The US-China trade war, which began in 2018, has significantly impacted global economic dynamics, leading to substantial shifts in trade policies and economic relations between the two superpowers. Amidst this contentious backdrop, China has been strategically working to expand its influence and foster positive relations with American businesses and policymakers. how China is making a “circle of friends” in Washington, investing heavily in lobbying efforts, and potentially changing American perceptions, while also examining whether the two nations are moving from conflict toward a more peaceful engagement.
China’s Expanding “Circle of Friends” in Washington
On a recent Tuesday, the China Council for the Promotion of International Trade (CCPIT) took a significant step by moving its office to a new location in Washington, D.C., sharing a building with the US Chamber of Commerce. This move, attended by around 130 business representatives from both the US and China, symbolizes China’s strategic efforts to strengthen bilateral economic and trade relations .
Founded in 1952, CCPIT aims to enhance international trade and investment between China and foreign businesses. The relocation of its office to the US capital is a calculated effort to bolster its influence and create a more robust network of American allies. Chinese Ambassador to the US, Xie Feng, emphasized the importance of CCPIT as a bridge between Chinese and American business activities, highlighting its role in fostering mutual economic growth .
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Is China Investing Heavily in Lobbying in America?
China’s efforts to build a “circle of friends” in Washington are underpinned by substantial investments in lobbying. By opening offices in strategic locations and engaging with influential American business groups, China is positioning itself to effectively advocate for its interests. The CCPIT’s new office in Washington is a tangible manifestation of this strategy .
In recent years, China has ramped up its lobbying efforts in the US, seeking to influence policymakers and shape public opinion. This includes hosting delegations from major American business organizations such as the US Chamber of Commerce and the US-China Business Council. These interactions are designed to foster a positive dialogue and mitigate the adversarial rhetoric that has characterized the trade war .
Will Chinese Lobbying Change the Mindset of Americans?
The effectiveness of Chinese lobbying in changing American perceptions is a critical question. While significant investments in lobbying can foster positive relationships and facilitate dialogue, the deep-seated mistrust and geopolitical competition between the two nations present considerable challenges.
However, there are signs that Chinese lobbying efforts are bearing fruit. The increased presence of US companies at Chinese trade expos and the growing investment by American businesses in China suggest a willingness to engage despite ongoing tensions. For instance, bilateral trade between China and the US grew by 2.9% year-on-year in the first half of 2024, with the number of US companies investing in China increasing by more than 20% during the same period .
Additionally, influential figures such as Craig Allen, president of the US-China Business Council, have voiced optimism about the potential for increased trade and investment benefiting both countries. The presence of American business leaders at CCPIT events underscores the importance of economic ties and the potential for lobbying efforts to bridge the gap between the two nations .
Are China and the US Really Moving from a Trade War to Peace?
While the trade war has significantly strained US-China relations, recent developments suggest a cautious shift towards more constructive engagement. The CCPIT’s move to Washington, the mutual visits by business delegations, and the positive remarks from American business leaders indicate a willingness to explore avenues for cooperation .
The third plenary session of the 20th Central Committee of the Communist Party of China, held in July, highlighted China’s commitment to expanding market access and promoting an open economic system. These initiatives signal China’s readiness to engage in global cooperation and create a favorable environment for foreign investments .
However, significant hurdles remain. The underlying geopolitical competition, technological rivalry, and issues related to human rights and security continue to pose challenges to a complete resolution of the trade war. While economic pragmatism might drive efforts towards peace, the strategic distrust between the two nations will require sustained diplomatic efforts to overcome .
China’s Open Operations in the Middle East: On Whose Behalf?
China’s diplomatic and economic maneuvers extend beyond the US-China trade war, as seen in its increasing involvement in the Middle East. These actions are primarily driven by China’s national interests, particularly its need to secure energy resources and expand its Belt and Road Initiative (BRI) .
By forging alliances with Middle Eastern countries, China aims to secure stable energy supplies and create new markets for its goods and services. This strategy also helps counterbalance US influence in the region. China’s approach is characterized by economic investment rather than military intervention, which has generally been well-received by Middle Eastern nations seeking development partnerships .
Does China Have the Support of the United States and Its Allies?
China’s efforts to expand its influence in the US and the Middle East are met with mixed reactions. While there is significant business engagement and some positive reception from American businesses, the US government and its allies remain wary of China’s strategic intentions .
The US has consistently highlighted concerns over China’s human rights record, military ambitions, and technological competition. These concerns are shared by key allies such as the European Union, Japan, and Australia, who have also experienced tensions in their relations with China .
However, the pragmatic interests of businesses often lead to a more nuanced stance. Many American companies recognize the importance of the Chinese market and seek to maintain and expand their operations there despite geopolitical tensions. This duality underscores the complexity of US-China relations, where economic cooperation and strategic competition coexist .
How Can the Gulf Countries React to This Intervention, and What Can Turkey Do?
The Gulf countries and Turkey have their own strategic considerations in response to China’s expanding influence.
Gulf Countries
- Economic Cooperation: Gulf countries, particularly those rich in energy resources, are likely to welcome Chinese investments and trade partnerships. China’s demand for energy aligns with the economic interests of these nations, making cooperation mutually beneficial .
- Strategic Balancing: While engaging with China, Gulf countries will also aim to maintain strong relations with the US, balancing their partnerships to maximize benefits. This balancing act is crucial given the US’s strategic presence in the region .
Turkey
- Economic Opportunities: Turkey views China’s investments as opportunities to bolster its own economy. The BRI presents significant infrastructure and trade opportunities that align with Turkey’s aspirations to become a regional hub .
- Geopolitical Maneuvering: Turkey’s response to China’s influence will also be shaped by its complex relations with both the US and Russia. Ankara will seek to navigate these dynamics carefully to enhance its own strategic position .
China’s strategic efforts
China’s strategic efforts to expand its “circle of friends” in Washington during the era of the US-China trade war reflect a nuanced approach to international relations. By investing heavily in lobbying and fostering economic ties, China aims to influence American perceptions and mitigate the adversarial dynamics of the trade war. While challenges remain, the potential for increased economic cooperation offers a pathway towards more constructive engagement between the two superpowers.
Credits: Mr. Waseem Shahzad Qadri also contribute this article
