China projects ‘outward confidence’ amid economic anxiety, US congressional panel says

A US congressional advisory committee observed a facade of confidence in China amid underlying economic anxieties, during a recent week-long visit to Beijing, Shanghai, and Hangzhou. The US-China Economic and Security Review Commission (USCC) detailed their findings in a press briefing, with their chairman, Randy Shriver, noting the apparent assurance displayed by Chinese officials.

Shriver, a former assistant secretary of defence for Indo-Pacific security affairs, highlighted the significance of firsthand observation of China's development, contrasting it with media reports of "ghost cities."

Commissioner Chris Slevin underscored the palpable confidence expressed in discussions about artificial intelligence, attributing it to China's leadership in AI and global ambitions. However, the commission expressed disappointment in being denied access to Hangzhou's "Six Little Dragons," a cluster of rising technology companies, which they believed was telling of China's reluctance to fully expose its AI sector.

The USCC, a non-partisan panel advising lawmakers, called for a comprehensive, whole-of-government approach to address China's national security implications in the US-China economic and trade relationship. They suggested establishing a new economic-statecraft entity to oversee sanctions, export controls, and other measures targeting technology, supply chains, manufacturing, defence, and Taiwan.

China's deputy permanent representative to the United Nations, Geng Shuang, attended the trip, alongside representatives from the Ministry of Foreign Affairs, the Ministry of Commerce, and the Office for International Military Cooperation of the Central Military Commission. Despite these interactions, Chinese officials remained cautious, providing minimal specifics on critical issues such as the proposed US-China "board of trade" and Xi's upcoming US visit.

Taiwan was a recurring topic of discussion, with Chinese officials often highlighting the issue and expressing concern over US arms sales to Taiwan, which they perceived as a potential threat to Beijing's claim on the island. The USCC, an independent body founded in 2000, aims to provide lawmakers with insights into China's strategic intentions through annual reports.