China-US Trade Talks: Exclusive Insight Into Xi Jinping's Security Focus

Natalie Brooks

6 min read

Post on May 10, 2025

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Xi Jinping's National Security Doctrine and its Impact on Trade Negotiations

Xi Jinping's national security doctrine represents a fundamental departure from previous approaches. It prioritizes the comprehensive security of the nation, encompassing not only military strength but also economic prosperity, technological advancement, and social stability. This holistic view profoundly influences China's stance in trade negotiations with the US. Core tenets of this doctrine include:

• Emphasis on self-reliance ("Guanzhu") in key technologies: China aims to reduce its dependence on foreign technology, particularly in strategically vital sectors like semiconductors, artificial intelligence (AI), and 5G. This drive for technological independence directly impacts trade negotiations, leading to demands for fair technology transfer and resistance against US attempts to restrict access to advanced technologies.

• Concerns about US technological dominance and potential containment: Xi Jinping's administration perceives US technological dominance as a potential threat to China's rise and national sovereignty. The perception of US efforts to contain China's technological progress fuels a strong desire for technological self-sufficiency and a reluctance to make concessions that could compromise this goal. This concern significantly influences the concessions China is willing to make in trade negotiations.

• The role of state-owned enterprises (SOEs) in achieving national security goals: SOEs play a critical role in implementing Xi Jinping's national security strategy. They are often at the forefront of technological innovation and are instrumental in securing access to crucial resources and technologies. This central role of SOEs shapes China's negotiating tactics in trade discussions.

• Protection of Chinese intellectual property and sensitive technologies: Protecting intellectual property and sensitive technologies is a paramount national security concern for China. This translates into a firm stance against what China perceives as unfair trade practices and intellectual property theft by US companies.

These tenets translate into specific demands during trade talks, including greater market access for Chinese companies, protection for Chinese intellectual property, and a reduction in US tariffs and restrictions on technology exports. China's willingness to compromise is often directly tied to its perceived national security interests.

Economic Security as a Pillar of National Security

Xi Jinping views economic security as intrinsically linked to national security. A robust and resilient economy is seen as essential for maintaining national strength and independence. This perspective fundamentally shapes China's approach to trade negotiations with the US. Key aspects include:

• Focus on reducing reliance on foreign technology and supply chains: China is actively working to diversify its supply chains and reduce its dependence on foreign technology, particularly from the US. This effort is driven by concerns about potential disruptions caused by US sanctions or trade disputes.

• Investment in domestic industries and technological innovation: Massive investments in domestic industries and technological innovation are central to China's economic security strategy. This is reflected in initiatives like "Made in China 2025," which aims to upgrade China's manufacturing capabilities.

• Measures to protect critical infrastructure and data: Protecting critical infrastructure and sensitive data from foreign influence is a key priority. This involves tightening cybersecurity regulations and promoting the use of domestically produced technology.

• Concerns regarding US sanctions and their potential impact: The threat of US sanctions significantly influences China's negotiating stance. The potential impact of sanctions on the Chinese economy is a major concern, leading to a more cautious and assertive approach in trade negotiations.

These economic security concerns shape China's negotiating positions, leading to a demand for more favorable trade terms and a greater emphasis on protecting domestic industries.

Technological Security and the China-US Tech War

The technological rivalry between China and the US is a defining feature of their relationship and a significant factor in their trade talks. This "tech war" encompasses various sectors, including 5G, AI, and semiconductors.

• China's "Made in China 2025" initiative and its implications: This initiative highlights China's ambition to become a global leader in high-tech manufacturing. It directly challenges US technological dominance and is a major source of tension in the trade relationship.

• The US's efforts to restrict China's access to advanced technologies: The US has employed various measures, including export controls and sanctions, to restrict China's access to advanced technologies. These actions are seen by China as attempts to stifle its technological advancement.

• The impact of sanctions and export controls on Chinese companies: US sanctions and export controls have had a significant impact on Chinese companies, particularly those involved in sensitive technologies. This has further intensified the technological rivalry and influenced the dynamics of trade negotiations.

• China's countermeasures to US technological pressure: China has responded to US pressure with its own countermeasures, including investment in domestic technology, development of indigenous technologies, and retaliatory actions against US companies.

This technological competition profoundly influences the bargaining power of both nations. The struggle for technological supremacy is a central theme in China-US trade talks, shaping the concessions and demands made by both sides.

The Role of State-Owned Enterprises (SOEs)

State-owned enterprises (SOEs) are central to Xi Jinping's national security objectives. Their strategic role spans key sectors, including technology, energy, and infrastructure.

• SOEs' participation in key sectors like technology, energy, and infrastructure: SOEs are often at the forefront of development in these critical sectors, playing a vital role in achieving national security goals.

• Government support and protection for SOEs in the face of foreign competition: The Chinese government provides significant support and protection to its SOEs, giving them an advantage in competing with foreign companies. This support influences the dynamics of trade negotiations.

• The potential for SOEs to be used as leverage in trade negotiations: SOEs can be used as leverage in trade negotiations, creating both opportunities and challenges for reaching mutually beneficial agreements.

The significant role of SOEs raises concerns about fair competition and market access for foreign companies. Their close ties to the government raise questions about the transparency and fairness of trade practices.

Conclusion: Understanding Xi Jinping's Security Focus in China-US Trade Talks

Xi Jinping's security-focused approach fundamentally shapes China's strategy in trade negotiations with the US. National security, economic security, and technological security are inextricably linked in his vision, influencing China's demands and its willingness to compromise. The role of state-owned enterprises further complicates the situation, adding layers of strategic considerations to the negotiations. Understanding this interconnectedness is critical for navigating the complexities of China-US trade relations. To stay updated on the intricacies of China-US trade talks and Xi Jinping's evolving security priorities, continue following our analysis and insights on this critical geopolitical issue. The implications for future China-US trade negotiations under Xi Jinping's leadership are far-reaching and demand continued attention.