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Xi Jinping’s man on US trade focuses on self-sufficient economy
The Chinese government has made progress in containing the coronavirus, which has infected tens of thousands of people and killed more than 4,000 people in the country while spreading around the world. At the same time, Beijing is locked in an increasingly heated diplomatic confrontation with Washington. Nikkei’s China bureau chief Tetsushi Takahashi files dispatches about what he sees.
Monday August 1st
A statement released at a Politburo meeting of 25 members of the Communist Party of China on July 30 highlights an unknown term: “great domestic cycle.” The document says China will seek to establish a new development model, guided by this round.
It sparked a torrent of speculation as to what exactly that means.
The “domestic cycle” has appeared before, however. Vice Premier Liu Il pointed this out at an economic forum in mid-June. “The national cycle should be the main body, and the international and national dual cycles would be mutually promoted to form a new development framework,” he said.
Then, like today, it was difficult to know what to do with this statement. But as US President Donald Trump takes an increasingly confrontational approach to Beijing and an economic ‘decoupling’ between the US and China becomes more likely, many have taken it as a call. to promote an economy which can continue to harness the power of the internal market on its own – even if it is cut off from the world.
Liu’s remarks are particularly noteworthy due to his close relationship with President Xi Jinping. They say they got to know each other when they were still teenagers.
Liu attended Beijing 101 Middle School, not far from Beijing Bayi School where Xi studied. Both are prestigious schools, to which many military officials and party cadres send their children.
Exchanges between schools are common – this is how Xi seems to have befriended Liu, who is a year older.
Liu was a famous brilliant student. After entering Renmin University in 1979, he quickly became determined to study in the United States. When a friend asked him why, he reportedly replied, “I have already read all the books in the library at this university. I have nothing more to learn here. “
Liu’s dream finally came true in the early 1990s. He went to the United States for a stint as a researcher at Harvard Kennedy School and elsewhere. At the time, he couldn’t have known he would find himself at the forefront of China’s trade negotiations with the United States as Deputy Prime Minister almost 30 years later.
Behind the scenes, some critics said Liu had an academic mindset and would find it difficult to deal with difficult trade talks with the United States. When the two sides reached a “phase one” trade deal in January, he may have shared his joy with Xi.
But the coronavirus pandemic has changed everything. The confrontation between the United States and China is not limited to trade. The two countries are heading towards a “new cold war” which pits democracy against the one-party regime.
Xi, who also serves as general secretary of the Communist Party of China, has also started talking about the “great domestic cycle,” perhaps because he is preparing for further escalation with Trump’s statement last Friday that he has The intention to ban TikTok, the popular video-sharing app operated by Chinese company ByteDance, only pushes countries to the brink of decoupling.
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