Navigating the Mirage: Analyzing the Challenges of US-China De-risking Amidst Lingering Tensions

• Biden administration initiates talks with China, signaling a shift away from confrontational approaches.
• Discussions aim to de-risk US-China relations, emphasizing economic interdependence and collective action on global challenges.
• Challenges include trust deficits and strategic competition, with both sides recognizing the importance of maintaining dialogue for stability.

In response to calls from experts, policymakers, and think tanks, the Biden administration appears to have acknowledged the adverse consequences of escalating tensions with China on the US economy. Recognizing this reality, the Biden administration initiated discussions with Beijing last month, a move warmly received by the Xi Jinping-led administration.

According to reliable sources within The Islamabad Telegraph’s Foreign Affairs section, both the United States and China are actively pursuing efforts to reduce the risks in their relationship, steering away from the tensions and conflicts that have characterized their recent interactions. This shift is motivated by the acknowledgment of their economic interdependence, the necessity for geopolitical stability, and the recognition that addressing common challenges requires collective action.

Potential areas of collaboration between the two nations include climate change, public health, and trade and investment. However, overcoming challenges such as trust deficits and strategic competition is imperative for successful risk reduction. Engaging with multilateral institutions will also be vital. These risk reduction efforts hold promise for stability, cooperation, and mutual benefits for both countries and the global community.

Last month, US National Security Adviser Jake Sullivan and China’s top diplomat Wang Yi met in Vienna for talks aimed at stabilizing bilateral relations, which have sunk to their lowest point since diplomatic ties were established in 1979. Described as “candid, substantive, and constructive” by the White House, the discussions covered a range of crucial issues, including the US-China relationship, global security concerns, the ongoing Russia-Ukraine conflict, and the sensitive matter of Taiwan.

Sources from both Washington and Beijing disclosed that both parties recognized the importance of maintaining this critical strategic channel of communication, building on previous engagements between President Joe Biden and President Xi Jinping in Bali, Indonesia, in November 2022. The objective was to address obstacles hindering the progress of China-US relations and prevent further deterioration in the overall relationship.

During the two-day talks, lasting over eight hours, Sullivan raised US concerns regarding potential Chinese assistance to Russia and the necessity to manage tensions related to Taiwan, an area over which China asserts territorial claims and has expressed readiness to use force if required.

Recent developments indicate that amidst escalating diplomatic tensions, China has rejected a US proposal for a meeting between defense chiefs. This comes in the wake of a spy balloon incident that led to the cancellation of Secretary of State Antony Blinken’s planned visit to Beijing in February. Nonetheless, Washington anticipates further engagements with Chinese officials in the coming months as efforts to restore high-level dialogue persist.

While the Chinese interpretation of the talks stressed the importance of removing obstacles in the China-US relationship and stabilizing it, it also reiterated China’s stance on Taiwan and mentioned the ongoing conflict in Ukraine. However, disagreements persist, notably with China insisting on the lifting of sanctions imposed on its defense minister, Li Shangfu, as a precondition for a meeting with his US counterpart. The United States, however, maintains that these sanctions do not preclude a meeting in a third country. Nevertheless, China views it as inappropriate to engage in talks while its defense minister remains under sanctions.

Insiders familiar with discussions within the Biden administration have disclosed that there are no intentions to lift the sanctions imposed on Li Shangfu during the Trump era