Nov 29, 2023 - Economy

China risks take center stage at DealBook summit

photo of a journalist, Andrew Ross Sorkin, and a woman, Taiwan's president Tsai Ing-wen, side by side in a virtual interview

Andrew Ross Sorkin and Taiwan President Tsai Ing-wen during The New York Times Dealbook Summit. Photo: Slaven Vlasic/Getty Images for The New York Times

Uncertainty around U.S.-China relations was a dominant theme at the New York Times DealBook Summit Wednesday, as well as a potential conflict with Taiwan.

Driving the news: "I think the Chinese leadership at this juncture is overwhelmed by its internal challenges," Taiwan President Tsai Ing-wen told Andrew Ross Sorkin.

  • "My thought is that perhaps this is not a time for them to consider a major invasion of Taiwan ... [and because] the international community has made it loud and clear that war is not an option and peace and stability serves everybody's interests."

JPMorgan CEO Jamie Dimon commented earlier in the day that "no one thinks [an invasion] is going to happen," given the more dire consequences that China would suffer.

  • "I'm not afraid of China," he said during the summit's opening interview, noting its "complex" Asian neighbors and "terrible demographics," alluding to its aging and shrinking population.

The big picture: Foreign investment into China turned negative for the first time on record during the third quarter this year — a reflection of deteriorating economic prospects, Axios' Matt Phillips has written.

  • Multinationals, most notably Apple, have been steering more of their operations away from direct ties to China after the pandemic revealed the risks of supply chain concentration.

What to watch: As U.S. regulations are being built to prevent China from advancing its AI technologies, chip makers are eying more ways to pull manufacturing out of the country.

  • "We are somewhere between a decade or two decades away from supply chain independence," Nvidia CEO Jensen Huang said Wednesday.
  • "Our systems [have] 35,000 parts ... supply chain independence is going to be really challenging ... [But] we should absolutely go down the journey of it."

Go deeper: What Biden-Xi meeting says about U.S. economic ties to China

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