President Joe Biden is confronting a dual challenge on the global stage at the Asia-Pacific Economic Cooperation (APEC) forum in San Francisco. As he addresses voter discontent linked to his economic strategy, known as Bidenomics, the president is also navigating the complexities of preventing a recession, reducing dependence on China, and engaging in diplomatic discussions with Chinese President Xi Jinping.
Acknowledging the disconnect between economic data and public sentiment in his address to CEOs at APEC, Biden emphasized ongoing efforts to deliver tangible benefits to the American people. Despite domestic criticism of Bidenomics, he clarified that the U.S. is not opting for an economic decoupling from China but rather pursuing a strategy of de-risking and diversifying.
This stance follows Chinese President Xi’s criticism of what he perceives as Biden’s protectionist approach to supply chains. During a face-to-face meeting on the sidelines of APEC, Xi highlighted the potential for both countries to succeed without hindering each other’s progress, provided they respect each other and pursue cooperative solutions.
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Bidenomics faces intense scrutiny, with the president’s approval ratings at 40.5%, compared to a disapproval rate of 56.5%. Despite concerns, the consumer price index remained stable, showing no change from the previous month. However, the annual inflation rate rose by 3.2%, with core inflation experiencing a 0.2% and 4% increase, respectively.
Positive job and unemployment reports indicate a promising trajectory, but the unemployment rate increased to 3.9%, marking the highest level since January 2022.
The strained relationship between the U.S. and China further complicates matters. The APEC CEO Summit, with Xi as the guest of honor, added complexity to ongoing diplomatic tensions. High-profile executives, including Elon Musk, Jane Fraser, Darren Woods, and Satya Nadella, paid $40,000 for eight-seat tables at the event.
Former Trump State Department official David Stilwell criticized the lack of emphasis on trade issues during the Biden-Xi meeting at APEC. Republicans, from House Foreign Affairs Committee Chairman Michael McCaul to the Republican National Committee, scrutinize Biden’s economic and China-related policies, expressing concern about perceived concessions without tangible outcomes and the U.S. appearing weak in diplomatic negotiations.
