China Shows Signs of Softening Hawkish Stance Against the US Amid Trade Pressure: Experts

China Shows Signs of Softening Hawkish Stance Against the US Amid Trade Pressure: Experts
U.S. treasury secretary Janet Yellen attends a roundtable with business leaders in southern Chinese city of Guangzhou on April 5, 2024. (Pedro Pardo / AFP via Getty Images)
4/8/2024
Updated:
4/9/2024
0:00

As the United States continues to demand fair trade in its talks with Beijing, experts say that China’s recent actions show signs of a softening stance.

U.S. Treasury Secretary Janet Yellen visited China from April 3–9, calling for the Chinese Communist Party (CCP) to provide American businesses with “a level playing field” and criticizing China’s “coercive” trade practices.
Ahead of Ms. Yellen’s visit, U.S. President Joe Biden spoke with Chinese leader Xi Jinping on the phone on April 2. According to a White House statement, President Biden raised ongoing concerns about China’s “unfair trade policies and non-market economic practices, which harm American workers and families.” He emphasized that the United States would continue taking necessary measures to ensure its advanced technologies are not used to compromise national security.

The Chinese dictator, meanwhile, complained about U.S. economic, trade, and technological pressures, stating that the growing list of sanctions is not about managing risks but creating risks.

President Biden also stressed the importance of maintaining peace and stability in the Taiwan Strait and freedom of navigation in the South China Sea. Xi, on the other hand, emphasized the importance of the talks being based on stability and trust.

On her return, Ms. Yellen said the relationship between the two countries is on “stronger footing than this time last year.”

Restrictions in High-tech

Independent Chinese analyst and Epoch Times contributor Zhuge Mingyang said, “The CCP is isolated by the United States in cutting-edge technology and restrained by the strong military deterrent from invading Taiwan.”

Further, he said, China’s threatening actions in the South China Sea and its support for Russian aggression have had an isolating effect that will have lasting consequences."The CCP urgently needs to ease tensions with the United States, but regardless of Xi Jinping’s concessions, it will not change the global trend of confronting communist China.”

Chinese-Canadian journalist and human rights activist Reimonna Sheng suggested that Mr. Biden’s timing for the call is strategic. “The CCP faces insurmountable political, economic, and social challenges. To guard against the CCP’s desperation and risky moves, Biden needed to warn them personally to exercise restraint and avoid escalating global crises,” she told The Epoch Times.

The press releases issued by Washington and Beijing after the call displayed significant differences in tone. CCP mouthpiece Xinhua’s press release claimed that Mr. Biden “reiterated that the United States does not seek a new Cold War, nor does it seek to change China’s system,” a statement absent from the White House text.

On April 4, the Department of Commerce’s updated semiconductor export control regulations officially took effect. The updated regulations included stricter controls on manufacturing-related equipment such as extreme ultraviolet (EUV) masks and semiconductor etching equipment and clarified the scope of AI chip licensing requirements. The measures are part of what Xi Jinping referred to as the “growing list of sanctions.”

U.S.-based Chinese independent scholar and political commentator Wu Zuolai told The Epoch Times he believes the United States will continue to pressure the CCP in high-tech areas, including chips and related equipment and materials.

“Of all the items sanctioned against the CCP, banning high-tech exports is a lethal blow because it delays the CCP’s advancement towards its fifth industrial revolution, namely artificial intelligence,” he said.

The “fifth industrial revolution” refers to an emergent phase of industrialization with AI being a key element, incorporating the notion of a deeper collaboration between humans and AI.

Mr. Wu believes that the CCP is clearly at a disadvantage in its confrontation with the United States. The goal of the United States is to keep China’s economy and industry at a low level while choosing to sever ties in the high-tech areas, he said.

In addition to putting export controls on high-tech products, Mr. Wu believes that the United States will also use tariffs to restrict the import of Chinese goods such as drugs, electric vehicles, and solar energy.

A worker produces semiconductor chips at a workshop in Suqian, in China's eastern Jiangsu province, on Feb. 28, 2023. (STR/AFP via Getty Images)
A worker produces semiconductor chips at a workshop in Suqian, in China's eastern Jiangsu province, on Feb. 28, 2023. (STR/AFP via Getty Images)

Xi’s ‘Red Line’ on Taiwan

Xi insists that the Taiwan issue is an inviolable “red line,” while Mr. Biden reiterated the consistent stance of the United States and emphasized the importance of maintaining peace and stability in the Taiwan Strait.

On April 3, the day that a strong earthquake shook Taiwan, China dispatched 30 military aircraft and 9 warships to Taiwan. Chinese military aircraft entered northern Taiwan’s air defense identification zone or crossed the median line of the strait about 20 times, setting a record for the Chinese military’s provocation of Taiwan this year.

Mr. Zhuge said that he feels the CCP lacks the courage to invade Taiwan by force. The provocative actions are “merely to show off and intimidate Taiwanese people,” he said, adding, “They'll likely continue this even after Taiwan’s new president’s inauguration.” Taiwan’s president-elect Lai Ching-te will be sworn in next month.

Mr. Wu believes that the CCP has no advantage in the Taiwan Strait. Although the situation appears tense, it is essentially a tactical stalemate, he said, downplaying the “red line” as a means of diverting domestic crises and inciting ultranationalist sentiments.

In a bid to ease relations with the West, in recent months China has lifted its anti-dumping and anti-subsidy tariffs on certain products, most recently on Australian wine, ending years of punitive levies on the imports.
Despite the apparently softened stance, Ms. Sheng said: “The CCP rules with terror and violence, based on its communist ideology. Some Western countries, driven by profit, still hope to establish some form of strategic partnership with the CCP, which is wishful thinking.”

TikTok Ban

Among the issues likely worrying Beijing is a proposed U.S. ban on TikTok.  The issue came up during Ms. Yellen’s visit to China: “We discussed it briefly,” the treasury secretary said.

White House national security communications adviser John Kirby told reporters April 3 that Xi had raised the issue in the phone call between the two leaders.

Mr. Kirby said President Biden made it clear that “this was not about a ban on TikTok, that this was about divestiture, that this was about preserving the data security of the American people and our own national security interests.”

Although the House of Representatives proposal to ban TikTok has not yet received a vote in the Senate, President Biden previously stated that if the bill reaches his desk, he will sign it.

Xin Ning contributed to the report.