“Trade with China will decrease, but that is not decoupling.”
JP Morgan Chairman Jamie Dimon, who visited Shanghai, China on the 31st, said in an interview with Bloomberg TV, “(The relationship with China) is much more complicated. As President Joe Biden (US) or Treasury Secretary Janet Yellen (US) said, it is only derisking (risk removal), not decoupling,” he emphasized.
Chairman Dimon came to Shanghai to attend the Shanghai ‘JP Morgan Global China Summit’. It is his first visit to China in four years. It is the first time that a global investment bank has held an investment seminar in mainland China since the confirmation of Chinese President Xi Jinping for a third consecutive term in October last year.
The day before, Tesla CEO Elon Musk visited Beijing and met with Foreign Minister Qin Gang. According to the announcement of the Chinese Foreign Ministry, Musk said, “The interests of the United States and China are intertwined like Siamese twins and cannot be divided. Tesla is against decoupling.”
Analysts say that the remarks of Chairman Dimon, who is the head of the overwhelming number 1 US bank and worked hand-in-hand with Treasury Secretary Yellen to resolve the banking crisis, reflects the US government’s policy on China. It is a strategy to exclude China in high-tech fields such as semiconductors and artificial intelligence (AI), but to continue exchanges in other fields.
When Minister Yellen announced the three principles of China’s economic policy in April this year, she said that “security takes precedence over the economy,” but that “decoupling is a disaster, and economic exchanges continue.” Then, at the G7 summit in Hiroshima last month, the term derisking, which lowered the level of decoupling, was used for the first time.
CEOs of major US companies are also flocking to China, which has started reopening (reopening) in earnest after the novel coronavirus infection (Corona 19). In March and April, Apple CEO Tim Cook, Intel CEO Pat Gelsinger, and Starbucks CEO Howard Schultz visited China. It is interpreted as the purpose of minimizing losses in China, the largest market, and forming relationships with new officials after Xi Jinping’s third consecutive term is confirmed. Chairman Dimon said, “Even if trade with China decreases, it takes time.” “(JP Morgan) will remain in China in good times and bad times.”
Tesla, which makes more than half of all electric vehicle production at the Gigafactory in Shanghai, China, announced additional investment. It is in a situation where it has to compete with Chinese domestic electric vehicles and protect the market. Barrons, an American economic media outlet, analyzed that “at a time when tensions between the United States and China are rising, Western CEOs are doing their best to walk on the borderline (not to be biased towards either side of the US or China).” Dan Ives, a Wedbush analyst, also analyzed, “Teslana and Apple are walking a tightrope because of the large proportion of China, which is important in both supply and demand.”
It is interpreted that China, whose economic rebound is slower than expected after the reopening, is also adopting a ‘cool cold politically, warm economically’ attitude. China welcomed the US CEOs and held talks with US commerce and trade ministers, but refused to hold talks at the defense minister level.
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.