Nov. 16, New York (Reuters Breakingviews): Business leaders in America were ecstatic to see President Xi Jinping of China at the gala dinner on Wednesday in San Francisco. Reuters reports that they were so ecstatic that they gave him a standing ovation. It must be comforting for Xi to know that major corporations like Apple (AAPL.O), BlackRock (BLK.N), and Blackstone (BX.N) are on his side, particularly if political tensions between China and the US increase once more. This staged act may be more difficult for President Joe Biden to accept.
Noting that “China is a partner and friend of the United States,” Xi stood with other Chinese officials and top CEOs Tim Cook, Larry Fink, and Steve Schwarzman. The billionaire hedge fund manager Ray Dalio of Bridgewater declared himself “excited” to be friends with the Chinese president. Chinese official media said that the audience applauded more than ten times throughout Xi’s remarks.
Business executives in the United States are accustomed to courting Xi and his policies. Elon Musk, the CEO of Tesla (TSLA.O), had argued earlier this year that China should be included in discussions about regulations pertaining to artificial intelligence. He has supported China’s position on Taiwan, drawing comparisons between the autonomous island’s ties with the People’s Republic and Hawaii’s connection with the US. Apple CEO Tim Cook shook hands with Chinese Vice Premier Ding Xuexiang late last month, pledging to support China’s growth of its digital economy. The wealthiest businessmen in America, including Howard Schultz, the former CEO of Starbucks (SBUX.O), and Steve Schwarzman, have gone above and beyond to demonstrate their support for the nation.
Xi’s supper elevates the level of warmth. The US president acted as the go-between. It happened on US grounds. Even Biden complimented Xi before returning to his usual, harsher tone and labeling Xi as a despot. The CEOs of the corporations made no such statements. That makes sense to them. China’s economy is not only the second largest in the world, but it is also getting close to $20 trillion. Supply chains for US companies like Apple and Tesla still rely on strong relationships to be operational. Standing ovations are just another embarrassing new method of following the money.
However, while Xi returns with a resounding declaration of support, Biden receives something less appetizing: a reminder of the significance of Chinese trade and the impossibility of completely severing ties with China, no matter how strained they may get. Biden has a singular allegiance, but the CEOs who propel his economy don’t share this sentiment.