US Commerce Secretary Gina Raimondo is embarking on a four-day visit to Beijing with the goal of strengthening business ties between the United States and China. Prior to her departure, Raimondo emphasized the importance of protecting American national security trade measures while also seeking areas of cooperation and promoting economic growth. The visit comes amidst escalating tensions between the two countries, as the US seeks to curb China's access to advanced semiconductors and Beijing imposes restrictions on prominent chip company Micron Technology and fines US firm Mintz Group for unauthorized statistical work.
During her visit, Raimondo aims to engage in open and practical discussions with Chinese officials. She had a conversation with President Joe Biden about the trip, and they both agreed that enhanced dialogue with China can help ease tensions and establish a stable commercial relationship. While there are concerns among Republicans in Congress regarding potential working group discussions on US semiconductor export controls, Raimondo made it clear that when it comes to national security, there will be no negotiations or concessions.
The United States has been utilizing government incentives and tax policies to reduce dependence on Chinese supply chains and boost domestic semiconductor production. Raimondo emphasized that increased investment in the US does not mean a desire to decouple from China's economy entirely. China's ambassador to the US, Xie Feng, also expressed the importance of mutual respect, peaceful coexistence, and win-win cooperation.
Raimondo acknowledged the challenges faced by American businesses when doing business with China, citing unfair trading practices that have negatively impacted American workers and companies. However, she also expressed a desire to address these concerns and explore opportunities for cooperation and growth in the economic relationship between the two countries.
In addition to business discussions, Raimondo also aims to boost travel and tourism between the US and China. The two countries recently agreed to double the number of flights permitted between them, though it still falls short of pre-COVID levels. If China were to return to its 2019 US tourism levels, it could add $30 billion to the US economy and create 50,000 jobs. Raimondo is even considering a visit to Shanghai Disneyland during her trip.
Another issue that needs to be addressed is the resumption of Boeing 737 MAX jet deliveries by Chinese airlines. Raimondo highlighted that the Chinese government has prevented its airlines from purchasing billions of dollars' worth of Boeing aircraft in 2021. Boeing, on the other hand, is ready to deliver the airplanes once the Chinese government allows it.
Overall, Raimondo's visit to China marks an important step towards fostering a stable and cooperative commercial relationship while protecting American national security interests.