Amid rising fears of a new trade war between the U.S. and China, China’s state media have praised several American companies for their strong partnerships with Chinese counterparts. This development comes as tensions reminiscent of Donald Trump’s return to presidency resurface.
What Happened: China’s state-owned Global Times has commended companies such as Apple Inc. AAPL, Tesla Inc. TSLA, Starbucks Corp. SBUX, and HP Inc. HPQ for their collaborative efforts with Chinese partners, according to a Reuters report on Thursday. The publication urged U.S. politicians to consider the willingness of American businesses to engage in economic cooperation by formulating appropriate policies.
In addition, the China Daily highlighted Morgan Stanley for obtaining regulatory approval to expand its operations in China, underscoring the interest of foreign financial firms in the Chinese market. This praise coincides with Trump’s announcement of a 10% tariff on Chinese goods, aimed at addressing the opioid crisis in the U.S.
See Also: Trump Names China Hawk Jamieson Greer As Pick For Trade Representative
During Trump’s first term, Chinese media coverage was closely monitored by corporate executives for indications of U.S. firms’ standing. Despite threats of an “Unreliable Entity List,” China has not fully implemented it, focusing instead on companies involved in arms sales to Taiwan.
Why It Matters: The recent commendation of U.S. firms by Chinese state media comes in the context of ongoing diplomatic efforts to prevent a trade war. On Nov. 13, China’s Ministry of Commerce expressed a desire for “win-win cooperation” with the U.S., even as the Trump administration considered imposing tariffs as high as 60% on Chinese imports.
Recently, Tim Cook, CEO of Apple, attended the China International Supply Chain Expo on Nov. 26. Cook’s visit, along with other American business leaders, underscores the significance of the Chinese market for U.S. companies amid potential trade tensions.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
