US Aims for a More 'Consistent' Business Environment in China

30 Aug, 2023

US Aims for a More 'Consistent' Business Environment in China

The United States is actively engaging with China to establish a more "foreseeable" environment for American enterprises in Shanghai, as conveyed by Commerce Secretary Gina Raimondo during her discussions with local officials in the economic hub on Wednesday.

During her dialogue with Chen Jining, the Communist Party chief of Shanghai, on the fourth day of her diplomatic mission to China, Raimondo highlighted the significance of a "steady economic partnership that benefits the United States, China, and the global community."

Underscoring the pivotal nature of the US-China economic relationship, she expressed her intent to collaborate in order to bring about enhanced predictability in the business landscape, consistent regulatory conditions, and a balanced competitive arena for American companies operating in Shanghai.

For an extended period, American companies in China have raised concerns about an uneven business climate, marked by insufficient safeguards for intellectual property and preferential treatment given to domestic rivals. These concerns have been exacerbated this year by a comprehensive crackdown on US consulting firms operating within China.

The enactment of a new anti-espionage law on July 1 has also sown unease among both foreign and domestic corporations as they strive to decode the authorities' intentions and determine the boundaries of acceptable conduct.

In discussions with Vice Premier He Lifeng in Beijing on Tuesday, Raimondo addressed what the US perceives as inequitable trade practices by China, as outlined in a statement from the US Department of Commerce. She also emphasized the critical need to reinforce the protection of trade secrets for American businesses that are active in China.

Raimondo's visit is part of a series of high-level visits by US officials to China, reflecting Washington's commitment to enhance its collaborative rapport with its foremost strategic competitor.

Throughout her trip, Raimondo has been seeking candid exchanges with Chinese counterparts concerning restrictive trade measures. Both sides have reached an accord to establish a task force aimed at resolving an extensive array of trade disputes.

She has reiterated on multiple occasions that US restrictions on Chinese enterprises, purportedly undertaken to safeguard national security, need not impede the broader economic relationship. However, Chinese officials have countered this stance, with Premier Li Qiang cautioning Raimondo against the "politicization" of trade matters, asserting that such actions could have dire consequences for the global economy.

During her visit, Raimondo also engaged with students at New York University's Shanghai campus and addressed a gathering of women executives hosted by the American Chamber of Commerce in the city.

The President of the American Chamber of Commerce in China expressed support for Raimondo's statements, affirming that the organization has unequivocally conveyed to the Chinese government that certain actions, such as company raids and data flow restrictions, could deter additional foreign direct investment.

Additionally, Raimondo visited Shanghai Disneyland and was scheduled to hold a press conference at Shanghai's Pudong Airport before concluding her visit to the country.