Xi skirts politics to fast-track U.S. business ties

The President sought to reassure his hosts that China would not drive down the value of the yuan to boost exports.

Chinese President Xi Jinping has begun a much anticipated visit to the United States by launching a charm offensive targeting U.S. corporate giants.

Chinese President Xi Jinping has begun a much anticipated visit to the United States by launching a charm offensive targeting U.S. corporate giants, signalling that resetting business ties outside the U.S. capital may be more important than spending quality time in Washington.

President Xi will spend more time in the Seattle-headquarters of global icons including Boeing and Microsoft — than in the U.S. capital. Prickly issues such as cyber security and the South China Sea, buttressed by President Barack Obama’s Rebalance military doctrine in the Asia-Pacific, have begun to sully the Sino-U.S. political climate.

Accusations of commercial hacking to steal business secrets from top U.S. companies have also begun to impact the relationship with the corporates. China has begun to feel the heat as it seeks massive infusion of hi-technology to fire its economy to the next tech-intensive level.

Unsurprisingly, during his public address in Seattle — the only one during his intensely monitored visit —President Xi called for the establishment of “a high-level joint dialogue mechanism with the United States on fighting cyber-crimes.”

“The Chinese government will not in whatever form engage in commercial theft, and hacking against government networks are crimes that must be punished in accordance with the law and relevant international treaties,” he observed.

The New York Times has reported that the U.S. and China are negotiating a deal which could become the first arms control accord for cyberspace. This involves a commitment by each country that it will not be the first to use cyber-weapons in peacetime, which would target the other's critical infrastructure.

Mr. Xi also focused on delivering two other messages tailored for a foreign business audience: There would be no let up in economic reforms and no discrimination against foreign companies.

“When it comes to the toughest reforms, only those with courage will carry the day,” he asserted. “We will stick to the direction of economic reform.”

The President sought to reassure his hosts that China would not drive down the value of the yuan to boost exports.

Nor was the country’s anti-corruption drive a ‘House of Cards’ type power struggle.

Early into the visit, the broad accent of the visit has become discernible. President Xi wants to focus on businesses and states, and parry the headwinds emerging from Washington’s political core.

China’s state-run television, CCTV is reporting that in Seattle, Mr. Xi would tour Microsoft’s campus in Redmond, where he may attend the China-U.S. Internet Industry Forum hosted by Microsoft .

Guests include representatives from Baidu and Alibaba in China and from Apple, Facebook, Google and IBM.

Among U.S. states, car-making Michigan has already attracted a significant $600 million investment from China.

In neighbouring Ohio, China’s Fuyao Glass has taken over a rusting General Motors factory for $200m, signalling China’s long haul business inclinations in reviving U.S. manufacturing strongholds with a healthy flow of capital from Beijing.