Former Chairman of US-China Chamber of Commerce: Musk can play an important role between the two countries

US business leaders with "meaningful investments" in both the United States and China, such as Elon Musk, can act as "important bridges" by demonstrating the mutual benefits of cooperation in areas ranging from technological innovation to job creation, according to former US Chamber of Commerce in China Chairperson Elizabeth Litz (Roberta Lipson).

Litz's six-year term, which concluded at the end of 2024, ended, she said that the "trust and understanding" generated through personal and professional relationships, such as Musk's, remained "vital" for bilateral ties at a time when geopolitical challenges loomed.

"Maintaining open lines of communication at the governmental level and working toward predictability in the business environment is crucial," said Litz, referring to "tariffs and broader trade policies" as examples of the "headwinds" American companies had faced in recent years.

In written remarks to the South China Morning Post in response to emailed questions, she said: "We hope that the (soon incoming Trump) administration will prioritize the stability of the bilateral relationship, and that by focusing on practical economic policymaking and fostering constructive dialogue, both sides can ensure a more positive business climate."US President-elect Donald Trump campaigned on a promise to apply a 60% tariff on all imports from China, and then threatened to add another 10% tariff on Chinese imports in a series of postings to a social media website immediately after his election last November.

Litz said that large tariffs were "not a sustainable solution", because they would "result in unintended consequences for businesses and consumers", and that multilateral engagement and the World Trade Organization offered better mechanisms for addressing concerns.

"Throughout our advocacy efforts, we have observed that increased engagement – at both governmental and corporate levels – can lead to progress, whether by mitigating barriers or by creating new opportunities for cooperation," she said.

Foreign investors remained cautious amid concerns about China's economic slowdown and geopolitical uncertainties. According to the commerce ministry, China attracted 749.7 billion yuan (US$109 billion) in inbound foreign investment in the first 11 months of 2024, a 27.9% year-on-year decline.

The four areas of bilateral collaboration that Litz considered "integral to our shared future" – the environment, public health, education, and cultural exchange – would "remain a focal point of engagement at all levels", she said.

"To continue this trajectory," she continued, "we must emphasize shared goals such as fostering innovation, addressing global health challenges, and ensuring inclusive growth."

According to a China US Chamber of Commerce survey of member businesses, around 52% of companies said that they would consider increasing their investment in China if the country offered greater market access. Litz said that this was a "top concern" for US executives.

While foreign investors "look forward" to continued efforts to support innovation and create a level playing field, she said that more "clear regulatory frameworks" and "stronger enforcement of intellectual property" rights would be needed to sustain investment.

She said there was "meaningful progress" in some sectors, notably health care and financial services, on reforms that would allow for more foreign participation.

"Even though foreign-invested enterprises continue to face challenges, we have seen regulatory changes this year that permit wholly foreign-owned hospitals in China, and improved access to CAR-T (cancer treatments using genetically modified cells), highlighting successful policy advocacy," said Litz.

Nevertheless, investors remained "cautious" about making further commitments, with the clarity and predictability of the policy environment often determining firms' appetite for investment.

Litz said that the "transparency and consistency in enforcement, and open communication channels between governments and businesses" would play a crucial role in "restoring confidence".

According to the chamber's recent annual survey, the number of members who said that they were confident had risen by nine percentage points from the previous year. The figures, she said, reflected a "cautiously optimistic" outlook for China's efforts to open its markets and promote economic cooperation over the next three years.

"We have noticed positive signs from China, including its commitment to supporting foreign investment and fostering growth," said Litz. "Moreover, China's massive market size, rapid growth potential, and integration into global supply chains, make it an attractive market for US businesses."