Chinese President Xi Jinping is preparing a large delegation of Chinese business leaders for a visit to Washington on 24 September, two sources told Reuters. The agency has not confirmed the composition of the delegation. The trip is intended to signal Beijing’s willingness to maintain investment and commercial ties with the US, although Reuters’ sources expect the summit to yield mainly symbolic results.
Briefly about the main points
- Xi Jinping plans to take a large group of Chinese CEOs to Washington.
- Beijing is keen to demonstrate its support for investment and trade links with the US.
- The composition of the delegation has not yet been finalised.
- The parties disagree on which goods are to be classified as «non-sensitive».
- Ahead of the summit, US and Chinese officials will discuss possible agreements.
This business deal should serve as a warning to Washington
According to one of the sources, the involvement of company executives is intended to demonstrate China’s willingness to maintain business and investment ties with the United States. At the same time, this may give the White House an opportunity to highlight economic achievements in the run-up to the mid-term elections.
The White House stated that it was not «monitoring» the Chinese CEO delegation, without explaining exactly what this meant. The US Treasury Department declined to comment, whilst representatives from the Office of the US Trade Representative and the State Department did not respond to enquiries from Reuters. The Chinese Ministry of Commerce also did not provide an immediate comment.
An unusual format following pressure on the private sector
Xi Jinping He rarely takes corporate executives on overseas trips following Beijing’s regulatory crackdowns on the technology, education and property sectors, which began in 2020. The last time he brought a large business delegation to the US was in 2015 — notably the founders of Alibaba Jack Ma and Tencent Pony Ma, as well as representatives of banks and state-owned companies.
At that time, China signed a deal to purchase 300 Boeing aircraft worth $38 billion, and Xi met with the heads of US technology companies. The current initiative is taking place against the backdrop of stricter controls The US is keeping a close eye on Chinese investment and corporate activities. Among other measures, Washington has imposed a 100 per cent tariff on Chinese electric vehicles, banned the import of foreign drones, routers and robots, and demanded the divestment of TikTok’s US operations.
Disagreements regarding investments and «non-sensitive» goods
In May, the countries announced formal mechanisms for managing trade and investment relations. However, three sources familiar with the discussions believe that the Board of Investment is unlikely to yield significant results at the summit due to the challenging environment for Chinese investment in the US.
Beijing and Washington have also not agreed on which goods should be classified as «non-sensitive» within the Board of Trade. The parties are discussing around ten categories of goods, but one of the sources noted that the list may change as the meeting approaches.
Tariffs, rare-earth resources and preliminary negotiations
Among the US’s priorities are reaching an agreement on the Board of Trade and securing more licences for American companies to export rare-earth resources. The US administration is also putting pressure on Beijing to implement the agreement announced in Busan in October, which provided for an annual trade truce and the suspension of some export restrictions and tariffs.
China is seeking further tariff reductions. In July, the Chinese Ministry of Commerce reported that the parties were exploring mutual tariff reductions on goods with a total value of $30 billion. The US Trade Representative Jamison Greer stated that both countries would make certain announcements at the summit regarding agriculture and non-tariff barriers, without giving any details.
In early September, the US Secretary of the Treasury Scott Bessent, Greer and the Deputy Prime Minister of the People’s Republic of China He Lifeng are due to meet to discuss the possible outcomes of the summit.
