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Meeting of Biden and Xi. Do the United States and China need each other?


Kasım, 13 2023
watermark Economic news

On the eve of Xi Jinping's visit to the APEC forum, an «inconvenient truth» comes to the surface – the United States and China need each other. The economic confrontation between the two countries has an impact on both sides, and it is time to recognize the need for de-escalation.


China's interests. China is interested in economic stability and the inflow of foreign investment, which is becoming especially relevant in the context of a slowdown in economic growth. The annual volume of trade between the countries, amounting to $760-800 billion, and an investment portfolio of $1.8 trillion emphasize the depth of economic ties.


US interests. The United States, facing high inflation and doubts about the effectiveness of the Biden administration's economic policy, is also interested in resuming dialogue with China. Economic cooperation with China can help the United States solve internal problems, given the mutual dependence of the economies.


Nevertheless, the issue of Taiwan's status remains one of the main stumbling blocks in relations between the countries. The United States continues to support Taiwan, including with military supplies, against the background of China's increasing activity in the region, which creates tension in bilateral relations and a vicious circle of conflict.



    






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