Last Updated on August 31, 2023 by Robert C. Hoopes
US Commerce Secretary Gina Raimondo recently embarked on a trip to Shanghai, where she expressed her desire for American companies to continue doing business in China. During her visit, Raimondo emphasized the need for further engagement with Chinese officials to address market access issues that affect US firms such as Intel, Micron, Boeing, Visa, and Mastercard.
Raimondo stressed the importance of a predictable regulatory environment for US businesses in China. She highlighted the Biden administration’s goal of strengthening communication with China to prevent an escalation of tensions. Contrary to the notion of decoupling from China, Raimondo insisted on the need for continued dialogue between the two countries.
The US Commerce Secretary also raised concerns about China’s actions, including fines, raids, and even hacking her personal emails. These actions have eroded trust between the two nations. However, Chinese Foreign Ministry spokespersons have argued that politicizing economic and trade issues only harms the relationship between the countries and their businesses.
The power struggle between the US and China has had a significant impact on trade and investment flows. Both countries are now trading more with other partners, leading to a decrease in foreign direct investment. Global investors are also pulling out of Chinese assets, resulting in record outflows. To address these concerns, American and European business chambers have expressed their worries to the Chinese government about actions that discourage foreign investment.
Raimondo reiterated the new challenges faced by US firms operating in China, including exorbitant fines, revisions to counterespionage laws, and raids on businesses. She held discussions with Shanghai Communist Party Secretary Chen Jining on ways to create a more predictable and level playing field for American businesses in China.
During her visit, Raimondo highlighted the significance of US exports to China by visiting Shanghai Disneyland and a Boeing facility. This underscores the importance of maintaining a strong economic relationship between the two countries.
In conclusion, Raimondo’s visit to Shanghai serves as a platform for discussing the issues surrounding US businesses in China. While expressing a desire for American firms to continue operating in the country, she also highlighted the challenges they currently face. The power struggle between the US and China has undoubtedly impacted trade and investment flows, prompting concerns from global investors and business chambers. Nonetheless, Raimondo remains committed to fostering dialogue and finding ways to create a more stable and level playing field for American businesses in China.