Looking ahead to the Biden-Xi meeting in San Francisco after strained relations and trade disputes. Focus on semiconductor industry rivalry and the challenges for China. Highlighting China's trade restrictions on graphite and the importance of high-level communication between US and China.
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Quick takeaways
The meeting between Biden and Xi highlights the escalating tensions and zero-sum competition between the US and China in becoming the world's technology leader.
The trade dispute between China and the US over semiconductors and raw materials, such as graphite, raises concerns for the electric vehicle sector and highlights the potential for a domestic supply chain in the US.
Deep dives
China-US Relations and the Technology Competition
The podcast episode discusses the face-to-face meeting between US President Joe Biden and China's leader, Xi Jinping, in San Francisco. It highlights the escalating tensions between the two countries and the zero-sum competition to become the world's technology leader. The episode explores the strained relationship, trade barriers, and the trade war initiated by former US President Donald Trump. It also delves into the conflict surrounding the semiconductor industry and the challenges China faces in catching up to the US and Taiwan in advanced chip technology.
APEC Summit and the Importance of San Francisco
San Francisco is the host city for the APEC summit due to its cultural significance, particularly in relation to China and its vibrant Chinatown. The episode highlights the economic growth of California, which would rank as the fifth largest economy if it were a country, largely due to the booming technology sector in Silicon Valley. The discussion focuses on the liberalization of trade, the impact of trade barriers, and the potential benefits of inviting Chinese delegations to experience Chinatown and Chinese American culture.
Graphite Restrictions and the Shift in the EV Supply Chain
The podcast touches on the trade dispute between China and the US concerning semiconductors and the raw materials for electric vehicle (EV) batteries. It discusses China's monopoly in the global graphite market and its recent export controls on graphite, which impact the EV sector. The episode features an interview with a representative from an Alabama-based graphite processing plant, highlighting the implications of China's restrictions and the potential for a domestic supply chain to develop in the US.
We’re looking ahead to the meeting between Presidents Joe Biden and Xi Jinping in San Francisco – the first time the two leaders will have met in 12 months.
Diplomatic ties between Washington and Beijing have deteriorated this year, with tensions rising over Taiwan and the South China Sea.
Meanwhile, there’s been a tit-for-tat trade spat over semiconductors and raw materials. As the presidents meet on the side lines of the APEC summit, Vivienne Nunis takes stock of the relationship between the world’s two largest economies.
Produced and presented by Vivienne Nunis.
(Image: US President Joe Biden and China's President Xi Jinping meet at the G20 Summit in Bali on November 14, 2022. Credit: Getty Images)
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