US Commerce chief seeks trade, tourism boost in China talks By Reuters

By David Shepardson

BEIJING (Reuters) -U.S. Commerce Secretary Gina Raimondo arrived in Beijing late on Sunday for a four-day go to geared toward boosting enterprise ties between the world’s two largest economies whereas declaring American nationwide safety commerce measures off-limits for debate.

“In the event you wished to place a tagline to the journey and the mission, it’s shield what we should and promote the place we will,” Raimondo informed reporters on Friday earlier than departing for China. “I am not going to drag my punches subsequent week when I’m there however I intend to be sensible.”

Relations are tense as america works with allies to dam China’s entry to superior semiconductors, whereas Beijing is limiting shipments from outstanding chip firm Micron Know-how (NASDAQ:) and raided and fined U.S. agency Mintz Group $1.5 million for doing “unapproved statistical work.”

Raimondo, who was greeted upon arrival by Chinese language Commerce Ministry official Lin Feng, will maintain bilateral conferences with Chinese language officers on Monday and Tuesday in Beijing earlier than she heads to Shanghai. She will probably be joined by U.S. Ambassador to China Nicholas Burns.

Raimondo spoke to President Joe Biden on Thursday about her go to and his message was enhanced dialogue with China can ease tensions.

“We wish to have a steady business relationship, and core to that’s common communication,” Raimondo stated. “We have to talk to keep away from battle.”

Republicans in Congress have criticized the chance Raimondo will set up a working group with China in the course of the go to to debate U.S. semiconductor export controls.

Raimondo didn’t affirm plans for any working group however emphasised she would inform Chinese language officers “on the subject of nationwide safety we do not negotiate. We do not give concessions. We do not compromise.”

The USA is utilizing authorities incentives and tax coverage to wean American companies off Chinese language provide chains and ramp up U.S. semiconductor manufacturing.

“Simply because we’re investing in America doesn’t imply in any respect that we wish to decouple from China’s economic system,” Raimondo stated.

China’s ambassador to america, Xie Feng, who met Raimondo final week, stated China seeks “mutual respect, peaceable coexistence and win-win cooperation”.

The White Home this month moved to start out prohibiting some U.S. funding in delicate applied sciences in China and plans to quickly finalize sweeping export restrictions on superior semiconductors adopted in October.

‘MANY CHALLENGES’

Raimondo, the fourth high-level U.S. official to go to China lately, is the primary commerce secretary to make the journey in seven years.

She spoke to greater than 100 senior enterprise leaders earlier than the go to and vowed to boost their issues.

“There are such a lot of challenges to doing enterprise in China and exporting to China and China’s unfair buying and selling practices have harm American staff and firms,” Raimondo stated.

Wendy Cutler, vp of the Asia Society Coverage Institute, stated that with a potential go to to the U.S. by President Xi Jinping lower than three months away, “Beijing has an curiosity in working with america to establish sensible areas within the financial relationship the place cooperation could also be potential.”

Raimondo additionally desires to spice up journey and tourism between the 2 international locations.

China and america agreed this month to double the variety of flights permitted between them – nonetheless a fraction of the quantity earlier than the pandemic.

If China returned to 2019 U.S. tourism ranges, it could add $30 billion to the U.S. economic system and 50,000 U.S. jobs, Raimondo stated.

Raimondo is contemplating a go to to Shanghai Disneyland, a three way partnership of Walt Disney (NYSE:) and Chinese language state-owned Shendi Group, a supply informed Reuters.

One other looming query is when Chinese language airways may resume taking deliveries of Boeing (NYSE:) 737 MAX jets after a four-year hiatus. Raimondo stated in 2021 that the Chinese language authorities was stopping its airways from shopping for “tens of billions of {dollars}” in Boeing plane.

Boeing says it is able to ship airplanes to Chinese language airways “when that point comes.”