China Nixes Decoupling With U.S.

Newly-installed Premier Li Qiang says China does not want to decouple economically with the United States.

Photo Insert: “The Chinese and American economies have benefited from each other’s development,” said the newly-installed premier.

“The Chinese and American economies have benefited from each other’s development,” he said.

“China and the US can and should cooperate, and there is great potential for Sino-US cooperation,” CNN reported. “Opening up to the outside world is our basic national policy. No matter how the external situation changes, we will unswervingly move forward,” he added.

Worries have been growing about China’s future direction since October, when Xi stacked his top team with loyalists in a clean sweep not seen since the Mao era.

Over the weekend, the new cabinet lineup was confirmed by China’s parliament. As a group of Xi’s close associates stepped into office, some Western-educated, reform-minded officials departed – including former Premier Li Keqiang and former Vice Premier Liu He.

Analysts are worried that Xi’s preference for personal loyalty over technocratic competence signals a more ideology-driven policy direction that could further dent private sector growth and worsen Beijing’s ties with Washington.

A worsening economic outlook seems to have prompted top leaders to strike a more conciliatory tone toward private business, which contributes more than 60% to China’s GDP and over 80% of employment, despite being dwarfed by the state sector in size.

Last week, Xi called on private firms to play a role in boosting growth, jobs and tech innovation. “We always regard private enterprises and private entrepreneurs as people on our own side,” he said.

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