Economic and geopolitical factors

  • The Trump Administration remains cautious toward the Belt and Road Initiative (BRI). No policy decision has been made about U.S. participation, which American corporations encourage in order to pursue business opportunities with China.
  • Contrast: The Obama Administration lacked a business perspective toward China — linked Chinese geopolitical behavior to the Bilateral Investment Treaty (BIT)
  • Trump Administration assessing whether to join the AIIB (Asia Infrastructure Investment Bank) until overall trade policy is formulated.
  • China instituted a re-regulation of their financial system — over 5,000 pages of new regulations have been written. New regulations establish the technical basis for payments to be made to American corporations involved in economic dealings with China.
  • Initial agreements reached — part of the 100-day trade negotiations established at Mar-a-Largo. American financial institutions received broader access to Chinese markets.
  • Commerce Secretary Wilbur Ross’ negotiations on BIT progressing. Overall objective is to strengthen the global economy.
  • U.S. financial institutions are building a broader foundation for more U.S. corporate participation.
  • U.S. financial engagement structure assists in managing BRI projects. Greater U.S. commercial engagement with China is anticipated.
  • Japan and India will approach involvement based on economic and national interests. Geopolitical considerations, as well as market opportunities, form the basis of their respective policies.
  • India sent a low-level delegation was based on India’s geopolitical concerns, including the unresolved Kashmir dispute with Pakistan.
  • Funds for the China Pakistan Economic Corridor (CPEC) managed by the AIIB and other lending institutions is very limited. High costs are linked to ISIS/al-Qaeda destabilizing effect