Starbucks can promote US-China trade, Chinese President Xi Jinping says in letter to its ex-boss

16-Jan-2021 Intellasia | South China Morning Post | 6:02 AM Print This Post

Chinese President Xi Jinping has told Starbucks’ former chair Howard Schultz that he and the American coffee chain can play an active role in promoting US-China trade cooperation, state media reported.

With less than a week before US president-elect Joe Biden takes office, Chinese state media published a letter Xi wrote, reportedly in reply to correspondence from Schultz, who has the honorary title of Starbucks’ chair emeritus.

The coverage of the letter on Thursday came almost exactly a year after a partial trade deal between the two nations was signed in an effort to pause their tariff war.

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Xi’s letter, dated January 6, was quoted by Chinese state news agency Xinhua as saying: “China has embarked on the journey of becoming a modernised socialist country, [we] will further open up to enterprises all over the world including American companies like Starbucks. [We] hope Starbucks can play an active role in promoting US-China trade cooperation and bilateral ties.”

In a statement, Schultz said it was a “great honour” to have received a reply from Xi and he believed “Starbucks’ best days are ahead in China”.

Billionaire Schultz, who left the Democratic Party last year over disagreements on a host of issues, once said he was considering running for president in 2020 as an independent, before later dropping the plan and throwing his support behind Biden before November’s US election.

The extensive coverage of the letter from Chinese state media came a day before the first anniversary of the interim trade deal that China and the US signed on January 15 last year.

It called a partial ceasefire in a trade war started under outgoing US President Donald Trump in July 2018, after rounds of tit-for-tat tariffs were slapped on billions of dollars worth of products, disrupting global supply chains.

Under the interim deal, Washington agreed to cut some tariffs in exchange for China committing to buy at least $200 billion more of US goods and services over two years compared with 2017 levels. However, China has been falling behind in its import commitments, according to trade reports.

It is unclear how the new administration will take on the trade war started by Trump but Biden said in an interview in December that the tariffs would remain in place for now.

Meanwhile, Schultz, like the heads of many American enterprises aiming to expand in the lucrative Chinese market, has lamented the trade war, saying the US should be building bridges instead of walls.

When he was still the company’s chief executive in 2016, he had predicted the Chinese market would one day be bigger than the American one for Starbucks.

China is now Starbucks’ top overseas growth market after it entered the country in 1999. It has more than 4,700 outlets in mainland China.

Beijing has often used US business leaders as interlocutors for relations with the United States, but American businesses have largely remained silent as those relations turned sour under Trump.

Schultz was known to have connections with top leaders of the Chinese Communist Party, including having a meeting in 2012 with the former president Jiang Zemin.

Huang Jing, a professor at Beijing Language and Culture University, said Xi’s reply signalled Beijing’s commitment to ensuring a good business environment to foreign investors and a readiness to improve relations.

“Xi’s reply indicates that China will always be open to the United States and to the world, not decoupling with any country,” Huang said.

“Unlike Trump, Biden knows the US cannot win the game against China all by itself, so it needs allies, and to engage in multilateralism. This will offer China opportunities for cooperation with the US, such as on non-proliferation [of nuclear weapons] and cracking down on terrorism.”

https://sg.news.yahoo.com/starbucks-promote-us-china-trade-062739542.html

 

Category: China

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