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US-China relations
EconomyGlobal Economy

Exclusive | US, China discuss investment revival ahead of Trump’s trip: sources

Both sides exploring structured joint ventures and licensing deals, with Beijing seeking protection and Washington eyeing better market access amid declining capital flows

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US President Donald Trump and President Xi Jinping shake hands at an October meeting in South Korea. The two are expected to meet again in four weeks. Photo: Reuters
Kandy Wongin Hong KongandFrank Chenin Shanghai

Beijing and Washington have begun discussing ways to revive reciprocal investment – a move that could be one of the few deliverables during an upcoming China visit by US President Donald Trump, according to multiple sources.

The investment issue was touched upon as working-level officials prepared for Trump’s trip, which is scheduled to take place between March 31 and April 2. However, the potential scope and structure of such investments remain undefined, sources said.

One source said both parties were interested in tightly structured joint ventures, licensing arrangements, and so-called intellectual property-light models designed to withstand political and regulatory scrutiny.

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“The Ford-CATL arrangement [is] a possible template,” the person added, referring to a 2023 deal that saw the American auto giant license lithium ferrous phosphate battery technology from Chinese battery giant Contemporary Amperex Technology for a US plant.

In January, John Moolenaar, chairman of the House Select Committee on China, sent a letter to Ford CEO Jim Farley asking whether changes had been made to the company’s licensing agreement with CATL since new eligibility restrictions were put in place. Moolenaar noted how CATL was “a Pentagon-designated Chinese military company” – a claim that the battery firm has long denied.

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Beijing has long viewed its economic relationship with the US – marked by hundreds of billions of dollars in annual trade and investment flows – as the bedrock of broader diplomatic ties.

The Chinese side was said to have raised concerns about investment protection, as stricter scrutiny of its investments in the United States has already led to declines and some withdrawals. China’s representatives also discussed the listing of Chinese companies. Meanwhile, US representatives solicited views about access to the Chinese market.

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