Page 164 - 2021 White Paper
P. 164
1 White Paper on the Business Environment in China

George Floyd’s killing by contending that China powerhouse’s desire for increased regional and
should be held accountable for the pandemic global influence in check (Mcdonald).
and accusing the World Health Organization
( WHO) of being Beijing’s puppet. The perception A Biden White House is likely to oversee a
of China as the culprit of the pandemic and steadier and more coherent China policy than
disruptions to global supply chains have led the Trump administration. A consistent approach
some US politicians to demand a decoupling will bring more stability to a delicate and difficult
from China. Conspiracy theories about the origins relationship. But a more stable approach does
of the outbreak, which were encouraged by not mean a soft one, since there is now a
disinformation and misinformation efforts from bipartisan recognition in the US that China is a
both sides, intensified uncertainty between the strategic competitor. Indeed, while Beijing may
two nations. At the same time, the pandemic has appreciate soon having a more predictable set
led to a significant increase in the proportion of interlocutors, it should not expect them to be
of American people with a negative view of more pliable. US foreign policy is the prerogative
China. An October 2020 Pew Research Center of the president and therefore less constrained
survey found that 73% of Americans view China than domestic policy by the legislative branch.
negatively, the highest level since 2005. In China, Biden’s 20-year road from wary optimism to
the government’s ability to rapidly contain the condemnation — while still straining for some
virus’s spread, in conjunction with the US-China cooperation — is emblematic of the arc of US-
diplomatic row, has solidified nationalism and China relations, which have deteriorated to an
anti-Americanism. Chinese state media outlets unstable, potentially explosive state. But as
have portrayed the US as a diminishing and former president Donald Trump denounces
hostile power. Washington’s perceived failure in what he describes as failures by the Washington
global health leadership and bullying of Beijing establishment on China, Biden, an avatar of
have convinced even liberal-minded elites in that establishment, is not recanting his past
China that the country should move to reduce the enthusiasm for engagement. Biden speaks these
risks associated with interdependence with the days not of transforming China but of restoring
US. The Chinese public’s views toward the US in the US, according to his policy statements
May 2020 were significantly more negative than and interviews with his aides. They say the US
they were a year earlier (Huang). must regain its role as a leader of liberal values
and economic innovation, and that will give
Chinese leaders hope Washington will tone Washington the standing to rally like-minded
down conflicts over trade, technology during nations to constrain China (Bear).
Biden presidency. But any shift is likely to be in
style, not substance, as frustration with Beijing Creating Allies
increases across the American political spectrum.
Both Republican and Democratic lawmakers and China has its work cut out for it. Like any
their constituents seem disinclined to adopt a rising state, China’s first challenge is to reshape
softer approach toward China. In an unequivocal its surroundings and secure deference to its
repudiation of the Trump administration’s “America interests. The way Beijing has pursued these
First” neo-isolationism, the incoming Biden has goals undermines important precepts of the
promised to “lead the world, not retreat from it”. established regional system. This behavior,
Boasting the world’s largest navy and second- combined with China’s preference for economic
largest economy, China represents the primary coercion, most recently directed against Australia,
challenge to Biden’s hopes to “reassert [America’s] means that many of the order ’s organizing
role in the world”. The success of his foreign policy principles are at risk. The second challenge is
will thus largely depend on how he handles the more surprising because it comes from the
China challenge. As president, Biden will not only original architect and longtime sponsor of the
be aiming to prevent the brewing “New Cold War” present system—the US. Despite determined
between the US and China from transforming into a efforts by the Trump administration’s Asia experts
catastrophic global conflict, but also keep the Asian

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