The Aspen Institute is a global nonprofit organization whose purpose is to ignite human potential to build understanding and create new possibilities for a better world. Founded in 1949, the Institute drives change through dialogue, leadership, and action to help solve society’s greatest challenges. It is headquartered in Washington, DC and has a campus in Aspen, Colorado, as well as an international network of partners.
The speakers are:
- Stephen Biegun, Senior Vice President, The Boeing Company; Former U.S. Deputy Secretary of State
- Alan F. Estevez, Under Secretary of Industry and Security, U.S. Department of Commerce
- Anja Manuel, Executive Director, Aspen Strategy Group and Aspen Security Forum
- Eric Schmidt, Chair, Special Competitive Studies Project; Former CEO of Google
- Moderator: Demetri Sevastopulo, U.S.-China Correspondent, Financial Times
The discussion revolves around the current state of U.S.-China business relations and the concept of “de-risking” versus “decoupling.” Here are the key points:
- Robust Commercial Relationship: Despite challenges, the U.S.-China commercial relationship remains strong, particularly in agriculture and consumer products. For example, China imports significant amounts of agricultural products from the U.S.
- Sector-Specific Dynamics:
- Agriculture: China imports a lot of food from the U.S. due to its own production limitations.
- Consumer Products: No major security concerns; brands like Starbucks and McDonald’s are thriving.
- Entertainment: Facing challenges due to censorship, but cultural connections are important.
- Financial Services: Initially welcomed, but now facing reduced exposure and challenges.
- Technology: The most affected by de-risking and decoupling efforts.
- De-risking vs. Decoupling: Companies struggle with de-risking due to the unpredictable nature of risks, often leading to a complete decoupling. Clear rules and certainty are crucial for businesses to manage risks effectively.
- Strategic vs. Non-Strategic Industries: There is a push to clearly define what constitutes strategic industries (e.g., high-end tech) versus non-strategic ones to maintain necessary trade and exchanges while protecting national security.
- U.S.-China Relationship: Currently, the relationship is cautious, with China observing U.S. political dynamics. The U.S. policy should balance deterrence, competition, and engagement to manage risks and maintain interdependence.