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Raimondo to visit China, with US’s conciliatory gestures toward China

Raimondo to visit China, with US’s conciliatory gestures toward China

Posted August. 24, 2023 08:41,   

Updated August. 24, 2023 08:41


U.S. Commerce Secretary Gina Raimondo, who is in charge of regulating U.S. semiconductor exports to China, will visit China from Sunday to Wednesday. The development is noteworthy because the secretary in charge of semiconductor regulation is visiting China at a time when China's real estate crisis and other factors are raising fears of deflation (economic stagnation amid falling prices) there. Earlier in the day, the U.S. Commerce Department made a conciliatory gesture by exempting 27 Chinese companies from temporary export restrictions.

"Secretary Raimondo will be traveling to Beijing and Shanghai, China, to deliver the message that the United States does not seek 'decoupling' from China, but rather seek 'de-risking' to ensure supply chain resilience and protect our national security," White House National Security Adviser Jake Sullivan said Tuesday.

"Secretary Raimondo will provide a clear counterpoint to the view among some pundits in China that 'the U.S. wants China to slow down and stagnate economically,'" Sullivan said, emphasizing that a slowdown in China's economy is not what Washington wants. "China needs to be more transparent with its information disclosure," he said, citing China's failure to disclose its July youth unemployment rate.

Raimondo also met with Chinese Ambassador to the U.S. Xie Feng on the day to discuss economic and trade cooperation between the two countries. This is Xie's first meeting with Raimondo since taking office in May.

The Wall Street Journal reported that discussions on the final rule on semiconductor regulations are expected to be a major part of Raimondo's agenda during his visit to China. The U.S., which began regulating mass-market semiconductors in October last year, has recently decided to regulate investment in artificial intelligence, quantum computers, and advanced semiconductors as well, raising tensions between the two countries. In addition to discussing these issues, Raimondo will reportedly convey Washington’s concerns about China's anti-espionage law, which took effect last month. The West is concerned that the anti-espionage law, which applies broadly to domestic and foreign citizens, could be used as a tool to suppress human rights.