New US-China economic exchanges show how status quo trumps substantive changes in ties, analysts say
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Analysts point to a just-concluded meeting of the US-China Economic Working Group as evidence that Washington and Beijing are keen on maintaining the status quo in their interactions. The meeting took place in China and discussed bilateral economic concerns, including tariffs, sanctions, investment restrictions, and cooperation within the Group of 20. However, analysts do not expect any remarkable results from these meetings, given past experiences. The US has been criticizing China's model of industrial policy for over a decade, which China perceives as justification for isolating China. The two countries remain embroiled in economic concerns, including investment restrictions, de-risking, reshoring, and protectionist tariffs. The Biden administration is cautious about making concessions that could be seen as weak on China during an election year. Chinese investors are concerned about the possibility of the US increasing trade barriers targeting Chinese exports, especially if Donald Trump were to be re-elected. High import tariffs on Chinese goods have been a key source of inflation, with retailers passing on additional costs to American consumers. Prolonged inflation in the US has led many Americans to be disappointed with the Biden administration. It may be difficult for the US to decouple from the Chinese market and its supply capacity.
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