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China Warns US on ‘Strategic Miscalculation,’ Urges Cooperation

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During a National Day event in Washington, China’s Ambassador to the United States, Xie Feng, issued a warning to the US about potential “strategic missteps” in its China policy. He criticized the Biden administration’s “small yard, high fence” approach, which involves trade and technology restrictions, arguing that such measures could harm both nations.

Xie emphasized to the 400-strong audience that these policies could act as “double-edged swords,” negatively impacting both American and Chinese economic interests. The ambassador reaffirmed China’s dedication to economic reform and promised to create more opportunities for US investors.

Concerns Over the “Small Yard, High Fence” Strategy

Xie’s critique of the “small yard, high fence” policy addressed US efforts to restrict China’s access to crucial technologies, particularly in semiconductors and electric vehicles (EVs). He argued that such limitations would “constrain one’s own space and serve nobody’s interest,” suggesting both countries would suffer. Xie stressed that China has no intention of supplanting the US or disrupting the global order.

“Trade wars or tech wars are double-edged swords,” Xie cautioned. “Building small yard, high fence would only constrain one’s own space and serve nobody’s interest.”

Taiwan: The “Primary Red Line”

Xie reiterated that Taiwan remains the “first and foremost red line” for Beijing in US-China relations. He urged the US to avoid using Taiwan as a “China card” in upcoming elections, noting that both Republican candidate Donald Trump and Democratic candidate Kamala Harris have taken tough stances on China.

While assuring that China would not interfere in US elections, Xie warned that politicizing China-related issues could exacerbate tensions between the two powers.

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“We firmly oppose attempts to play the China card, play on China issues and exploit China-U.S. relations,” Xie stated.

Ongoing US-China Diplomatic Efforts

The ambassador’s remarks came amid heightened US-China tensions over technology, trade, and security issues. Recently, Chinese Foreign Minister Wang Yi met with US Secretary of State Antony Blinken at the UN General Assembly in New York. They discussed various contentious topics, including US concerns about China’s global assertiveness and its relationship with Russia.

Wang repeated China’s call for the US to stop “suppressing” Chinese technological development, particularly regarding semiconductor export bans and restrictions on investments in Chinese tech companies. The South China Sea and Taiwan were also key discussion points.

Blinken expressed concerns about China’s military activities in the South China Sea and its provision of dual-use goods to Russia.

Economic Cooperation: A Potential Bridge

Despite ongoing rivalries, Xie struck an optimistic tone when discussing economic ties. He cited US companies like Tesla and Starbucks as examples of mutually beneficial trade relationships.

“A new car is built at the Tesla Gigafactory Shanghai in less than one minute,” Xie noted. “Starbucks is opening a new store in China every nine hours,” he added, eliciting laughter from the audience.

Xie emphasized China’s commitment to further opening its economy and removing barriers to foreign investment, envisioning mutual benefits and rejecting zero-sum thinking.

The US Perspective

US Assistant Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink responded diplomatically to Xie’s speech. He congratulated China on its National Day and affirmed the US commitment to responsibly managing its relationship with China.

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“We must keep open the channels of communication,” Kritenbrink said. “We need to reduce the risk of miscalculation that could veer into unintended conflict.”

Looking Ahead: US Elections and Bilateral Relations

As the US presidential elections approach, US-China relations remain a critical issue. While the US public views China warily, Xie’s comments indicate China’s desire to avoid becoming a central campaign topic.

China continues to oppose US military support for Taiwan and perceives American actions in the Asia-Pacific as attempts to hinder its rise. The US, meanwhile, is increasingly worried about China’s growing influence in technology, trade, and military expansion.

Concluding Thoughts

While tensions persist, Xie’s speech suggests China’s willingness to maintain open communication and economic cooperation with the US. However, with the upcoming US election and ongoing geopolitical friction, the future remains uncertain.

Both nations appear committed to careful management of their relationship, even as broader challenges continue. The global community watches closely as these superpowers navigate their complex interactions on the world stage.

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