AP Images/Jacquelyn Martin
- The US should embrace full engagement with China, but expect a hard time along the way, JPMorgan CEO Jamie Dimon told Sky News.
- This will remain difficult as long as China is close to Russia, he noted.
- But Dimons says the US should treat Beijing as a competitor instead of an enemy.
JPMorgan CEO Jamie Dimon considers full US engagement as the right approach to China, but says obstacles will make it a difficult course to follow, he told Sky News.
Chief among issues is Beijing's strengthening relationship with Moscow, Dimon told the outlet on Wednesday: "As long as China is kind of on the side of Russia, we're going to have a hard time."
In many ways, the two countries have aligned themselves as the up-and-coming alternative to the Western order, and China has become a major counterpoint to the numerous sanctions burdening the Russian economy since its invasion of Ukraine.
Geopolitically, both nations are also pursuing a "no-limits" partnership, and have recently engaged in a joint military exercise near Taiwan. The straight — a point of contention between US and China — will also remain a barrier to productive talks, Dimon cited.
But aside from these headwinds, Dimon said that the US and its allies are in a good state to take on Beijing, and should approach it as a serious competitor, but not necessarily an enemy
"We have competition with China. I think the American government is doing the right thing to fully engage. That doesn't mean that China's going to like everything we do, just like we don't like everything they do, but it doesn't have to be war," he said. "It can be tough competition, and we should be prepared for that."
In this mindset, Dimon cited that the US shouldn't shy away from trade, despite some downsides that receive too much emphasis, he said.
"There are some downsides to trade. We focus too much on that," he said. "We should count our blessings, be strategic, be very thoughtful, fully engage with China. They're not an enemy — but they're competing."
His comments followed after President Biden issued a slew of tariffs against Chinese imports, which included quadrupling the tax rate on electric vehicle products.