When the United States and China are at a critical juncture, it means that the rest of the world is also approaching the precipice.
The equation posed between the two largest economies on the planet has a difficult resolution. The interests and geopolitical strategies of some are opposed to those of the others.
In order to reduce tensions, at a time when China faces a discouraging growth outlook, US Commerce Secretary Gina Raimondo began a visit to Beijing this Monday and called for preserving “a stable economic relationship ” in which they share “more than 700 billion dollars in commercial deals”.
Raimondo, one of the main hawks with China in the cabinet of President Joe Biden, becomes the fourth high-ranking authority of the United States to visit the Asian giant in just three months in search of a reliable channel of communication.
Despite this exploration of a common ground, the guest defended the escalation in what is described as a technological war, the great point of friction after the restrictions that have been imposed between the two countries in this strategic area, both for to the economy as well as to defense and national security.
But Raimondo, a key architect in the imposition of restrictions and who has already warned that she will not make concessions or negotiate on this issue, offered an optimistic message. Trade can be the key to a more favorable bilateral relationship, he said. “The plan and the hope is that our commercial relationship, if done well, can stabilize the political relationship,” he said at an event on the American health and beauty business. “This is a small example of the plan”, he said.
This message was interpreted as a change of tone in the Biden Administration, after proclaiming a year ago that export control was a new strategic asset.
The secretary insisted on the comforting thesis that most trade relations between the US and China have little connection to national security, and that therefore exports can be promoted and protected at the same time.
However, Raimondo complained in the meeting he held with his Chinese counterpart, Wang Wentao, about the limitations imposed on US technology companies, including Intel and Micron, dedicated to microchips. Over the course of two hours, which was followed by a lunch of the same length, both faced issues such as cuts in exports of chemical elements, such as gallium and germanium, which are used in high technological developments.
According to the US, this contention is in retaliation for the White House’s announcement to ban US private equity and venture capital firms from investing in China in quantum computing, artificial intelligence (AI) and semiconductors. Although the measure is less extensive than expected, Xi Jinping’s executive expressed deep displeasure, which was added to the already existing by another limitation last October in the microchip industry.
Raimondo assured Wang that his country has no intention of hindering China’s economic progress and that restrictions on investments were restricted.
Both agreed to create a working group on trade issues and exchange of information regarding the application of export controls. “It is important to establish a stable economic relationship, which will benefit both countries and, in fact, is what the world expects from us”, according to Raimondo. “It is a complicated relationship, we disagree on certain issues, but progress can be made if we act in a direct, open and practical way”, he added.
Wang showed China’s willingness to boost trade with the US and “foster a better political environment for business between the two countries.”
