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JPMorgan CEO Jamie Dimon said he believes full U.S. involvement is the right approach to China, but obstacles will complicate that path. sky news.
The biggest issue is the strengthening of ties between China and Russia, Dimon told the outlet on Wednesday: “As long as China is on Russia’s side, we’re going to have a hard time.”
In many ways, the two countries are aligned as up-and-coming alternatives to the Western order, with China serving as the main counterpoint to the sanctions that have strained Russia’s economy since its invasion of Ukraine.
Geopolitically, the two countries pursue an “unrestricted” partnership, recently holding joint military exercises near Taiwan. Dimon said the straight issue between the United States and China will also remain a barrier to productive talks.
But aside from these headwinds, Dimon said the United States and its allies are in good position to counter China and should approach China as a serious competitor, but not necessarily an enemy.
“We’re in competition with China. I think it’s right for the U.S. government to be fully involved. That doesn’t mean China will like everything we do. It’s like not liking everything, but it doesn’t have to be a war,” he said. “It could be tough competition, so we need to be prepared for that.”
With that in mind, Dimon said the U.S. should not shy away from trade, despite some of the downsides being overemphasized.
“There are some downsides to the trade, and we focus too much on that,” he said. “We should cherish our blessings, be strategic, be very thoughtful, and fully engage with China. China is not our enemy, but we are in competition.”
His comments came after President Biden imposed a slew of tariffs on imports from China, including quadrupling the tax rate on electric vehicle products.