【By Observer Net, Wang Yi】According to a report by Reference News on July 27, senior executives from several American companies, including Boeing, will visit China this week. This is the highest-level business delegation from the United States to China since President Trump of the US initiated a new round of tariff war in April this year.

This visit is organized by the US-China Business Council (USCBC), with Rajesh Subramaniam, Chairman of the Board of the USCBC and President and CEO of FedEx Group, leading the delegation.

The report said that it is currently unclear which companies' executives will be included in the visit or the specific itinerary, but both sources stated that some executives from Boeing and the president of the USCBC, Sean Stein, have been confirmed to join the trip to China.

"They are expected to meet with Chinese officials and possibly restart commercial negotiations," one of the sources said.

The sources said that the Boeing executives will focus on discussing aircraft sales. During the company's visit to China with Trump in 2017, it secured an order worth $37 billion for 300 planes from Chinese enterprises. However, due to the tariff war initiated by the US, the delivery has faced repeated delays.

In late April this year, the Chinese Ministry of Commerce condemned the US for wielding tariffs, severely impacting the stability of the global supply chain, disrupting the international aviation transport market, and making it difficult for many enterprises to conduct normal trade and investment activities. Chinese airlines and the US-based Boeing were deeply affected.

A spokesperson said that China and the US have maintained long-term mutually beneficial cooperation in the civil aviation field, which has effectively promoted trade and people-to-people exchanges between the two countries. China is willing to continue supporting normal commercial cooperation between enterprises of the two countries and hopes that the US side will listen to the voices of enterprises and create a stable and predictable environment for their normal trade and investment activities.

Boeing Aircraft

USCBC was established in 1973 and consists of more than 270 American companies doing business in China. It is a non-governmental, non-partisan, and non-profit association. The association often organizes visits by business executives to China. In July last year, at the invitation of the China Chamber of Commerce for Import and Export, USCBC organized a visit to China by senior executives of well-known American multinational corporations such as Micron, Goldman Sachs, Apple, and Boeing.

Currently, the USCBC has not responded to the relevant reports, but if it goes ahead, this will be the highest-level visit by a US business delegation to China since the new round of tariff war began in April this year.

At the same time, China and the US will also hold a new round of economic and trade talks this week. On July 23, the spokesperson for the Ministry of Commerce of China stated that after consultation between the two sides, Chen Liufeng, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council, will go to Sweden on July 27-30 to hold economic and trade talks with the US side.

On the day before, the US Treasury Secretary, Brian Deese, said he would hold the third round of trade negotiations with Chinese representatives in Stockholm on July 28 and 29. He revealed that the purpose of this negotiation is to extend the "tariff truce" that is about to expire on August 12, while discussing a series of issues such as China's oil transactions with Russia and Iran.

US Treasury Deputy Secretary Wally Adeyemi said that the negotiation topics will cover China's export control of rare earths, market access issues, and overall tariff levels. Commerce Secretary Gina Raimondo also revealed that the operation model of the short video application TikTok in the US will be part of the discussion, but the core issue remains how to open up each other's markets.

China said that the two sides will continue to consult on economic and trade issues of mutual concern.

Market generally expects the two countries to extend the "tariff truce" and strengthen economic and trade relations. This is also the common expectation of American companies in China. A survey conducted by the USCBC on July 16 among 130 member companies showed that tariff issues have become their second biggest concern. Although there are challenges in the relationship between the two countries, the Chinese market remains a key factor for American companies to maintain global competitiveness.

The report said that in the economic and trade consultations, the main demand of American companies is to reduce tariffs. Nearly one-third of the surveyed companies admitted that they lost Chinese market share in the past three years, and three-quarters of them expect to lose market share in the coming years. As American companies continue to lose market share in China, China's industrial policies are promoting the rise of local enterprises, and the competition that American companies face in China will become more intense.

"Although most American companies have delayed new investments in the short term, they still remain committed to seeking opportunities in China in the long run," the USCBC pointed out. Over 80% of the respondents said that they invest in China to serve the domestic market, and almost all of them said that without Chinese operations, they would not be able to maintain global competitiveness."

Regarding the report by the USCBC, Gao Jiakun, spokesperson for the Chinese Foreign Ministry, said on July 23 that investing in China and achieving win-win results has become a general consensus among global investors. As of March this year, foreign enterprises have set up 1.24 million companies in China, with investments of nearly $3 trillion. While promoting China's reform and opening-up, they have generally obtained growth opportunities and received rich returns.

Data shows that new foreign-funded enterprises across the country achieved double-digit growth in the first half of this year. At the recently concluded third Chain Expo, the range of exhibitors expanded from 55 countries and regions in the first session to 75, with the number of American exhibitors increasing by 15% compared to the previous session, continuing to lead the list of overseas exhibitors. From the perspective of enterprise size, over 65% of the exhibitors are Fortune 500 companies and industry leaders. Foreign enterprises have cast their vote of confidence in the Chinese economy through their actions.

Gao Jiakun said that the recent measures taken by the Chinese government to encourage foreign investment reflect the sincerity and determination to promote high-level opening-up. We welcome enterprises from all countries, including the United States, to participate in the Chinese modernization process, and achieve greater achievements and better development in the process of integrating into high-quality development.

This article is exclusive to Observer Net. Reproduction without permission is prohibited.

Original: https://www.toutiao.com/article/7531988159240880674/

Statement: The article represents the views of the author and readers are welcome to express their opinions by clicking on the [Up/Down] buttons below.