President Joe Biden has issued a stern warning to China over its support for Russia in the ongoing war against Ukraine, indicating that such actions will have significant repercussions.
Speaking at a press conference, Biden spotlighted that China’s alignment with Russia would come at a cost, particularly in its economic engagements with Europe and the Pacific Basin.
Biden highlighted the restrictive business environment in China, where foreign investments are heavily regulated and companies are compelled to share critical data with Chinese authorities.
“For example, if you want to invest in China, you have to have a 51-per cent Chinese owner. You have to make sure that you do by their rules, and provide all access to all the data and information you have,” he noted.
The President pointed out that previous administrations were enticed by China’s vast market potential, but the situation has shifted as the U.S. and its allies now insist on fair trade practices.
“We started saying we're going to play by the same rules. For example, the idea that they don't abide by the international rules related to subsidising products by the government funding. So, they're not going to be able to export their electric vehicles to the United States without a significant tariff,” Biden explained.
Biden also expressed concern over the alliance between China, North Korea, Russia, and Iran, noting their increasing coordination. He emphasized the need for a robust industrial policy in the West to bolster defense capabilities, particularly in Europe and Japan.
“We need a new industrial policy in the West... both the EU as well as NATO has to be able to begin to build their own munition capacity,” he said.
Discussing his strategy to handle China, Biden remained circumspect about the details but hinted at a collective Western effort to curb investments in China if it continues to support Russia.
“I think you'll see that some of our European friends are going to be curtailing their investment in China,” he indicated.
Biden stressed the importance of establishing a strong industrial base in the West to produce defensive weapons.
“We're going to be meeting again with a number of my colleagues, my European colleagues, to increase the capacity of the West... to produce their own weapon systems,” he mentioned.
The President also highlighted ongoing efforts to maintain direct communication with China despite recent tensions.
“We set up a new mechanism. There's a direct line between Xi and me, and our military has direct access to one another,” he said, referring to the diplomatic fallout following the incident involving a Chinese surveillance balloon earlier this year.
Biden reiterated that China must understand the economic consequences of aiding Russia, stating that Western investments would be reconsidered if China continues its current trajectory.
“China has to understand that if they are supplying Russia... they’re not going to benefit economically,” he warned.
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