China’s apparent “recovery” from the coronavirus pandemic could spell good news for American businesses, according to a top Trump administration official who nevertheless characterized Beijing as a major “military” threat.
“China continues to be both the largest potential market and the principal military and economic threat in the region,” Commerce Secretary Wilbur Ross said Tuesday. “Nonetheless, we’ve negotiated the phase one agreement that deals with some of our bilateral issues.”
A trade war with China dominated President Trump’s economic agenda over the last four years, as he sought leverage for an economic deal that culminated in an initial pact in January. The emergence of the coronavirus pandemic derailed subsequent talks due to anger over the Chinese Communist regime’s censorship of early warnings about the contagion, but Ross struck an optimistic note about the bargain.
“Now that China has announced its recovery from the pandemic, we hope they, as a result, will meet the phase one, two-year targets,” Ross said in a recorded message to the Milken Institute’s 2020 Asia Summit on Tuesday.
That comment points to an economic priority of the Trump administration that could persist into President-elect Joe Biden’s tenure, in parallel with the consensus that Beijing is waging “a cold war” against the United States and its democratic allies.
“The party today wields its economic power to co-opt and coerce countries around the world; make the societies and politics of foreign nations more accommodating to CCP specifications; and reshape international organizations in line with China’s brand of socialism,” the State Department’s in-house think tank warned in “The Elements of the China Challenge,” an assessment published last month. “At the same time, the CCP is developing a world-class military to rival and eventually surpass the U.S. military.”
Chinese officials have urged American business officials to lobby Biden’s administration to stabilize the relationship between the two countries, in the face of the deepening distrust felt by political and national security leaders.
“Strategic researchers, business, and industry representatives are all encouraged to enhance dialogue and communication, pushing forward bilateral ties,” Chinese Foreign Minister Wang Yi suggested this week. “American businesses should play an active role in stabilizing a healthy relationship.”
Ross acknowledged the need for distrust of Beijing, touting Commerce Department efforts to restrict China’s access to sensitive American technology. Yet he also credited Beijing with implementing “50 of the 57 technical commitments” made in the phase one trade deal, as well as purchasing “over $23 billion of the agreed target for agricultural products” contemplated in the initial pact.
“That’s around 70% of the agreed total,” he said. “But, unfortunately, they have purchased lesser percentages of other items.”
