Biden may see eye-to-eye with China on 2 things, states ex-IMF China head

The U.S. under a Biden administration might comply with China on healthcare and environment modification, even as the 2 nations stay far apart on other concerns, stated Eswar Prasad, a previous head of the International Monetary Fund’s China department.

President-choose Joe Biden has actually made the coronavirus break out among his top priorities and is anticipated to reveal a job force on Monday which will develop a strategy to include the infection. Biden likewise called environment alter the “number one issue facing humanity” throughout the project.  

“Both of these are issues that are very important to the incoming administration and certainly, on these issues at least China has to be seen as something of a partner even if not a close ally,” Prasad, now a teacher at Cornell University, informed CNBC’s “Squawk Box Asia” on Monday.

He mentioned in the location of healthcare, China — where Covid-19 was very first discovered — appears to have actually done a “reasonably good job” in dealing with the pandemic and its fallout. In regards to environment modification, the U.S. might not have the ability to accomplish much worldwide without China’s cooperation, he included.

“So these are areas where I think the two countries might see eye-to-eye, which I hope would provide a better basis for negotiation on much more difficult areas, especially economic and trade policies where there are contentious issues almost built in,” stated Prasad.

That does not suggest that relations in between the U.S. and China — which intensified under President Donald Trump — might deviate for the much better. Echoing the views of lots of professionals, Prasad stated the U.S. policy towards China is not likely to alter considerably.

That’s particularly so when the “baseline” of the U.S.-China relationship has actually moved in the last couple of years, he stated. The U.S., in basic, appeared to see no “real payoff” in having a cooperative relationship with China, he described.  

Still, the Biden administration would utilize a various tone and strategy in approaching Beijing, stated the teacher. The president-elect is most likely to staff his administration with individuals who worked under previous President Barack Obama, Prasad stated. Those individuals, he included, acknowledge that there might be advantages to dealing with China.

“I think the Biden administration will be much more strategic in its approach, recognizing that it may have to give in a few areas in order to gain broader concessions in many others,” he stated.