[Asia Economy Reporter Bu Aeri] At the US-China summit, President Joe Biden criticized the problems of China's state-led economic system and pressured for change, but Chinese President Xi Jinping opposed on the 16th, saying not to "politicize" economic and trade issues.
The White House stated in a press release, "President Biden made it clear that there is a need to protect American workers and industries from China's unfair trade and economic practices."
The US points out that China has not fully fulfilled its market opening commitments made when joining the World Trade Organization (WTO) and continues unfair practices such as subsidies to state-owned enterprises.
With the Phase One trade agreement, which temporarily eased the US-China trade war, set to expire at the end of this year, President Biden directly raising the issue of "China's unfair trade and economic practices" to President Xi is interpreted as a sign of intensifying pressure on China.
The US is also building alliances to pressure China. The US and the European Union (EU) launched the first Trade and Technology Council (TTC) in September, marking the start of formal cooperation. This organization is regarded as established to counter China.
President Xi responded to Biden's pressure by saying, "Let's work to make a big cake," emphasizing economic logic. He said, "The essence of China-US economic and trade relations lies in mutual prosperity," and urged, "Do not politicize China-US economic and trade issues, and let's make a 'big cake of cooperation' together."
Amid recent large-scale liquefied natural gas (LNG) import contracts by Chinese state-owned enterprises in the US, President Xi also stressed the importance of energy cooperation between the two countries.
Regarding the "unfair trade and economic practices" issue raised by President Biden, Xi defended by saying, "We will deepen the basic national policy of opening up to the outside world and provide larger markets to all countries, including the US."
President Xi also expressed dissatisfaction. On this day, he requested President Biden to cancel US sanctions against Chinese companies such as Huawei and SMIC, saying, "The US should not suppress Chinese companies under the pretext of national security."
He added, "We must respect each other and cooperate for mutual win-win," and "Maintaining a peaceful and stable international environment, effectively responding to climate change, and addressing global challenges such as COVID-19 all require healthy and stable China-US relations."
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