Between the tariffs and stop-and-go American equity markets, there isn’t much in the way of fraught geopoliticking between the world’s two largest economies.
The regional banker's attention span is sharply attuned to equity markets and tariffs—possibly even the goings-on in the UN and Ukraine. But the US and China? Not really—or at least not yet.
What we are seeing can’t really be called backdoor diplomacy as it is all taking place out in the open. Yes, there were new US tariffs as US President Donald Trump executive ratcheted his way back into the Oval Office, yet the Chinese response seemed muted, measured, and possibly even finely calibrated.
Trump 2.0 Laundry List
After that, the first meeting between the incoming US Secretary of the Treasury Scott Bessent, and China Vice Premier He Lifeng came and went with little in the way of surprise.
It was the usual laundry list out of the Trump 2.0 playbook expressing «serious concerns» about China’s counternarcotics efforts, economic imbalances, and unfair policies.
Continue Talking
He also stressed the new administration’s commitment to trade and economic policies that would protect the American economy, workers, and national security.
But importantly, both he and Lifeng agreed that they would remain in communication going forward.
Same Tone
The interesting thing about the message, and the meeting, is that it pretty much echoed every single last thing former Secretary of the Treasury Janet Yellen said in her last meeting with He, as finews.asia commented on in January.
At the time, she repeated several issues of concern related to China’s «non-market» policies and practices and the country’s industrial overcapacity, mentioning that it would continue to harm US workers and companies that «unless addressed, will continue to adversely affect the bilateral US-China economic relationship».
More Concerns
For its part, «Xinhua» indicated that Lifeng had expressed «serious concerns» about the US tariffs and «other restrictive measures» against the mainland.
Importantly, the «Global Times» put out an opinion piece by Denis Simon at the Washington-based Institute for China-America Studies at around the same time that said continued engagement between the world’s two largest superpowers was the only way forward. Implicitly, it probably echoes the view of many on the mainland and elsewhere.
Defining the 21st Century
«The China-US relationship will define the geopolitical landscape of the 21st century. A path of disengagement and hostility will only lead to economic instability, technological fragmentation, and a missed opportunity to address global challenges,» Simon wrote.
«A path of engagement, on the other hand, presents the possibility of a more stable and prosperous future for both nations and the world at large,» he added.
Quick Mood Change
But the larger truth is that the political world is sharply focused on twists and turns related to the Russia-Ukraine war right now, and all these expressions of concern by everyone don’t mean all that much.
This could all change in a Trump 2.0 minute, of course, but right now everyone seems intent on playing everyone, albeit not quite in the open, but not entirely out of the public eye either.
On the Sly
The 21st century could be one in which diplomacy using back channels is replaced by another term – a more public, and social media palatable, diplomacy-on-the-sly.
