SHANGHAI (Reuters) – U.S. Commerce Secretary Gina Raimondo spoke on Wednesday about the desire of U.S. companies to do business in China and her hopes for more engagement with Chinese officials about market access, after earlier comments that China was “uninvestable.”
At a news conference in Shanghai, Raimondo said she did not expect any breakthroughs on issues affecting U.S. companies such as Intel (INTC.O), Micron (MU.O), Boeing (BA.N), Visa (VN) and MasterCard (INC). ). MA.N) in her first meetings with Chinese officials, but hopes to “see some results” in the next few months as a result of her four-day visit to Beijing and Shanghai.
Raimondo said that there is a strong desire among American companies to make this relationship a success, and that although some of the actions taken by the Chinese government have been positive, the situation on the ground needs to match the rhetoric.
“There is a desire among American companies to continue doing business (in China). The market is huge,” she said. “American companies want to do business here but need a predictable regulatory environment.”
The Commerce Secretary is the latest Biden administration official to visit China in an attempt to boost communications, especially in the area of the economy and defense, amid fears that friction between the two superpowers could get out of control.
Raimondo insists that the United States does not want to separate from China. “I will leave with some optimism,” Raimondo said of the agreements to continue dialogue on many difficult issues. “We can’t get sucked into a place where there’s a bigger conflict. That’s not in the interest of the United States, it’s not in the interest of China, and it’s not in the interest of the world.”
She told reporters Tuesday on a high-speed train from Beijing to Shanghai that American companies had complained to her that China had become “uninvestable,” referring to fines, raids and other measures that have made doing business in the world risky. The second largest economy.
“For American companies in many cases, patience is running out and it is time to act,” she said on Wednesday.
Raimondo said she raised with Chinese officials that her emails had been hacked, which she said was an “action that undermines trust.” Reuters reported in July that Raimondo was among a group of US officials whose emails were hacked earlier this year by a group Microsoft says was based in China.
Her comment on the difficulties faced by US companies cast a sharp spotlight on trade and investment flows between the two geopolitical rivals.
“The core of economic and trade relations between China and the United States is mutual benefit,” Chinese Foreign Ministry spokesman Wang Wenbin said on Wednesday, citing Premier Li Qiang’s remarks during his meeting with Raimondo on Tuesday.
He added, “The politicization and securitization of economic and trade issues not only seriously affects the relationship and mutual trust between the two countries, but also harms the interests of their businesses and people.”
The companies have been at the heart of the power struggle between the two countries for several years. China has criticized US efforts to block China’s access to advanced semiconductors through export controls.
Raimondo said the dialogue on export control aims to reduce misunderstanding.
“We were able to make clear in the first meeting that we are not targeting China,” she said. “We target actions and behaviors that undermine American national security.” She reiterated on Wednesday that the United States is not prepared to negotiate or change export controls.
Investment flows
The world’s two largest economies used to be each other’s biggest trading partners, but Washington now trades more with neighboring Canada and Mexico, while Beijing trades more with Southeast Asia.
Global investors, spooked by China’s unexpected crackdowns on sectors from e-commerce to education in recent years, have also begun flocking to Chinese assets recently.
The net foreign sale of 82.9 billion yuan ($11.4 billion) of Chinese stocks this month represents a record outflow. Corporate investment is also disappearing, with foreign direct investment reaching its lowest levels since records began 25 years ago.
Michael Hart, president of the American Chamber of Commerce in China, said the companies had been “very clear” in expressing their concerns to the Chinese government.
“Some measures, including business raids and restricting data flows, are not conducive to attracting more foreign direct investment,” Hart said.
This view was echoed by Jens Eskelund, head of the European Union Chamber of Commerce in China, who said that “‘uninvestable’ is not a term we can use to describe China,” instead describing it as “underinvested.”
“A whole new level of challenge”
Raimondo said American companies face new challenges, including “heavy fines with no explanation; revisions to the counterintelligence law that are unclear and sending shock waves through American society; and corporate raids – a whole new level of challenge and we need that in order to overcome these challenges.” “. “It will be processed.”
In her opening remarks at a Wednesday morning meeting with Shanghai Communist Party Secretary Chen Jining, Raimondo struck a positive tone, saying she wanted to discuss “concrete ways we can work together to achieve business goals and create a more predictable business environment.” a predictable regulatory environment and a level playing field for American companies.”
Chen said that a stable relationship between China and the United States is crucial to the world, adding that Shanghai has the highest concentration of American companies in China.
On Wednesday afternoon, the Commerce Secretary visited Shanghai Disneyland and a Boeing facility in the city, touting two notable American exports.
Disney (DIS.N) has emphasized its Chinese ties since opening Shanghai Disneyland – a joint venture with state-owned Shendi Group – in 2016.
Raimondo, who said China was blocking the delivery of Boeing aircraft to Chinese airlines worth tens of billions of dollars, said she had raised airlines’ refusal to accept deliveries of Boeing 737 MAX aircraft but had not obtained any commitments.
David Shepherdson reports in Shanghai. (Additional reporting by Nicoko Chan and Jason Xue in Shanghai, Joe Cash, Martin Quinn Boland, Yu Lun Tian and Lori Chen in Beijing) Editing by Sandra Maler, Robert Birsel, Alex Richardson and Daniel Wallis
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