The trade relationship between the United States and China has long been raise the alarm bells in the domain of regional trade. As the world’s two largest economies, their commercial relations have had far-reaching consequences for international trade, economic stability, geopolitical stability, and geopolitical dynamics. This connection has evolved through periods of cooperation, competitiveness, and dispute over the last few decades. The complexities of their trade dynamics have come to the forefront of world discourse with each change in administration on both sides through the course of history, leading to an evolved economic strategy. The recent visit of the US Commerce Secretary, Gina Raimondo to China marks another chapter in this complicated and crucial cooperation, as both countries attempt to enhance trade connections and negotiate the problems and opportunities of the modern global economy.
The United States Commerce Secretary Gina Raimondo arrived in China on Monday August 28, 2023, for a four-day visit. The Director General of China’s Commerce Department Lin Feng welcomed her at the airport. She is the fourth US officer to visit China within a short period of three months. The visit was aimed at boosting business ties between the world’s two largest economies.
On the same day, Raimondo met with the Chinese Commerce Minister Wang Wento, telling her counterpart that “we share $700 billion of trade, and I concur with you that it is profoundly important that we must have a stable economic relationship, it is a complicated relationship, it’s a challenging relationship. We will of course disagree on certain issues, but I believe we can make progress if we are direct, open, and practical.”
The Chinese Commerce minister Wang Wento assured his support to Raimondo’s proposals. He said, “China is willing to work with the US to create a sound policy environment for business cooperation between the two countries and promote bilateral trade and investment based on the principle of mutual respect, peaceful coexistence, and win-win cooperation.” However, the Chinese side expressed “serious concerns” over the US tariffs on Chinese products, semi-conductor policies, investment restrictions, discriminatory subsidies, and sanctions on Chinese companies.
Wang stressed that, “generalization of national security” is not conducive to normal economic and trade exchanges. “Unilateral protectionist” measures go against fair competition and market rules, risking global supply chain and industrial stability. Wang also added that the US has repeatedly stated that it does not seek to decouple from China, and China hopes that the US will implement its statement.
China and the United States agreed to set up a “working group” to seek solutions to specific issues on commerce. According to a statement issued by the Chinese Ministry of Commerce, the working group will be composed of Chinese and US government officials at the level of vice ministers and directors, as well as business representatives. The working group will hold vice-ministerial meetings twice a year, with the ministers, committing to regular communication and an annual meeting of the government nominated high officials and ministers of commerce.
Both the parties reaffirmed their firm commitment to avoiding decoupling and carrying out their stated objectives, such as, a business friendly and a predictable environment for international investors and traders. They acknowledged the importance of US-China economic relations not just for the two countries, but also for the rest of the world.
The visit of the US Commerce Secretary comes after Biden and Chinese President Xi Jinping agreement at the G20 summit in Bali last year to “deepen communication” between their countries after years of rocky relations. Besides the visit of US Commerce Secretary, the visit of US Treasury Secretary Janet Yellen, Secretary of State Antony Blinken, and climate envoy John Kerry have all visited China this year as part of the tentative thaw. The US-China relations have sunk to the lowest point in decades in recent years amid disputes over the issues ranging from trade and national security to the war in Ukraine and the status in Taiwan.
Raimondo’s visit to China serves as a pivotal movement in the ongoing saga of US-China trade relations, with both nations seeking to navigate the complexities of their economic ties while addressing shared concerns on the global stage. The outcome of these discussions and the commitment to continued communication will undoubtedly shape the future trajectory of this critical relationship, impacting global trade and economic stability.
The commitment to conduct two rounds of talks aimed at decreasing misunderstandings and increasing cooperation is one of the key achievements of Raimondo’s visit. The first dialogue will focus on commercial issues and will include business executives, while the second will focus on export control issues through information exchange between the two global economic giants.
These conversations have been welcomed by industry experts and organizations as a constructive step towards assuring continuous participation and understanding in the US-China trade relationship. However, not all reactions have been positive. For instance, the US Representative Michael McCaul, Chairman of the House Foreign Affairs Committee, expressed concerns over the Biden administration’s decision to organize a working group with China is “at best Naive.”
Opinions expressed in this article are those of the author.