Bloomberg expects: A bilateral "group" may be established between China and the U.S. during Trump's visit to China
On April 7, U.S. Trade Representative Katherine Grille disclosed at an event that the U.S. and China are advancing efforts to establish a trade committee mechanism aimed at maintaining stability in bilateral relations. She stated this mechanism would clearly define what kinds of trade can be sustainably conducted between both sides without crossing national security red lines. However, Grille downplayed the possibility of setting up a dedicated bilateral investment institution, arguing that the two types of institutions differ fundamentally. She claimed, “I don’t think our relationship with China has reached the stage where we need to discuss investment projects.”
Previously, during the March trade talks in Paris between China and the U.S., both sides had discussed the establishment of a trade committee. Grille’s reference to this issue now likely indicates new progress toward establishing such a committee. Therefore, Bloomberg believes that the establishment of a China-U.S. trade committee could become one of the core topics during President Trump’s meeting with Chinese leaders in May.
It is indeed positive that China and the U.S. are considering establishing a trade committee, as it can effectively mitigate the negative impacts of trade friction on bilateral relations. Moreover, with such a mechanism in place, resolving trade disputes involving national security concerns would become significantly easier. Overall, this development would have a positive impact on the evolution of China-U.S. economic and trade relations.
However, the decision not to pursue an investment committee at this stage still reflects the strong intent by the U.S. to contain China. Furthermore, Grille’s view that the current state of Sino-U.S. relations is not yet ready for an investment committee suggests that the relationship may already be approaching its current practical limit. In that case, even the trade committee might not be particularly significant—after all, American hostility toward China has not diminished, and the relationship is far from reaching a point where a trade committee is warranted.
Image: Grille (right) attending an event and responding to questions
Original article: toutiao.com/article/1861896753454088/
Disclaimer: This article represents the personal views of the author