US Commerce Secretary Raises Concerns Over Risks for Businesses in China During High-Level Meetings
US Commerce Secretary Gina Raimondo recently visited China to engage in high-level meetings with Chinese officials and address the growing concerns of US businesses operating in China. Raimondo, who oversees trade promotion and US limits on China’s access to advanced technology, expressed these concerns and emphasized the need for action to address issues such as intellectual property theft, business raids, a new counterespionage law, and exorbitant fines without explanations.
During a train ride from Beijing to Shanghai, Raimondo acknowledged the feedback from businesses that China has become too risky for investment. She highlighted the challenges faced by companies like Intel, Micron, and Boeing, citing Beijing’s obstruction of Intel’s acquisition, restrictions on Micron’s semiconductor sales, and the preference for Airbus jets over Boeing.
In these high-level meetings, Raimondo also addressed broader threats like climate change, fentanyl, and artificial intelligence, but she refused China’s request to reduce export controls on advanced technology and retract a recent executive order banning new investments in certain advanced technologies, citing national security concerns.
While Raimondo assured the Chinese officials that export controls apply to only a small proportion of US-China trade, she emphasized the importance of maintaining the trade relationship between the two countries, stating that an unstable economic relationship would be detrimental for both China and the US and have a negative impact on the global economy.
Chinese Premier Li Qiang acknowledged the mutually beneficial nature of the economic relations between China and the United States and warned against politicizing economic and trade issues, as it could undermine bilateral relations, mutual trust, and the interests of enterprises in both countries.
Raimondo’s visit is part of the Biden administration’s efforts to improve the US-China relationship and restore communications. She is the fourth senior Biden administration official to travel to China in three months, highlighting the significance of the trading relationship between the two countries.
During her visit, Raimondo met with China’s commerce minister, Wang Wentao, and they agreed to hold regular discussions on commercial issues. Both governments also agreed to exchange information about how the United States enforces its export controls, further promoting transparency and cooperation.
Additionally, Raimondo met with China’s minister of culture and tourism, Hu Heping, to discuss promoting the travel industry. The ministers agreed to organize a gathering in China early next year to boost tourism and strengthen business ties.
It is evident that while the US-China trade relationship has immense economic potential, there are significant challenges that need to be addressed. The discussions during Raimondo’s visit reflect a balanced approach that prioritizes national security while aiming to maintain and enhance the trade relationship between the two countries.
