Biden takes firm stance on China investments: No more trade secret surrenders

"I don't wish to sever ties with the Chinese economy, but I can no longer allow investments in China to involve surrendering trade secrets," US President Joe Biden stated on Tuesday, ahead of his meeting with Chinese leader Xi Jinping.

"We aren't trying to disconnect from China. What we're attempting to do is to improve our relationship," Biden stated during a speech at the White House regarding new investments in green transformation.

"In my view, the Chinese are facing economic difficulties" said Biden. He maintained if the average citizen in China can secure a well-paying job, it benefits everyone involved. However, he insisted that he will no longer support a protocol where investors in China are compelled to give away their trade secrets."

Asked about his expectations for Wednesday's meeting with Xi Jinping near San Francisco, Biden expressed hope for the resumption of normal communication with Beijing.

"So we can simply pick up the phone and discuss during a crisis, ensuring our military forces continue to interact with each other" he added.

According to economists' forecast at Goldman Sachs, China's GDP growth will be 5.3 percent in 2023. It is expected to slow down to 4.5 percent next year, then to 4.0 percent in 2025, before dropping to 3.0 percent by 2033. The declining rates are associated with an anticipated slowdown in the real estate market.

The real estate sector is a major constituent of the Chinese economy. Goldman Sachs economists estimate that construction related to real estate recently constituted nearly 18 percent of Chinese GDP. This figure extends to almost 30 percent when infrastructure and services related to real estate are included.

Goldman Sachs specialists noted that China's non-financial debt has nearly doubled since the 2008 crisis, rising from a level below 150 percent of GDP to 289 percent at the end of 2023.