When the United States and China are at a critical juncture, that means the rest of the world is also looking over the edge.
The equation raised between the two largest economies on the planet is difficult to resolve. The geopolitical interests and strategies of some are opposed to those of others.
In order to ease tensions, at a time when China faces a grim growth outlook, the US Secretary of Commerce, Gina Raimondo, began a visit to Beijing on Monday and made a call to preserve “a stable economic relationship ” in which they share “more than 700,000 million dollars in commercial deals”.
Raimondo, one of the main hawks with China within President Joe Biden’s cabinet, becomes the fourth high-ranking US authority to visit the Asian giant in barely three months in search of a reliable channel of communication.
Despite this exploration of 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 key area, both for the economy and for 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 business relationship, if done right, can stabilize the political relationship,” he said at an event on the US 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 calming 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 his meeting 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 identical length, both faced issues such as cuts in the export of chemical elements, such as gallium and germanium, which are used in high-tech developments.
According to the US, this containment is retaliation for the announcement made by the White House to prohibit US private equity and venture capital firms from investing in China in quantum computing, artificial intelligence (AI) and semiconductors. Although the measure is less far-reaching than expected, the Xi Jinping executive expressed deep disgust, which was added to the already existing one for 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 investment were moderate.
The two agreed to create a working group on trade issues and information exchange 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 of us,” according to Raimondo. “It’s 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.”
