Jamie Dimon, the CEO of JPMorgan Chase & Co, emphasized the need for “full engagement” with China, despite its competitive stance against the West.
What Happened: Dimon, during an interview with Sky News in London, acknowledged the challenging competition posed by China but advocated for a nuanced approach to the country. He also expressed concerns over China’s alignment with Russia and the potential issues this could cause, particularly in relation to Taiwan.
“America has the right to do things to protect itself if it think there is unfair trade,” Dimon said.
Dimon’s remarks follow Chinese President Xi Jinping‘s visit to Europe, which was focused on stabilizing China’s relations with the continent.
Dimon stressed the importance of prioritizing geopolitics over the economy, given the ongoing conflicts in the Middle East and Ukraine. He also emphasized the need to keep the U.S.’s allies united in the face of global tensions and expressed regret that the Inflation Reduction Act was not developed in collaboration with other nations.
The CEO of the largest bank in America also reiterated his warning about the U.S. fiscal deficit, stating that while he does not foresee any immediate consequences, the country may face a more challenging situation if the markets force it to address the issue.
Why It Matters: Dimon’s call for comprehensive engagement with China comes at a time when the U.S. is taking a more assertive stance against the Asian superpower. President Joe Biden recently announced significant tariffs on Chinese goods to protect the American economy and counteract China’s subsidized production.
China, on the other hand, is making strides to reduce its reliance on foreign suppliers, particularly in the semiconductor industry. The country’s advancements in producing high-bandwidth memory chips are a significant step in this direction.
These developments, along with China’s topping the U.S. in semiconductor spending, underscore the intensifying competition between the two countries in the global tech industry. Against this backdrop, Dimon’s call for engagement with China takes on added significance.
Benzinga file Photo by Dustin Blitchok.
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