Commerce Secretary of the United States Aims to Enhance Trade and Tourism Through Discussions with China

28 Aug, 2023

Commerce Secretary of the United States Aims to Enhance Trade and Tourism Through Discussions with China

Gina Raimondo, the U.S. Commerce Secretary, touched down in Beijing late on Sunday, commencing a four-day mission aimed at enhancing economic ties between the world's two largest economies. She firmly asserted that American national security trade measures were not up for discussion.

In a pre-departure statement on Friday, Raimondo framed the trip's essence as a combination of safeguarding imperative interests and fostering favorable opportunities. "I want to make it clear that I won't avoid frank discussions during my stay in China, but my approach will be practical," she reassured the reporters.

Amidst mounting tensions surrounding China's access to advanced semiconductors, closely coordinated with allies, the U.S. is seeking to curtail such access. In parallel, Beijing has imposed restrictions on shipments from notable chip manufacturer Micron Technology MU.O and penalized U.S. company Mintz Group with a $1.5 million fine for unauthorized statistical activities.

Accompanied by Chinese Commerce Ministry representative Lin Feng, Raimondo was welcomed upon her arrival. Bilateral discussions with Chinese officials in Beijing, scheduled for Monday and Tuesday, will precede her trip to Shanghai, joined by U.S. Ambassador to China Nicholas Burns.

Raimondo revealed a conversation with President Joe Biden before departure, emphasizing the potential of enhanced dialogue to ease tensions. "She emphasized our objective of forging a dependable commercial partnership founded on continuous communication. Ensuring conflict prevention through efficient communication is our foremost priority."

Controversy has arisen, with Congressional Republicans expressing concerns about a potential working group discussion on U.S. semiconductor export controls during Raimondo's visit. While no confirmation regarding such a group was given, Raimondo underscored her stance on matters of national security. "We do not compromise or negotiate on matters of national security," she asserted.

The U.S. is actively encouraging domestic businesses to reduce reliance on Chinese supply chains and elevate semiconductor production through government incentives and tax policies. "Our investments in America don't signify a desire to disconnect from China's economy," Raimondo clarified.

China's Ambassador to the U.S., Xie Feng, who recently met with Raimondo, articulated China's aspiration for "mutual respect, peaceful coexistence, and mutually beneficial cooperation."

In recent times, Raimondo marks the fourth high-ranking U.S. official to visit China and the first Commerce Secretary to embark on such a journey in seven years. She engaged with over a hundred senior business leaders prior to her visit, pledging to advocate for their concerns. "The challenges associated with doing business in and exporting to China are numerous, exacerbated by China's unfair trade practices that have adversely affected American companies and workers," Raimondo acknowledged.

As the prospect of President Xi Jinping's visit to the U.S. looms within three months, Wendy Cutler from the Asia Society Policy Institute noted Beijing's interest in collaborating with the U.S. to pinpoint pragmatic avenues of cooperation in the economic relationship.

Beyond economic matters, Raimondo also seeks to invigorate travel and tourism between the two nations. A recent agreement has doubled the permissible number of flights between China and the U.S., although this number remains a fraction of pre-pandemic figures. Raimondo estimated that a return to 2019 U.S. tourism levels from China could inject $30 billion into the U.S. economy and generate 50,000 jobs.

Raimondo is also contemplating a visit to Shanghai Disneyland, a collaborative effort between Walt Disney DIS.N and the Chinese state-owned Shendi Group, as per a Reuters source. Additionally, the resumption of deliveries of Boeing 737 MAX jets to Chinese airlines, suspended for four years, remains a pertinent question. Raimondo's 2021 statement alleging Chinese government hindrance in Boeing aircraft procurement is still relevant. Boeing has expressed readiness to resume deliveries when circumstances permit.