What Xi Said is a weekly rundown of the top ten emerging issues from the past seven days shaping US-China commercial relations.
What Xi Said is for global communication strategists and C-Suite executives.
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Memo: What Xi Said | Edition 7 | February 22, 2021
1. Biden builds out China team with staff who reflect more uncompromising tone: The new Team Biden is comprised of staff whose past writing and speeches align with the stern tone toward Beijing that emerged under the Trump administration, adding to evidence that the Biden administration won't revert to an earlier era of conciliation.
2. Biden renews 'Quad' with allies despite Beijing pressure: The United States announced talks with Australia, India, and Japan, with Biden renewing the alliance of the so-called "Quad" in defiance of warnings from China. The US is all about the Indo-Pacific as a region and a mindset.
3. White House shifts from tech 'decoupling' to 'small yard, high fence' approach: Caixin reports, the Biden administration's recent decisions to review the policies of Trump toward individual Chinese companies have laid the groundwork for a step-change in how Washington deals with the perceived threats posed by the Asian nation's tech firms.
4. China decoupling would cost US billions, US Chamber says: Bloomberg reports, American companies would lose hundreds of billions of dollars if they slashed investment in China or the nations increased tariffs, the US Chamber of Commerce said in a report highlighting the cost of a full decoupling of the world's largest economies.
5. Bitcoin mining is big in China. Why investors should worry. Isaac Stone Fish writes, roughly 20% of new Bitcoin is mined in Xinjiang, the site of some of the world's most egregious human rights abuses. Today, Bitcoin's association with Xinjiang is barely discussed. But that may change. For public-facing funds considering investing in the notoriously volatile asset, there are new risks to consider.
6. Will there be a 2022 Beijing Olympic boycott? "We can pretend that the Olympics are not political. It's a big political undertaking on the part of China. ... If we go to the Games, I think history will judge us very severely." -- Guy Saint-Jacques, Canada's ambassador to China between 2012 and 2016
7. China is exploring limiting rare earth export curbs to hobble US defense industry: China's Ministry of Industry and Information Technology last month proposed draft controls on the production and export of 17 rare earth minerals in China, which controls about 80 percent of global supply. Rare earths are dispersed globally, but the highly toxic and expensive mining process is presently concentrated in China.
8. China blocked Jack Ma's Ant IPO after investigation revealed likely beneficiaries: WSJ reports, well-connected Chinese power players, including some with links to political families representing a potential challenge to Xi, were behind layers of opaque investment vehicles. The information added to concerns about financial risk and anger at Ma's outspoken criticism.
9. Chinese stay home for the Lunar New Year holiday: Railway passenger traffic dropped nearly 70 percent in the first 15 days of the travel rush when hundreds of millions usually visit their families.
10. China box office record: China made history with the Chinese New Year holiday weekend with record sales of nearly $775 million, led by an incredible $424 million debut from Detective Chinatown 3. This marked the first time the country's national box office has ever broken RMB1 billion ($155 million) a day for three consecutive days.
