ST HSIEH
August 24, 2023
A stable US-China economic and trade environment is good for the world. But a “fair” economic and trade environment is difficult to achieve because each side will define “fair” in its own term/condition. More troublesome is that each side has different priorities on the objective.
For example, White House National Security Advisor Jake Sullivan said: “Contrary to claims by some voices in China that we are seeking to slow down China’s economy or weaken China’s economic growth, that’s just not the case.” But there many voices in the US stated that we should decouple with China, and even more extreme positions against China including “regime change” and/or direct military actions.
Biden administration can move “the needle” by actions rather than words alone. For example, “On Monday, US commerce officials announced the removal of 27 Chinese entities from its unverified list,” is a very smart and programmatic move. It will make Secretary Raimondo’s trip to China productive. Because she may be able to get some reliefs from the Chinese on challenges faced by US businesses and define some specific areas for potential cooperation.
Rome is not built in one day, the US-China relation deteriorated through the years, if Biden administration can turn the tide around now, then another Biden-Xi summit may be in sight. After all, a stable US economy and a stable Chinese economy are good for the world. On the other hand, the economies of both US and China are closely coupled and everyone realizes now that “decoupling” the US and China is not possible.
US commerce secretary to visit China next week for talks
AFP
Tue, August 22, 2023 at 2:56 PM PDT·3 min read
US Commerce Secretary Gina Raimondo will visit China next week, Beijing and Washington said Tuesday, adding to a slew of US officials dispatched in recent months to ease tensions between the world’s largest economies.
Washington says it is seeking to better manage its frosty relations with China, with the two powers at loggerheads over everything from trade to human rights and Taiwan.
“Secretary Raimondo looks forward to constructive discussions on issues relating to the US-China commercial relationship, challenges faced by US businesses, and areas for potential cooperation,” the US Department of Commerce said in a statement.
She will travel to both Beijing and Shanghai during the August 27-30 trip, Washington said.
Beijing also confirmed the visit, adding that Raimondo has been invited by her Chinese counterpart Wang Wentao.
Relations between Washington and Beijing have plummeted to some of their worst levels in decades, with Washington’s trade curbs among the top of the laundry list of disagreements.
Washington says its restrictions are crucial to safeguarding national security, while Beijing sees them as hampering its economic rise.
In a briefing on Tuesday, White House National Security Advisor Jake Sullivan said: “Contrary to claims by some voices in China that we are seeking to slow down China’s economy or weaken China’s economic growth, that’s just not the case.”
“A stable Chinese economy is a good thing for the world,” he said.
He added that Raimondo will carry the message that Washington is not seeking to decouple from China but rather to “de-risk”, which means protecting its national security.
This month, Biden issued an executive order aimed at restricting certain American investments in sensitive high-tech areas in China — a move Beijing blasted as being “anti-globalization”.
The long-anticipated rules, expected to be implemented next year, target sectors like semiconductors and artificial intelligence.
US Treasury Secretary Janet Yellen had sought to reassure Chinese officials about the expected curbs during a visit to Beijing last month, promising any new moves would be implemented in a transparent way.
– Steadying ties –
Neither Yellen’s nor Blinken’s visit led to major breakthroughs. A recent Camp David summit and statement between the United States, South Korea and Japan aimed in part at countering Beijing sparked condemnation from China.
Following that summit, President Biden said he still expects to meet Chinese leader Xi again this year.
China looks forward to discussions with US commerce chief as trade flows slow
Joe Cash
Thu, August 24, 2023 at 12:19 AM PDT·1 min read
BEIJING (Reuters) -China is looking forward to in-depth discussions with the United States on resolving economic and trade issues when its commerce secretary, Gina Raimondo, visits next week, China’s commerce ministry spokesperson said on Thursday.
“We have noted that China and the U.S. have encountered some difficulties and challenges in bilateral trade and investment, which are related to the various trade protection measures adopted by the U.S. side,” the ministry spokesperson, Shu Jueting, said.
“China will continue to raise relevant economic and trade concerns with the U.S. and strive to create a fair and stable economic and trade environment,” she said.
Two way trade hit a record $690 billion last year as U.S. demand for Chinese consumer goods rose, as did China’s demand for U.S. farm products and energy, although analysts have identified inflation as primarily responsible for this figure.
This year got off to a significantly slower pace, however, with two-way trade flows through June down $67.6 billion, or 19.6%, from the first six months of 2022, according to U.S. Census Bureau data.
U.S. officials have said Raimondo will carry the message that the United States is not seeking to decouple from China but it will protect its national security.
‘We are in the same boat’: Chinese envoy Xie Feng meets US commerce chief Gina Raimondo to set tone for official visit
South China Morning Post
Wed, August 23, 2023 at 2:30 AM PDT
Chinese ambassador to the United States Xie Feng on Tuesday highlighted the need to “overcome difficulties together in the same boat” as he set the tone and agenda for US Commerce Secretary Gina Raimondo’s official visit to China.
He demanded the US “pay high attention” to the Chinese stance on bilateral commercial issues and raised hopes that both sides could expand areas of cooperation and “shorten the negative list”, according to an embassy readout.
Xie told Raimondo that “the world today is full of changes and chaos while the world economy faces a weak recovery and unpredictable crises in multiple aspects”.
“As China and the US belong to the same planet and share the same blue sky, we are in the same boat and are not immune [to the situation]. We should not harm each other for the benefit of one side but should overcome difficulties together,” Xie said in the meeting, which he described as “in-depth, pragmatic, and constructive”.
The two officials also discussed “challenges faced by US businesses and areas for potential cooperation”, according to the US commerce department.
On Monday, US commerce officials announced the removal of 27 Chinese entities from its unverified list. Companies on the list face stricter scrutiny before they can do business with US suppliers.
The Chinese foreign ministry said the move showed “the two sides can address specific concerns through communication, based on mutual respect”.
But US-China trade remains tangled by a series of export control measures – especially those on semiconductors and the raw materials used to make them – and disputes at the World Trade Organization.