While companies are not expecting sweeping agreements, even modest outcomes could help stabilise sentiment, Hart added.
“People aren’t looking for a grand bargain or a huge, long list of things, but two or three things would be helpful.”
Potential areas of progress could include agriculture, such as increased US soybean exports, reduced restrictions on US beef, and cooperation in aviation.
STRUCTURAL ISSUES STILL OF CONCERN
Still, structural issues highlighted in the white paper, including regulatory inconsistency, remain a key concern for businesses operating in China.
“The central government would say: ‘Yes, we want to make sure that American companies or foreign companies have equal access.’ But when it comes down to the local provinces, sometimes the implementation is not necessarily consistent,” Hart pointed out.
Challenges around government procurement, particularly in sectors such as healthcare, also continue to affect foreign firms’ ability to compete on equal footing, he added.
Despite these pressures, Hart said many US companies remain committed to China, drawn by its market scale and growth potential.
He stressed that having a presence in China remains critical for global competitiveness, particularly in certain areas of research and development like life sciences and manufacturing.
“One of our CEOs told his company: ‘Look, if you don’t want us to play in China, what you’re actually advocating is for our company to be smaller globally. Is that what you want?’
“Very few companies want to get small globally, and so you do need to participate in China and the large market that it is,” Hart added.