The United States and China have begun discussions on resuming investment ahead of President Donald Trump's visit to China.
The South China Morning Post reported on the 3rd, citing multiple sources, that "working-level officials have resumed discussions on investment," adding that "the scale and structure of investments have not yet been finalized." President Trump is scheduled to visit China from the 31st through April 2nd.
According to sources, both countries showed interest in joint ventures and licensing agreements, including models with lower intellectual property burdens such as the deal between Ford and Chinese battery giant CATL. In 2023, Ford acquired a license for lithium iron phosphate battery technology from CATL and implemented it at its US plants.
China raised concerns about investment protection, citing reduced investment or withdrawal of some investments due to strengthened US screening of investments in China. According to China's Ministry of Commerce, US investment in China declined from $17 billion in 2016 to $6.6 billion in 2024. In October last year, a subsidiary of Chinese battery company Gotion withdrew plans to build a $2.4 billion plant in Michigan.
The two sides also discussed issues regarding Chinese companies' listings on US stock exchanges. Simultaneously, the US sought input on American companies' access to the Chinese market.
According to Chinese sources, "The Chinese side demanded investment protection measures including clarity on tariffs affecting supply chain components and inputs, while the US side emphasized managed trade and reciprocity." The source added, "Investment in China is possible in non-sensitive sectors, but a shift in position will be needed to ease the 'China threat' claims that the US has been making."
Meanwhile, SCMP suggested that the recent US attack on Iran could complicate US-China political relations ahead of President Trump's visit to China. However, the report predicted it would not affect the mainland Chinese or Hong Kong economies, particularly oil exports that play a crucial role in maintaining China's oil reserves, or economic development plans to be approved at the National People's Congress.