Biden scrambles to emergency-proof U.S.-China ties before Trump takes office

LIMA, Peru — President Joe Biden will have his last chance this weekend to emergency-proof the U.S.-China relationship before President-elect Donald Trump returns to office and embarks on what is expected to be a harsh reset on already frayed relations between the two nations.

Military-to-military Communications

As he meets with Chinese President Xi Jinping at the Asian Pacific Economic Cooperation Summit in Lima on Saturday, Biden is likely to seek to preserve recently restored military-to-military communications to prevent misunderstandings that could spark unintended conflict between two hostile powers.

A Challenge

It will be a challenge for Biden to push any message of continuity from the U.S., after Trump won a decisive victory with promises to impose punishing tariffs on China and said he would nominate Sen. Marco Rubio (R-Fla.), a fierce critic of Beijing, to be his secretary of State.

Still, China may be willing to take some steps to solidify small gains made with Biden over the past four years, as Xi faces economic challenges at home and looks to improve his country’s bargaining position with the new U.S. administration.

“I wouldn’t be shocked if the Chinese are trying to get agreement on the principles that have guided the relationship the last four years,” said Zack Cooper, a China expert who held senior roles in the Defense Department and the National Security Council during the Obama administration. “Maybe they want to be able to say going into the next administration that ‘over the last four years, we agreed on some principles, here’s what they are,’ and try to hold the next team to that.”

AI

That could mean reiterating the value of U.S.-China communication working groups for military, economic and financial information-sharing, which are at risk of cancellation under the incoming Trump administration. Or the two leaders could express support for a pact on how to develop and deploy artificial intelligence.

About E. J. McKay

E.J.McKay is a Shanghai-headquartered investment bank with a special focus on mergers & acquisitions. We are one of the most long standing independent investment banks in China, with core business of mergers & acquisitions and financing advisory.