In a meeting with Chinese Vice Premier Liu He, on the sidelines of a forum DavosMinister vowed US treasury Janet Yellenmake efforts to settle differences with Chinaand prevent competition from turning into anything close to conflict, but it is only a few hours until the two sides exchange sharp accusations, at a meeting of the World Trade Organization, to make America By continuing its course in besieging China technologically, by concluding an agreement with Holland Japan’s goal is to prevent Beijing’s access to some important equipment chip industry.
Dialogue on the impact of the siege
Currently, US Secretary of State Anthony Blinken is preparing to visit China after a few days, in order to continue talks and strengthen relations between the two countries, which raised questions among observers about the usefulness of these dialogues, whose effects expire after a few hours, at a time when it became clear that the Sino-American understanding It is almost impossible, especially since Washington wants to negotiate with China over the impact of the technological blockade it imposes on it, which Beijing is not satisfied with.
The numbers belie the heated rhetoric
Although the aforementioned events may lead to believe that the economic relations between America and China are not in the best conditions, the figures show that the two rivals are closely interdependent in economic terms, as the heated rhetoric between the two countries did not affect their trade relations, as the data of the General Administration of Customs in China showed that the volume of Trade exchange between Beijing and Washington reached about $766 billion in 2022, which is a record level.
In detail, Chinese exports to America rose by 1.2 percent in 2022 to $582 billion, while US imports to China decreased by 1.1 percent to $178 billion.
Localization of industry in America
Dr. Pierre El-Khoury, an economist interested in Asian affairs, said in an interview "For the Sky News Arabia economy website"All that the United States is doing has one goal, which is to slow down the path of Chinese technological progress, to gain more time in implementing the plan to resettle its industries and raise the cost of Chinese technological production, indicating that America is doing this by repeatedly deviating from the rules of free competition and free access to markets. which she always called for.
slow the Chinese advance
Al-Khoury asserts that slowing the path of Chinese progress gives the United States an opportunity to create a balance with it, describing it as an unsustainable act fraught with geo-economic risks, as what is happening now is pushing China towards achieving technological independence, by clinging to developing its own chips less than 15 nanometers thick, at the same time. In which it spends about $150 billion to develop research and industry in the semi-transportation sector.
According to El-Khoury, the project "siege chips" Which Japan and the Netherlands joined, may rebound on the economies of the West, as the semiconductor market is suffering from a supply chain crisis due to sanctions and stagnation in demand, and this is what puts spending on research and development at stake, stressing that China cannot be stifled, but the rate of acceleration can be delayed. innovation growth.
Al-Khoury believes that nothing is impossible in a world full of contradictions and intersections. The Chinese and American sides, despite what we are seeing now, may reach a historic settlement on a group of issues, but he considered that this requires pressure from major industries, whose profits are threatened in light of this irrational struggle. .
Fearing a backlash
For his part, Ali Hammoudi, CEO and Chief Investment Officer of ATA Global Horizons, told MEE "Sky News Arabia economy"The common interest between the two countries, which appears clearly through the volume of trade exchange that was recorded in 2022, will ensure that relations do not worsen, as China is now very important to global supply chains, and the United States and the whole world have no choice but to continue dialogue and deal with China, for fear of Harming or provoking private economic interests "backlash" from her side.
Organizing the dispute through dialogue
Hammoudi believes that the dialogue between China and America may aim to regulate the differences, as there are no alternatives to the world for China until now, pointing out that the transfer of supply chains from China to other regions is very costly and requires many years, and therefore many countries prefer not to indulge. In conflict with China, which has the tools and means to reward those who continue to engage and work with it.
Join the Netherlands and Japan.
According to Hammoudi, the purpose of everything America is doing is very clear, which is to obstruct China’s pursuit of catching up with it in important industries in the future, but without cutting the cord of communication with it, which is evident through the continuation of the dialogue on the impact of punitive measures, pointing out that joining Holland Japan’s restrictions against China will not prevent Beijing from building its own versions of the machines that make semiconductors, even if it takes more time.
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Although the two sides tried to contain the situation through the positive statements that were made public, following the summit meeting that was held American president joe biden and his Chinese counterpart, Xi Jinping, on the sidelines of a summit G20 In mid-November 2022 on the Indonesian island of Bali, the truce could only hold for a few days, with America’s return to a policy of punishing and besieging Chinese companies, a scenario that was also repeated at the beginning of 2023.
In a meeting with Chinese Vice Premier Liu He, on the sidelines of a forum DavosMinister vowed US treasury Janet Yellenmake efforts to settle differences with Chinaand prevent competition from turning into anything close to conflict, but it is only a few hours until the two sides exchange sharp accusations, at a meeting of the World Trade Organization, to make America By continuing its course in besieging China technologically, by concluding an agreement with Holland Japan’s goal is to prevent Beijing’s access to some important equipment chip industry.
Dialogue on the impact of the siege
Currently, US Secretary of State Anthony Blinken is preparing to visit China after a few days, in order to continue talks and strengthen relations between the two countries, which raised questions among observers about the usefulness of these dialogues, whose effects expire after a few hours, at a time when it became clear that the Sino-American understanding It is almost impossible, especially since Washington wants to negotiate with China over the impact of the technological blockade it imposes on it, which Beijing is not satisfied with.
The numbers belie the heated rhetoric
Although the aforementioned events may lead to believe that the economic relations between America and China are not in the best conditions, the figures show that the two rivals are closely interdependent in economic terms, as the heated rhetoric between the two countries did not affect their trade relations, as the data of the General Administration of Customs in China showed that the volume of Trade exchange between Beijing and Washington reached about $766 billion in 2022, which is a record level.
In detail, Chinese exports to America rose by 1.2 percent in 2022 to $582 billion, while US imports to China decreased by 1.1 percent to $178 billion.
Localization of industry in America
Dr. Pierre El-Khoury, an economist interested in Asian affairs, said in an interview with “Sky News Arabia” that everything the United States does has one goal, which is to slow down the path of Chinese technological progress, to gain more time in implementing the plan to resettle its industries and raise the cost of production. Chinese technology, pointing out that America is doing this by repeatedly deviating from the rules of free competition and free access to markets that it has always called for.
slow the Chinese advance
Al-Khoury asserts that slowing the path of Chinese progress gives the United States an opportunity to create a balance with it, describing it as an unsustainable act fraught with geo-economic risks, as what is happening now is pushing China towards achieving technological independence, by clinging to developing its own chips less than 15 nanometers thick, at the same time. In which it spends about $150 billion to develop research and industry in the semi-transportation sector.
According to El-Khoury, the project “Siege chipsWhich Japan and the Netherlands joined, may rebound on the economies of the West, as the semiconductor market is suffering from a supply chain crisis due to sanctions and stagnation in demand, and this is what puts spending on research and development at stake, stressing that China cannot be stifled, but the proportion of Its innovation growth is accelerating.
Al-Khoury believes that nothing is impossible in a world full of contradictions and intersections. The Chinese and American sides, despite what we are seeing now, may reach a historic settlement on a group of issues, but he considered that this requires pressure from major industries, whose profits are threatened in light of this irrational struggle. .
Fearing a backlash
For his part, Ali Hamoudi, CEO and Chief Investment Officer at ATA Global Horizons, said in an interview with “Economy Sky News Arabia” that the common interest between the two countries, which is clearly shown through the volume of trade exchange that was recorded in 2022, will ensure that relations do not worsen, as China is important. Now very severe for global supply chains, the United States and the world at large have no choice but to continue dialogue and engagement with China, for fear of harming private economic interests or provoking a “violent reaction” on its part.
Organizing the dispute through dialogue
Hammoudi believes that the dialogue between China and America may aim to regulate the differences, as there are no alternatives to the world for China until now, pointing out that the transfer of supply chains from China to other regions is very costly and requires many years, and therefore many countries prefer not to indulge. In conflict with China, which has the tools and means to reward those who continue to engage and work with it.
Join the Netherlands and Japan.
According to Hammoudi, the purpose of everything America is doing is very clear, which is to obstruct China’s pursuit of catching up with it in important industries in the future, but without cutting the cord of communication with it, which is evident through the continuation of the dialogue on the impact of punitive measures, pointing out that joining Holland Japan’s restrictions against China will not prevent Beijing from building its own versions of the machines that make semiconductors, even if it takes more time.
