China mulls US manufacturing fund ahead of Xi-Trump summit, business leader says
China and the US are likely to secure several “very positive” outcomes but not a “grand bargain” at their presidential summit in April, according to the board chief of a major American business lobby.
James Zimmerman, chairman of the American Chamber of Commerce in China, said on Friday that “the optics [of] announcing deals” such as aircraft and soybean sales might be US President Donald Trump’s main objective for his meeting with Chinese counterpart Xi Jinping in Beijing this spring.
Speaking at an event at the Lowy Institute think tank in Sydney, the Beijing-based lawyer said another issue “still out there” was for China to invest in manufacturing in the United States. He added that China had shown receptiveness to such proposals but would require “protection” in return.
“Apparently there is a discussion about the possibility of Beijing setting up a fund to encourage Chinese investors to make manufacturing investment in the US, and similar to that encouraged of Japan, Taiwan and South Korea,” Zimmerman said.
“You won’t see a grand bargain worked out at the April meeting, but you may see certain deliverables that are very positive,” he said during the talk, adding that the pressure of the US midterm elections in November could contribute to Trump’s eagerness for those outcomes.
His comments came a day after China confirmed that discussions were under way about Trump’s visit.
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