With Chinese President Xi Jinping's first state visit to the U.S. right around the corner (and on that note, what we know now is that President Xi will attend U.N. events that commeorate the 70th anniversary of the founding of the organization at the end of September, but we have yet to see a definite arrival date (Sept. 21 update: President Xi is set to arrive in the U.S. on Tuesday, Sept. 22). I'm sure when the man arrives, photos and videos will help us track his every step, but his traveling dates are usually not revealed ahead of time for security purposes), speculations about what the two MVPs –– the Most Vital Politicians –– will potentially discuss are hyping up all around.
The upcoming state visit will not be the first face-to-face between the two. In 2013, Xi met with President Obama privately at the Sunnylands ranch in California. This later became known as the "Shirt-Sleeves summit" due to the much casual dress code (no neckties). Despite the casual formality, the conversations were kept private with little information released to the public.
But with all the China-immediate-relevant current events spreading across the news outlets in the past month, especially focusing on China's stock market, many of us could guess some heated topics that may appear during the talks between the "G2 leaders," for instance, environmental issues and greenhouse gas emissions, Iran nuclear deal and more likely than not, the topics listed below, although my point of view tells me that pressing on these topics would likely yield unproductive results.
1. CURRENCY DEVALUATION
One of the main reasons China devalued its currency in August is its attempt to regain Chinese-made products' popularity in foreign markets. "Made-in-China" has lost quite a lot of market to products made in countries like Bangladesh and Combodia in the textile industry, while Turky and some other smaller European countries have the more sophisticated techniques with producing higher-end products. China, which has long benefited from international trade during its own development, is not that dumb to not try to maintain their advantage over others. Devaluing the currency helps keep the products cheap and appealing for foreign buyers, and is almost used as a desperate measure under the country's sliding economic outlook. Pressuing China on currency devluation does nothing above just voicing opinions because we all know when people have no other options, no pressure could make them give up their last straw.
2. THE BOARDER DISPUTE
I always say the boarder dispute is less about territory or security, but more about Beijing wanting to maintain certain image among the Chinese people. Backing down from the dispute is not an option, because it demonstrates weakness and the opposite of patriotism. Besides, focusing on their conflicts with other countries is Beijing's way to distract the attention people may have on the conflicts within the nation. So that is a strategy they will maintain regardless of other countries' positions on it.
3. STOCK MARKET ROLLER COASTER
If the first two issues are pointless to discuss because it would be impossible to convince China to turn around and do something different about them, this topic is pointless to discuss because China doesn't even know what to do. Bare in mind, China's stock market is relatively new compared to those of many developed countries. So Chinese government is also new to dealing with the stock market ups and downs. In the past month, Chinese government has demonstrated a lack of calm in facing the recent stock market mini-freak-outs. Good luck to the U.S. to try to give them a tip or two, but it's up to the Chinese themselves to figure out how they could cope with the cycles in this new normal state of economy.
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