Introduction

During a recent trip to Beijing and Shanghai, U.S. Commerce Secretary Gina Raimondo met with Chinese officials to establish open lines of communication between the two nations. This visit marks the first time a U.S. Commerce secretary has traveled to China in five years, amidst a period of growing tension in the bilateral relationship.

Addressing the Competition

Raimondo acknowledges that the United States is engaged in a fierce competition with China across all levels. However, she emphasizes the need to manage this competition and highlights that conflict does not serve anyone’s interest.

Importance of Communication

Raimondo emphasizes that a lack of communication between the U.S. and China could further escalate tensions and lead to misunderstandings. Structured discussions are therefore crucial for addressing commercial issues that arise between the two countries.

Previous High-Level Visits

Raimondo’s visit follows recent visits from other high-level U.S. officials, including U.S. special envoy for climate John Kerry, U.S. Treasury Secretary Janet Yellen, and U.S. Secretary of State Antony Blinken. The visit, however, faced scrutiny after Chinese hackers breached Raimondo’s emails earlier this summer.

Addressing Concerns

During her visit, Raimondo raised concerns regarding national security, U.S. labor, and U.S. business. The U.S. Department of Commerce’s Bureau of Industry and Security had previously announced new export controls limiting the ability of Chinese businesses to purchase certain advanced semiconductors from American suppliers.

Export Controls and National Security

Raimondo clarifies that the export controls are implemented to safeguard national security rather than gain an economic advantage. She emphasizes that the U.S. will not sell the most sophisticated American chips to China for military purposes. However, the U.S. will continue selling billions of dollars worth of chips to China, as the majority of chips are not the cutting-edge technology meant for military applications.

A Nuanced Policy

Raimondo acknowledges that the export controls reflect a nuanced and complex policy. While certain chips are restricted, selling other chips to China will generate revenue for American businesses, which can be invested in further research and development.