JPMorgan CEO Jamie Dimon sees full US engagement as the right approach to China, but says obstacles will make the path difficult to follow, he told Sky News.
The main issue is strengthening relations between Beijing and Moscow, Dimon told the outlet on Wednesday: “As long as China is sort of on Russia’s side, we’re going to have a hard time.”
In many ways, the two countries have aligned themselves as a promising alternative to the Western order, and China has become a major counterpoint to the numerous sanctions weighing on the Russian economy since its invasion of Ukraine.
Geopolitically, the two countries also pursue a “no-holds-barred” partnership and recently engaged in a joint military exercise near Taiwan. The straight line – a point of contention between the United States and China – will also remain an obstacle to productive negotiations, Dimon cited.
But beyond these headwinds, Dimon said the United States and its allies are in a good position to confront Beijing and should approach it as a serious competitor, but not necessarily as an enemy.
“We’re in competition with China. I think the U.S. government is doing the right thing by being fully engaged. That doesn’t mean China is going to like everything we do, just like we don’t like everything that it does, but that’s not the case. It’s not necessarily war,” he said. “The competition can be tough, and we have to prepare for it.”
With this mindset, Dimon said the United States should not shy away from trade, despite some over-emphasised downsides, he said.
“There are some downsides to trade. We focus too much on that,” he said. “We need to count our blessings, be strategic, very thoughtful and fully engage with China. They are not an enemy, but they are in competition.”
His comments follow President Biden’s adoption of a series of tariffs on Chinese imports, including quadrupling the tax rate on products for electric vehicles.
businessinsider
