Newsom reiterates commitment to preserving US-China relations amidst talks with Xi

California Governor Gavin Newsom, after meeting with Chinese leader Xi Jinping, emphasized that "Divorce is not an option" when it comes to the two largest economies in the world. In an interview with CNN's Christiane Amanpour, Newsom expressed optimism that his meeting with Xi in Beijing had sparked a glimmer of hope for a positive shift in relations between the United States and China.

"We need to reduce the intensity of the conflict, address our strategic differences, and find a way to reconcile our non-negotiable priorities," he stated.

Newsom, the first American governor to engage in a meeting with Xi in the past six years, is currently in China for a week-long visit aimed at advocating for measures against climate change. This visit takes place amidst escalating tensions between the two nations, resulting in mutual restrictions on the export of crucial technological resources, including semiconductors and their production equipment.

"Clearly, this issue was raised and there is apprehension in that area," stated Newsom regarding the imposed limitations.

However, he expressed that the opportunity to meet with the country's highest-ranking leader demonstrated a positive shift. Additionally, the governor has organized several meetings with various prominent Chinese officials, signifying a potential initiation of a new stage, Newsom further emphasized.

A Nvidia HGX H100 server is displayed at the company's headquarters in Santa Clara, California, US, on Monday, June 5, 2023. Nvidia Corp. has become a key player in the global technology industry, dominating 80% of the market for data-center accelerators, a specific type of chip. The demand for Nvidia's AI processors is so high that the current waiting period is eight months.

Photographer: Marlena Sloss/Bloomberg via Getty Images

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In the past few months, several high-ranking US officials have made visits to China, consistently emphasizing that they do not aim to disconnect from China. Instead, they have highlighted the importance of "derisking" or decreasing reliance on the world's second-largest economy.

Governor Newsom mentioned that he also stressed the same point during his discussions with Chinese leaders. He further stated, "Competition is positive and beneficial. However, derisking should not be confused with decoupling... To me, it simply means diversification."

According to Xinhua, the Chinese state news agency, Xi informed Newsom on Wednesday that the progress in the bilateral relations between the two countries had been hard-won and should therefore be valued. Xi also expressed hope that the visit of the governor to China would contribute to stabilizing the broader relationship.

The visit has already created a positive impression, particularly after Newsom's trip to Shenzhen, a major city in southern China, on Tuesday. The governor was seen happily taking a test drive in an autonomous SUV made by BYD, the leading Chinese electric vehicle manufacturer. He praised the company's technology and was quoted by Chinese state media as saying, "I want two."

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Chinese state-run tabloid Global Times wrote on Wednesday that the visit of China's top diplomat to Washington this week has been seen as a positive signal indicating a willingness to prioritize practical cooperation rather than engage in zero-sum geopolitical games at the state government level.

Newsom's administration previously collaborated with BYD, and the American branch of the automotive company had sent millions of N95 masks to California during the initial phase of the Covid outbreak. This assistance aided in the state's reopening, as mentioned in a prior statement by Newsom.

Acknowledging the interdependence between the United States and China, the governor expressed that the continuous economic downturn in China has likely exerted greater strain on Beijing in recent times.

Officials are highly aware of the challenges posed by the property crisis and the post-pandemic reopening to the world. This awareness also contributes to their desire to start fresh and revitalize our long-established relationship, he emphasized.

Based on official state data, China holds the position of California's largest trading partner, engaging in a two-way trade amounting to roughly $166 billion in 2022.

The US state has outsize economic heft, recording $3.6 trillion in gross domestic product in 2022. If it were a country, California "would be the fifth largest economy in the world," Newsom told CNN.