeting with her Chinese counterpart, Wang Wentao.
“She underscored the importance of levelling the playing field for U.S. workers and businesses and ensuring the fair and transparent treatment of U.S. companies in China.”
Since the former U.S. President Donald Trump began a trade war with China by hitting Chinese products with numerous duties and restrictions, anti-China feeling has soared in the U.S. and many western nations.
U.S. Republicans and Democrats have supported restrictions on Chinese access to sensitive technologies such as semiconductor manufacturing equipment and resistance to Chinese purchases of companies and vital commodities has spread to Canada, Europe and many of China’s neighbours.
That has snarled many international supply chains, helping create the inflationary problem vexing most western economies. It also frustrates those who hope to export more to China, including many of Canada’s grain, meat and other agricultural producers.
China’s willingness to meet with Raimondo was seen as a positive sign that China’s government might be hoping to reduce tensions as its domestic economy is slumping.
Youth unemployment has soared, its important property market is under intense pressure as investors back away from what is perceived as an overpriced sector, and the country’s aging workforce is beginning to worry investors.
