'China-US Trade To Thrive Despite Political Tensions'

An international relations expert said economic cooperation between the nation and the United States would continue to thrive, despite President Xi Jinping’s criticism of Washington on the political front.

During the recent "Two Sessions" in Beijing, President Xi accused the United States of leading the West to implement "all-round containment, encirclement and suppression of China".

Nanjing University international studies professor, Zhu Feng, said President Xi's comment reflects "deepened frustration and dissatisfaction".

One of the main reasons behind this frustration, Zhu said, is that the United States is limiting Beijing’s access to its high-tech products. US sanctions have taken aim at mainland purchases of advanced artificial intelligence computing chips, as well as equipment that chip factories could use to produce leading-edge computing chips.

Xi has said the nation needed to strengthen basic research in science and technology if it is to achieve self-reliance and become a global tech power, saying “we urgently need to strengthen basic research and solve key technology problems from the source".

While the scholar said President Xi's remarks serve as a "timely warning" for Washington, he stressed that Beijing is not looking to escalate the situation.

"The Chinese government still doesn't want to, let's say, seek a cold war, [it] doesn't want to have some sort of a showdown with its American counterpart."

Zhu said the two countries are still intricately connected in trade and investment.

"Economic and commercial relations between Washington and Beijing of course will have to fit into some sort of a new security-prioritised recalibration and rearrangement," he said. "[But] complete decoupling from China is hard to accomplish."

"Interdependence in today's world – particularly between the US and China – is hard to just break overnight."

He added while Washington is trying to reduce reliance on imports from Beijing, China continues to play a vital role in the world's supply chain.

Zhu said American businesses also remain confident that the mainland will be the most profitable market in the coming years.

Aside from the US, Beijing will continue to maintain pragmatic commercial connections with Canberra and London, although authorities feel contained by a new defence alliance between Australia, Britain and the United States.

The Foreign Ministry had said the three countries have disregarded the concerns of the international community and gone further down a dangerous road.