China's Exclusive Security Approach In High-Stakes US Trade Talks

Felix Dubois

4 min read

Post on May 10, 2025

4.6

Share

National Security as a Non-Negotiable Priority

China's view of national security extends far beyond military might. It encompasses economic, technological, and political spheres, intricately interwoven and considered inseparable. This holistic understanding fundamentally shapes China's approach to trade negotiations. Economic security is viewed as an integral component of national security, making concessions in trade that compromise this security highly unlikely.

• Emphasis on self-reliance ("self-sufficiency"): China's drive for self-reliance, often referred to as zizhu, is a cornerstone of its national security strategy. This manifests in reducing reliance on foreign technology and bolstering domestic industries.
• Protecting strategic industries: Industries like 5G, semiconductors, and artificial intelligence are deemed critical for national security. Protecting these sectors from foreign competition is a non-negotiable priority, influencing China's stance in trade discussions.
• Trade as a tool for national security: China actively uses trade as a lever to achieve its national security goals, employing tariffs, subsidies, and other trade measures to protect domestic industries and gain leverage in international relations.
• Made in China 2025: This ambitious plan, aimed at upgrading Chinese industries and achieving global leadership in key technological sectors, exemplifies China’s commitment to economic and national security through strategic industrial development. It directly impacts negotiations related to technology transfer and intellectual property rights.

The Role of State-Owned Enterprises (SOEs) in Trade Negotiations

State-Owned Enterprises (SOEs) play a pivotal role in the Chinese economy, wielding considerable influence on trade negotiations. Their involvement significantly shapes China's negotiating positions and strategies.

• Strategic importance in key sectors: SOEs dominate many strategic sectors, from energy and telecommunications to finance and technology. Their performance is directly linked to national economic goals and national security.
• Close relationship with the Chinese government: SOEs enjoy close ties with the government, often acting as instruments of state policy. This close relationship translates into a strong alignment between the government's negotiating objectives and the SOEs' actions in international trade.
• Shaping China's negotiating positions: The government's directives heavily influence the SOEs' negotiating positions. This integration makes it difficult to separate commercial interests from broader national security concerns.
• Examples of SOEs' influence: The involvement of Chinese SOEs in negotiations regarding infrastructure projects, technology licensing, and access to resources demonstrates their crucial role in shaping trade outcomes.

Information Control and Strategic Communication

China's approach to managing information during trade talks is characterized by strategic communication and tight control over narratives. This impacts trust-building and the overall negotiation process.

• Use of propaganda and controlled media narratives: China uses propaganda and controlled media to shape domestic and international public perception regarding trade disputes, often framing narratives to support its national interests.
• Shaping public perception: The government's focus on shaping public perception, both domestically and internationally, is critical to maintaining support for its policies and negotiating positions.
• Challenges in verifying information: The controlled flow of information makes it difficult to independently verify claims and achieve a shared understanding of the situation, hindering effective consensus-building.
• Impact on trust-building: The lack of transparency and the controlled nature of communication can impede trust-building, creating challenges in establishing a foundation for mutually beneficial agreements.

Data Security and Technological Dependence

Concerns over data security and technological dependence significantly influence China's approach to trade negotiations. These concerns are deeply intertwined with national security considerations.

• Concerns over US tech dominance and data access: China is wary of US technological dominance and potential access to sensitive data. This fuels its efforts to develop indigenous technologies and protect its own data infrastructure.
• Measures to protect Chinese data and technology: China has implemented numerous measures to safeguard its data and technology, including strict regulations on data transfer and foreign investment in sensitive sectors.
• Impact on trade negotiations: These concerns significantly impact negotiations concerning technology transfer, intellectual property rights, and access to sensitive technologies, often leading to protracted disputes.
• Examples of specific disputes: Disputes regarding the use of Huawei’s 5G technology and data sharing agreements illustrate the tension between national security concerns and trade liberalization.

Conclusion

China's unique security approach, deeply integrated into its economic strategy, significantly shapes its participation in US trade talks. The interconnectedness of economic and national security is paramount in China's decision-making process. Understanding this approach, with its emphasis on self-reliance, the role of SOEs, strategic information control, and data security, is critical for interpreting China's actions and negotiating effectively. Understanding China's trade security approach is crucial for navigating the complexities of future US-China trade negotiations. Further research into China's trade security approach will provide valuable insights into the dynamics of this critical relationship. Continue exploring this topic to gain a deeper understanding of the strategic considerations driving these high-stakes talks.