China Economy May Face Risks Under Biden Administration

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Friction between the US and China continues to increase under President Donald Trumps’s administration. This owes to Beijing’s human rights violations and keeping vital Covid-19 related secrets. According to a leading economist, this relation may worsen under the Biden administration that is going to take over next January.

David Li Daokui is a professor at Tsinghua University and is a former advisor to the central bank of China. A South China Morning Post report had the professor warning the economic planners about Biden’s approach to the Chinese issue. According to him, economic planners should not rule out the possibility of Trump coming back in 2024. He also added that President-elect Joe Biden may also “continue Trump’s hard-line approach to China.”

At the China Macroeconomy Forum, Li Daokui talked about the risks that the Chinese economy may face next year. He said, “If you ask me what are the risks facing the Chinese economy next year … Number one, will Biden introduce restrictive policies that are precisely targeted at certain China’s industries? That remains a question mark.”

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Furthermore, he added that China’s foreign policy, certain industries, and certain companies are highly probable to face some risks in the coming year.

The economist also asserted that communicating with Biden’s team will be easier than with Trump’s. Although, he added that the Chinese government should still prepare themselves for a 2024 Trump comeback. He said, “It is very likely [that Trump will run again], he is still very healthy.”

China must drop its illusion that Biden’s administration would improve its relations with the United States

Another Chinese government advisor said that China must drop its illusion that Biden’s administration would improve its relations with the United States. He added that Beijing should prepare themselves for the tough outlook that Washington may present them.

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Zheng Yongnian also said that the Chinese government should make use of every opportunity to reform their relationship with the USA. “The good old days are over… the cold war hawks in the US have been in a highly mobilized state for several years, and they will not disappear overnight,” said Zheng. Zheng is the Dean of the Advanced Institute of Global and Contemporary Shina Studies. He made his statement in an interview at the Understanding China Conference held in Guangzhou recently.

President-elect Biden has vowed that if he is elected, he would bring China “to play by the international rules”. These rules are regarding trade, treatment of foreign companies, and China’s actions in the South China Sea.

During the Presidential Debate, Biden asserted on the Chinese problem. He said, “We need to be having the rest of our friends with us saying to China: these are the rules. You play by them or you’re going to pay the price for not playing by them, economically.”

Source: The Economic Times

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Arindom
Arindom
A 90's kid with a huge love for films, pop culture and everything related to them. I am also a cliché engineer turned writer and a filmmaking aspirant. I love writing and reading stories, watching and discovering films from all around the world. Basically, always in the search for stories.

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